Transparency from companies and governments about climate-related information, risks and opportunities is crucial for building a resilient economy, empowering communities and creating an equal and fair society. In the era of climate change, a standardized disclosure framework to understand climate risk is not only helpful to investors, it’s also critical to companies for strategic planning.
The disclosure of climate-related information is the process of making relevant data and insights available to the public or specific stakeholders about the potential risks and opportunities that climate change poses to an organization’s business, financial performance, and long-term sustainability.
Disclosure relates to the reporting and transparent communication of information concerning the environmental impact of businesses, projects, or policies. This includes the disclosure of greenhouse gas emissions, pollution levels, resource consumption, waste management practices, and other environmental factors.
Climate risk disclosure provides stakeholders, including investors, regulators, customers, employees, and the public, with information to assess how well an organization is managing and preparing for climate-related risks. Environmental disclosure allows for informed decisions and a deeper understanding of the potential impacts of climate change on an organization’s strategy, financial stability, and overall performance, promoting transparency, accountability, and sustainable practices.
Climate risk disclosure can take various forms, including annual reports, financial statements, sustainability reports, dedicated climate risk reports, and responses to specific reporting frameworks, such as the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.
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Published by the CMCC Foundation — a research center that develops models and predictions to study the interaction between changes in the climate system and social, economic and environmental changes — Foresight is an observatory on tomorrow, a digital magazine that collects ideas, interviews, articles, art performances, and multimedia to tell the stories of the future.
SEEDS is a collection of words with which we hope to plant the seeds of awareness, providing in depth definitions of some of the most pressing topics related to climate change. Because understanding the discourse that surrounds the climate crisis is the key to a sustainable future.