City of London Green Finance Initiative Working Group on Data, Disclosure and Risk

The introduction of a comprehensive and world-leading UK climate-related and sustainability-related financial disclosure framework is a key priority for both the UK Green Finance Taskforce (GFT) and the City of London Green Finance Initiative (GFI). This report, produced jointly by the GFT Taskforce on Climate-related Financial Disclosures (TCFD) Workstream and the GFI Working Group on Data, Disclosure and Risk, sets out how and why the UK can introduce a new climate-related and sustainability-related financial disclosure framework.

There are strong economic and financial arguments for greater disclosure of environment-related risk, opportunity and impact – particularly those related to climate change. There are also compelling reasons for UK leadership on these issues.

These arguments fall into three broad categories: economic outcomes; trust in capital markets; and financial stability. Each on their own would justify the implementation of this report’s recommendations. Together they provide an overwhelming case for action.

In this report, we set out how to create the most comprehensive and deeply embedded disclosure framework in the world. It would be inherently flexible, improve over time, and be automatically mainstreamed.