Cambridge Associates, one of the world’s largest investment consultants, has become the latest company to sign up to the Task Force on Climate-related Financial Disclosures (TCFD).
The investment group, which advises a wide range of investors including private clients, foundations and endowments, has joined more than 300 asset managers, banks and insurers in signing up to the TCFD, which was set up by the G20 and is chaired by Bank of England governor Mark Carney.
In a statement pledging his company’s commitment, Chris Varco, managing director and ESG specialist at Cambridge Associates, said he recognised the important role that investment consultants play in making asset owners award of the climate change issues in their investments.
“Cambridge Associates is committed to helping our clients to fully understand and monitor the climate related risks and opportunities their investment portfolios are exposed to.”
“We have a proven track record in helping investors make more informed capital allocation decisions within the context of better climate-related financial risk disclosures, and that should lead to more robust risk management and superior risk-adjusted returns.”
The firm, which has offices around the world including Boston, New York, London, Sydney and Singapore, said it will work with current and prospective clients to further integrate and use climate-related financial disclosures.
The TCFD recommends that organisations can clearly identify the risks to their businesses relating to climate change in their governance processes. It also asks that companies disclose the actual and potential impacts of climate-related risks and opportunities on the organisation’s strategy, and financial planning.
Companies are also expected to show how they identify, assess, and manage climate-related risks and state the metrics and targets used to assess and manage relevant climate-related risks.