The Asian Development Bank (ADB) has declared its support for the Task Force on Climate-Related Financial Disclosures (TCFD), reaffirming its commitment to building a more resilient financial system, increasing transparency, and safeguarding against risks from climate change through enhanced disclosure.
"By signing up to this important initiative, ADB is demonstrating its commitment to manage climate-related risks and embrace the opportunities presented by the low-carbon transition," said ADB Managing Director General Woochong Um.
The Financial Stability Board created the TCFD as a framework to improve and increase reporting of climate-related financial information for consistent use by organizations to inform their stakeholders. ADB joins more than 2,500 organizations in publicly declaring support for the TCFD initiative, said a press release.
ADB is implementing TCFD's recommendations to raise awareness of climate-related risks across its portfolio of operations in its developing member countries, resulting in better risk management and more informed strategic planning.
"Supporting the task force and implementing TCFD reporting mainstreams and quantifies the adverse impact of risk associated with climate change. It will demonstrate to ADB's investors, shareholders, and other stakeholders our support for greater transparency for climate finance," said ADB Vice-President for Finance and Risk Management Ingrid Van Wees.
"Our hope is that global actions like the TCFD will lead regional financial regulators to enhance disclosure requirements for all types of financial institutions to support the timely derisking of the financial system." Added Wees.
The TCFD's recommendations will help ADB prepare for implementation of the Taskforce on Nature-Related Financial Disclosures framework, which is scheduled to be launched in 2023 and will help build a consensus on integrated risk management and disclosure for nature-related reporting.
As Asia and the Pacific's climate bank, ADB has committed to aligning its operations with the goals of the Paris Agreement and last month raised its level of ambition to deliver $100 billion in cumulative climate financing from its own resources from 2019 to 2030. At least 75 percent of ADB's operations, by number of projects, will feature climate adaptation and mitigation initiatives by 2030.