Implementing TCFD-aligned Stewardship? Minerva can help!

Asset managers and owners around the world increasingly look to the Financial Stability Board’s Task Force on Climate-Related Financial Disclosures (TCFD) to help them address the risks associated with a transition to a lower carbon economy.

What are the TCFD Recommendations?

TCFD recommends four pillars of good climate governance, with detailed supporting guidance.

Consistent, decision-useful data

High quality data based on agreed standards is an essential ingredient for informed decision making. That’s why Minerva’s sustainability governance solutions are fully aligned with TCFD recommendations.

Minerva is Europe’s independent and objective governance data company. In 2013 we extended our pre-AGM research to incorporate sustainability governance metrics. With the launch of the Financial Stability Board’s taskforce recommendations in 2017 we ensured that our research framework and data analysis methodology were fully aligned.

Experts, not Robots

Corporate disclosures are still evolving, so the majority are still very rudimentary and inconsistent. And with so much hype around AI and Green-washing, it’s good to know that there’s still a place for human expertise and judgement. Although Minerva leverages the power of machine learning and Big Data techniques, our long-standing experience of complex disclosures and highly trained analysts can really make a difference. The result is that Minerva now has over 5 years of high quality TCFD-related data, including comprehensive metrics and targets. To ensure maximum efficiency, Minerva’s data, customized voting guidelines and electronic voting platform and web disclosure services are seamlessly integrated.  

Regulatory Action to Support TCFD

Climate change presents major challenges and opportunities for investors and investee companies alike. Global regulators are currently taking proactive steps to improve the quality of disclosures and stewardship. During 2020, the UK, in partnership with Italy, will be home to COP26.  The Year of Climate Action has seen the launch of a number of critical initiatives, including:

Quoted Companies

In March 2020, The UK’s Financial Conduct Authority (FCA) launched a consultation on the UK Listing Rules which would strengthen climate-related disclosures for all premium listed companies.

The consultation, CP20/3 CP20/3: Proposals to enhance climate-related disclosures by listed issuers and clarification of existing disclosure obligations, is open until 5 June 2020

Pension Schemes

UK Pension Schemes are invited to respond to their own consultation “Aligning your pension scheme with the TCFD recommendations“. The government has published an accessible quick start guide covering 5 key issues for pension trustees:

  1. Why is climate change important for pension schemes?
  2. Trustees’ legal duties
  3. What is TCFD and how can it help?
  4. TCFD in the investment cycle
  5. Specific aspects of TCFD reporting

TCFD Guidance for Pension Schemes from UK Government

The Department of Work and Pensions is taking feedback on the proposals until 7 May 2020

Minerva – here to help

So, if you are looking for a better way of voting why not say and find out how Minerva can support your TCFD stewardship journey. 

Last Updated: 12 March 2020