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Program UpdatesOpen Letter to Mark Carney & Michael Bloomberg: Ensure Climate Risk Task Force Includes Diverse Views
Open Letter to Mark Carney & Michael Bloomberg: Ensure Climate Risk Task Force Includes Diverse Views
January 4, 2015
TO:
Mark Carney
Chairman, Financial Stability Board
Michael Bloomberg
Chair, FSB Task Force on Climate-Related Disclosure
RE: Task Force on Climate-related Financial Disclosure – Fostering Diverse Views
Dear Mr. Carney and Mr. Bloomberg,
Congratulations to you both for launching the FSB’s Task Force on Climate-related Financial Disclosure (TCFD). We are encouraged that the FSB has joined the climate change debate through its advocacy for greater transparency in global financial markets and institutions. We are hopeful that this Task Force could help identify and measure the financial costs and risks associated with climate change and in turn, catalyze a shift in the activities of investors, insurers and market participants across various sectors.
We applaud the FSB for its continued commitment to public consultation. It is encouraging to see the TCFD also commit to this practice – promising to “conduct public outreach”. However, we are concerned that non-industry climate risks experts will be excluded from the Task Force itself (i.e. those at the decision-making table).
We recognize how essential it is to have an industry-led Task Force. Financial industry leaders know the challenges and opportunities to changing disclosure practices, and many in the financial industry have already developed disclosure policies that account for climate-related risks. We understand that the implementation of Task Force recommendations will be voluntary, and we presume that industry leadership is needed to provoke broad “buy-in” from the financial sector.
Nevertheless, an “industry-led” Task Force does not have to be an “industry-only” Task Force. It should include experts from outside of the financial industry – especially to reduce groupthink and conflicts of interest. Diversity on this new Task Force will help avoid lowest common denominator outcomes, which is something we cannot afford when it comes to climate change.
We laud the commitment that both of you have made to greater transparency in finance, and your leadership to ensure the financial sector adapts to the risks posed by climate change. We hope you will now commit to including diverse perspectives, which will add great value to the final outcomes of this important Task Force.
We look forward to learning about the Task Force’s next steps.
To sign-on, please email Nathan Coplin at This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Contact:
Nathan Coplin
Deputy Director, New Rules for Global Finance
Washington, DC
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
810-348-3165
FSB Watchis an initiative of New Rules for Global Finance, African Economic Research Consortium, Brookings and Development Finance International. The initiative is managed by New Rules for Global Finance. More information can be found at www.FSBwatch.org.