Its status report provides an overview of the extent to which companies in their 2017 reports included information aligned with the core TCFD recommendations published in June 2017. The report also provides information to support preparers of disclosures in implementing the TCFD recommendations.

The TCFD surveyed disclosures of over 1,700 firms from diverse sectors with broad geographical representation. It found that the majority of the firms surveyed disclose information aligned with at least one of the TCFD recommended disclosures.

However, while many companies describe climate-related risks and opportunities, only a small number report on the likely financial impact of these.

A minority of companies disclose forward-looking climate targets or the resilience of their strategies under different climate-related scenarios, including a 2°C or lower scenario, which is a key area of focus for the task force.

The study also revealed that disclosures vary widely across industries. For example, more non-financial companies reported their climate-related metrics and target than did financial companies. However, financial companies were more likely to disclose how they had embedded climate risk into overall risk management.

Disclosures are often made in sustainability reports or spread across financial filings, annual and sustainability reports, the research found.

The TCFD, which was established by the Financial Stability Board (FSB), said it was encouraged that a majority of companies were making disclosures aligned with one or more of its recommendations, given the limited amount of time available to organisations to take these onboard.

Mark Carney, governor of the Bank of England and FSB chair, said: ‘Today’s announcement shows that climate-disclosure is becoming mainstream.

‘The TCFD’s status report based on companies’ 2017 financial filings, demonstrates the practical, decision-useful nature of the recommendations.

‘As preparers, financial institutions and investors “learn by doing”, a virtuous cycle will be created where more and better information creates the imperatives for others to adopt the TCFD and for everyone to up their game on the quality of information they provide.’

In the report, the TCFD says that over the next nine months, the task force will continue to promote and monitor adoption of its recommendations and will prepare a second status report for the FSB in mid-2019.

The report stated: ‘The task force believes the success of its recommendations depends on continued, widespread adoption by companies in the financial and non-financial sectors.

‘Through widespread adoption, climate-related risks and opportunities will become a natural part of companies’ risk management and strategic planning processes.

‘As this occurs, companies’ and investors’ understanding of the financial implications associated with climate change will grow, information will become more useful for decision making, and risks and opportunities will be more accurately priced, allowing for the more efficient allocation of capital.’

The TCFD announced that the number of firms supporting its recommendations has grown to over 500, with market capitalisations of over $7.9 trillion, and including financial firms responsible for assets of nearly $100 trillion. This compares with 100 firms when the recommendations were launched in June 2017.

Report by Pat Sweet