The Asian Development Bank (ADB) has expressed its support for the Task Force on Climate-Related Financial Disclosures (TCFD), reiterating its commitment to a more resilient financial system, increased openness, and greater disclosure to mitigate the risks of climate change.
“By joining this crucial project, ADB is demonstrating its commitment to managing climate-related risks and seizing the opportunities afforded by the low-carbon transition,” said Woochong Um, Managing Director General of the Asian Development Bank.
The TCFD was designed by the Financial Stability Board as a framework to improve and expand reporting of climate-related financial data for companies to use consistently to inform their stakeholders. According to a news release, ADB has joined over 2,500 organizations in officially proclaiming support for the TCFD effort.
The ADB is implementing the TCFD’s recommendations to enhance climate-related risk awareness across its portfolio of operations in developing member countries, resulting in better risk management and strategic planning.
“Supporting the task force and implementing TCFD reporting helps to mainstream and quantify the negative effects of climate change risk. It will show ADB’s investors, shareholders, and other stakeholders that we support increased climate finance transparency “Ingrid Van Wees, ADB Vice-President for Finance and Risk Management, said
“We expect that global efforts like the TCFD will encourage regional financial regulators to strengthen disclosure rules for all types of financial institutions, allowing the financial system to derisk more quickly.” Wees has been added.
The recommendations of the Taskforce on nature-related Financial Disclosures will aid ADB in preparing for the implementation of the Taskforce on Nature-Related Financial Disclosures framework, which is set to launch in 2023 and will aid in the development of a consensus on integrated risk management and disclosure for nature-related reporting.
As Asia and the Pacific’s climate bank, ADB has pledged to integrate its operations with the Paris Agreement’s goals, and last month increased its intention to deliver $100 billion in climate finance from its own resources between 2019 and 2030. By 2030, climate adaptation and mitigation activities will be included in at least 75% of ADB’s operations, based on the number of projects.
