Japanese conglomerate Teijin Group has joined a new Consortium set up by a coalition of Japanese companies to help improve reporting of the financial impacts of climate-related risks and opportunities and boost investment and innovations centered around sustainability.
Established yesterday (27 May), the Task Force on Climate-related Financial Disclosures (TCFD) Consortium will operate as a platform where financial institutions and business corporations pursue climate-related financial disclosures recommended by the TCFD.
Set up by the Financial Stability Board (FSB) in 2015, the TCFD aims to address the impact climate change is having on companies and the global financial system through disclosure.
In June 2017 it proposed that financial institutions, companies, and governments disclose the financial impact of their climate-related risks and opportunities in their financial report.
The launch of the new Consortium comes two months after Teijin made public its support for the TCFD and pledged to transparently disclose its information according to the organisation’s recommendations.
A total of 162 Japanese companies are now supporting the TCFD, 62 of whom declared their support at the launch of the Consortium.
“Promoting the disclosure is essential to realise a virtuous cycle between the environment and economic growth, meaning that more investment in companies willing to tackle climate change will bring further growth. We declare the establishment of the TCFD Consortium, a platform where financial institutions and business corporations pursue climate-related financial disclosures recommended by the TCFD. The discussion topics in the consortium will include what and how the corporations disclose, as well as how the financial institutions utilise the disclosed information for investment decisions,” a statement on the launch read.
Teijin said by participating in the Consortium, it aims to strengthen communication with its stakeholders regarding climate-related risks and opportunities and to reflect the objectives in the company’s business strategies.
Going forward, Teijin says it aims to be a company that supports the society of the future by providing not only chemical-based solutions for materials but also solutions for enhanced quality of life.