The TCFD (Task Force on Climate-related Financial Disclosures) has launched a consultation on the development and use of forward-looking climate-related metrics by the financial sector.
Such metrics are increasingly relied upon by asset owners and managers and others in the financial sector to drive capital allocation decisions, evaluate strategic resilience and progress towards climate-related targets and to engage with portfolio companies on these topics. The TCFD Guidance for Asset Owners (see extract below) recommends that asset owners should describe the metrics used to assess the climate-related risks and opportunities in each fund or investment strategy, and how these metrics have evolved over time.
"Asset owners should describe metrics used to assess climate-related risks and opportunities in each fund or investment strategy. Where relevant, asset owners should also describe how these metrics have changed over time. Where appropriate, asset owners should provide metrics considered in investment decisions and monitoring."
Extract from Implementing the recommendations of the Taskforce on Climate-related Financial Disclosures p. 36.