UNDP Sustainable Insurance Forum (SIF) publishes paper to support the implementation of TCFD recommendations
Geneva/New York: The UNDP Sustainable Insurance Forum (SIF) has published a paper ‘Implementation of TCFD Recommendations by Insurance Supervisors and Regulators’ today. It outlines supervisory and regulatory practices that can best support the UN Climate Change Conference (COP26) objectives for private finance reporting.
The paper highlights the improvements in the quantity, quality and comparability of climate-related disclosures observed through the implementation of the Taskforce for Climate-related Financial Disclosures (TCFD) recommendations.
The Sustainable Insurance Forum (SIF) is a global network of 33 insurance supervisors and regulators working together to strengthen responses to sustainability and climate change challenges facing the insurance sector. It provides a platform for international collaboration among supervisors, facilitating knowledge sharing, dialogue, and uptake of policy innovations. The SIF Secretariat, hosted by the UNDP, developed the paper with the support of SIF members.
The TCFD is a global industry-led initiative established in 2015 by the Financial Stability Board (FSB) to help identify the information needed by investors, lenders and insurance underwriters to appropriately assess and price climate-related risks and opportunities.
The paper, published as Finance Day takes place as part of COP26, supports members in answering some key questions including:
- What does mandating TCFD-aligned disclosures mean for regulators and supervisors?
- How are other jurisdictions implementing these requirements?
- What other international developments, such as the IFRS Foundation international sustainability standards, might support future disclosures?
The SIF paper condenses the learnings from a SIF survey focused on the current practices of SIF members in implementing the TCFD recommendations in their own jurisdictions, including using the information available in supervisory activities.
Case studies from SIF members provide more detailed insights into the ways in which supervisors and regulators are encouraging voluntary TCFD-aligned disclosures and mandating requirements for such disclosures.
The SIF has recognized the TCFD recommendations as the preeminent disclosure framework for climate-related risks. The Task Force has over 2,600 supporters globally, including 1,069 financial institutions, responsible for assets of US$ 194 trillion. TCFD supporters now span 89 countries and jurisdictions and nearly all sectors of the economy, with a company combined market capitalization of over US$25 trillion – a 90 percent increase since 2020.
More than 120 regulators and governmental entities officially support the TCFD, including the national governments of Canada, Chile, Denmark, France, Japan, New Zealand, Norway, the Republic of Korea, the Republic of Ireland, Sweden, Switzerland and the United Kingdom of Great Britain and Northern Ireland.
NOTES:
The UNDP Sustainable Insurance Forum (SIF)
Established by the United Nations with the support of the International Association of Insurance Supervisors (IAIS), the Sustainable Insurance Forum (SIF) is a global network of 33 insurance supervisors and regulators working together to strengthen responses to sustainability and climate change challenges facing the insurance sector. Launched in December 2016, the SIF provides a platform for international collaboration among supervisors, facilitating knowledge sharing, dialogue, and uptake of policy innovations. The SIF is hosted by the United Nations Development Programme (UNDP).
More information on the SIF is available at: www.sustainableinsuranceforum.org or from: Ms. Sarah Zaidi, SIF Coordination and Networking Manager sarah.zaidi@undp.org.
