Carney urges insurers to increase quantity/quality of climate-related disclosures

Written by Adam Cadle

08/10/2019

Insurers must increase the quantity and quality of climate-related disclosures; refine disclosure metrics to determine which ones are most decision-useful; spread knowledge on how to assess strategic resilience and consider how to disclose the extent to which portfolios are ready for the transition to net zero, Bank of England governor Mark Carney has stated.

Speaking at the Task Force on Climate-related Financial Disclosures (TCFD) Summit 2019 in Tokyo, Carney said “the demand for TCFD disclosure is now enormous”.

“Current supporters control balance sheets totalling $120trn and include the world’s top banks, asset managers, pension funds, insurers, credit rating agencies, accounting firms and shareholder advisory services.”

Carney said “the Bank of England is doing its part by assessing the strategic resilience of the world’s leading financial centre”.

“The Bank will be the first regulator to stress test its financial system against different climate pathways, including the catastrophic business as usual scenario and the ideal – but still challenging – transition to net zero by 2050 consistent with the UK’s legislated objective.”

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