The report includes proposals for disclosing not just how climate change might influence the performance of a company, but also the impact of the company itself on climate change.  

It contains recommendations that will allow the Commission to update its non-binding guidelines on non-financial reporting with specific reference to climate-related information, in line with the recommendations of the task force on climate-related financial disclosures (TCFD) established by the Financial Stability Board, and with the Commission proposal for a ‘taxonomy’ of sustainable economic activities.

Specific disclosures and guidance are described under each element of the non-financial reporting directive requirements, including metrics for all companies in scope, non-financial companies, and for banks and insurance companies.

The report distinguishes between three types of disclosure:

• those that all companies should disclose;
• those that companies should consider disclosing; and
• those that companies may consider disclosing.

Stakeholders are invited to provide feedback on the report by 1 February. The Commission will take the group’s recommendations into consideration when it updates the non-binding guidelines on non-financial disclosure.

The technical expert group expects to complete its other reports, on taxonomy, carbon benchmarks, and green bonds, by June 2019.

European Commission Report on climate-related disclosures

Report by Pat Sweet