Two Japanese chemical firms have this month announced their support for the Task Force on Climate-related Financial Disclosures (TCFD).
The initiative, which was established by the Financial Stability Board (FSB – the international body that monitors and makes recommendations about the global financial system) in 2015 and is led by Bank of England governor Mark Carney and US businessman Michael Bloomberg. More than 500 companies have so far said that they support the initiative.
Last week, Mitsui Chemicals, which is listed on the Nikkei Stock Exchange, said that it supports the TCFD's recommendations. It stated: “Mitsui Chemicals, through the provision of products, services, and technologies that lead to solving climate change-related issues, will contribute to realize a low-carbon society by promoting greenhouse gas (GHG) emission reductions and a healthy and happy society that is resilient to climate change risks. We state that Mitsui Chemicals continues to deepen its understanding of climate-related risks and opportunities, discloses its efforts, and expresses its support for the TCFD recommendations.”
And earlier in January, another Japanese chemical group, Sekisui Chemical, which is listed on the Tokyo Stock Exchange, expressed its support for the recommendations of the TCFD on analysis and disclosure of the impact of climate change on corporations’ financial affairs. In its statement, it says the company has already “set a policy of actively disclosing important corporate information from the viewpoint of financial, environmental and social concerns”. In June 2018, the company also announced its adherence to certified science-based targets (SBT), part of its efforts to effect a 'major reduction' of GHG emissions, also within its supply chain, by 2030.
In June 2017, the TCFD published a set of recommendations in which it calls for financial institutions, corporations and governments to disclose the impacts of climate change in their financial reports. As of the end of September 2018, the TCFD reports that 513 organizations across the globe have expressed their support for its recommendations.
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