For the first time since the TCFD published its recommendations in 2017, over 50% of companies reviewed disclosed their climate-related risks and opportunities.
However, despite the significant progress, TCFD said overall disclosure is still lacking.
"As governments and businesses around the world work to accelerate the transition to a clean energy economy, they should continue to draw on the TCFD recommendations as a critical tool in their efforts," said Michael R. Bloomberg, task force chairman, in a news release.
He added, "When companies disclose clear, consistent and accurate information on the risks they face from climate change, investors and business leaders can make more informed and sustainable financial decisions. That strengthens our global economy, improves health, and helps address the climate crisis."
Governments and organizations around the world are moving toward requiring climate disclosures through legislation and regulation, the TCFD noted.
In the U.S., the Securities and Exchange Commission currently is working on a rule-making to potentially mandate public companies disclose climate risks. It received more than 550 unique comments on the issue during a comment period that ended in June.
"There is clear and growing consensus among investors and regulators on the importance of climate-related disclosure and the need for standardized, transparent data to support capital allocation decisions," said Mary Schapiro, head of the TCFD and vice chairwoman for global public policy at Bloomberg LP, in the release. "As countries and companies around the world set net zero targets, the TCFD framework is increasingly becoming the foundation for standards and requirements needed to chart the transition to the low-carbon economy."
