Mr. TV Narendran, MD Tata Steel India & SEA, Publicly Commits to Support the Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)
TCFD Recommendations Help Companies Disclose Climate-related Risks and Opportunities Efficiently and Effectively
Mr. TV Narendran, MD Tata Steel India & SEA joined over 100 other business leaders and companies to publicly commit their support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). The Task Force, established by the Financial Stability Board (FSB) in late 2015, released its final report—Recommendations of the Task Force on Climate-related Financial Disclosures—and supporting materials on June 29, 2017.
As a growing number of investors demand more information around how companies are addressing the effects of climate change, it is imperative to recognize the importance of disclosing climate-related risks and opportunities. Adopting the TCFD recommendations is an important step forward in enabling market forces to drive efficient allocation of capital and support a smooth transition to a low-carbon economy.
Expressing his views on the same, Mr. Koushik Chatterjee, Group Executive Director (Finance, Corporate & Europe), Tata Steel and Member of TCFD said, “Developing a sustainable strategy has become the core purpose of companies across the world as they get future ready to embrace disruption in technology, supply chain and business models. One of the principle foundations of a sustainable strategy is recognition of climate change related risks and opportunities by the boards and leadership of corporations.
Challenges of climate change are real and will affect everyone in the society including large and small businesses across sectors. Therefore, it is incumbent on us to evaluate the risks and opportunities of climate change to enable us to think, plan and act on specific goals to future proof our businesses. Tangible actions like reducing our carbon footprints and water intake, switching to renewables to the extent possible, and embracing circular economy will all help in tackling this universal challenge of climate change. That is why it is important to have a climate change related framework that brings environment, social and governance to the front and center of the Board agenda and mainstream corporate reporting. The Task Force brings that framework to the table, helping businesses and the investors evaluate the potential risks and rewards of a transition to a lower carbon economy and bring future nature of issues into the present through scenario planning which will in turn ensure tighter investors engagement and meet stakeholders’ expectations going forward.
Tata Steel Group as an institution is committed to supporting the TCFD's voluntary recommendations as these disclosures are an important step forward in enabling market forces to drive efficient allocation of capital and support a smooth transition to a low-carbon economy.”
The Task Force’s recommendations are structured around four thematic areas that represent core elements of how companies operate: governance, strategy, risk management, and metrics and targets. These areas reflect the type of information investors expressed that they need to make better, more informed decisions. The Task Force also developed guidance to assist companies in developing their disclosures to meet those needs.
Michael Bloomberg, Chair of the Task Force commented "Climate change presents global markets with risks and opportunities that cannot be ignored, which is why a framework around climate-related disclosures is so important. The Task Force brings that framework to the table, helping investors evaluate the potential risks and rewards of a transition to a lower carbon economy. We're pleased to see so many businesses and investors around the world support the recommendations of the TCFD and hope others will be encouraged to join our initiative."
Speaking about the work of the Task Force, FSB Chair Mark Carney said: “The Task Force’s recommendations have been developed by the market for the market. They set out the disclosures that a wide range of users and preparers of financial filings have said are essential to understanding a company’s climate-related risks and opportunities. Widespread adoption will provide investors, banks and insurers with that information, helping minimise the risk that market adjustments to climate change will be incomplete, late and potentially destabilising.”
In February this year, the FSB asked the TCFD to continue its work until September 2018. With the publication of its final report, the Task Force is focused on promoting and monitoring adoption of the recommendations going forward. The final report will be presented at the July G20 Summit in Hamburg, Germany by FSB Chair and Bank of England Governor Mark Carney.
The final version of the report is available here and a summary of significant changes and clarifications since the draft report can be found here. The full list of CEOs supporting the work of the Task Force is viewable here.
For additional information, please contact:
Chief, Corporate Communications, India & SEA, Tata Steel
About Tata Steel
Tata Steel Group is among the top global steel companies with an annual crude steel capacity of 27.5 million tonnes per annum (MTPA) as on March 31, 2017. It is the world's second-most geographically-diversified steel producer, with operations in 26 countries and a commercial presence in over 50 countries. The Group recorded a consolidated turnover of US $18.12 billion (INR 117,420 crore) in FY17. Tata Steel Group is spread across five continents with an employee base of nearly 74,000. Having bagged the Deming Application Prize and Deming Grand Prize for continuous improvement in 2008 and 2012 respectively, Tata Steel has now been recognised as the global ‘Industry Leader’ in ‘Steel category’ by Dow Jones Sustainability Index (2015). Besides being a member of the World Steel Climate Action Programme, Tata Steel has also been felicitated with several awards including the Prime Minister’s Trophy for the best performing integrated steel plant for 2013-14 (received in 2017), Best Risk Management by CNBC TV18 (2016), ‘Best-in-class Manufacturing’ award from TIME India (2016) and the ‘Most Ethical Company’ award from the Ethisphere Institute (2016), IIM Sustainability Award (2015), among several others