Skip to main content
logo
Financial Professional Login
Welcome
Log in for exclusive access and a personalised experience
Log in Sign up
Benefits of creating a free account
  • Customise Guide to the Markets to create a version with your favourite slides
  • Utilise our adviser-only Digital Portfolio Insights tool
  • Unlock expert commentary from Michael Cembalest and access our annual Long-Term Capital Market Assumptions
Hello
  • My Collections
    View saved content and presentation slides
  • Portfolio Analysis
  • Funds
    Overview

    Fund Listing

    • Mutual Funds
    • ETFs
    • ETF Range
    • How to Invest

    Capabilities

    • Alternatives
    • Equities
    • Fixed Income
    • ETF Investing

    In Focus

    • Investing for Income
    • Investing for Fixed Income
    • Investing for Growth
    • Investing for Sustainability
    • Investing for Alternatives
  • Insights
    Overview

    Market Insights

    • Market Insights Overview
    • Guide to the Markets
    • Guide to Alternatives
    • Guide to Investing in Asia
    • Weekly Market Recap
    • On the Minds of Investors
    • Podcasts
    • U.S. Policy Pulse Hub
    • Solving for Fixed Income
    • Eye on the Market

    Portfolio Insights

    • Portfolio Insights Overview
    • Guide to ETFs
    • Global Asset Allocation Views
    • Global Equity Views
    • Global Fixed Income Views
    • Sustainable Investing
    • Alternatives Insights
    • Long-Term Capital Market Assumptions
  • Investment Ideas
    Overview
    • Latest ideas
    • Alternatives Outlook
    • Sustainable investing
  • Resources
    Overview
    • Multimedia
    • Insights App
    • Digital Portfolio Insights
    • Announcements
  • About Us
    Overview
    • Awards
    • Diversity, Opportunity and Inclusion
    • Spectrum: Our Investment Platform
    • Our Leadership Team
  • Contact Us
  • Role
  • Country
Hello
  • My Collections
    View saved content and presentation slides
  • Portfolio Analysis
  • Log out
Financial Professional Login
Welcome
Log in for exclusive access and a personalised experience
Log in Sign up
Benefits of creating a free account
  • Customise Guide to the Markets to create a version with your favourite slides
  • Utilise our adviser-only Digital Portfolio Insights tool
  • Unlock expert commentary from Michael Cembalest and access our annual Long-Term Capital Market Assumptions
Log out
Search
Menu
Search
You are about to leave the site Close
J.P. Morgan Asset Management’s website and/or mobile terms, privacy and security policies don't apply to the site or app you're about to visit. Please review its terms, privacy and security policies to see how they apply to you. J.P. Morgan Asset Management isn’t responsible for (and doesn't provide) any products, services or content at this third-party site or app, except for products and services that explicitly carry the J.P. Morgan Asset Management name.
CONTINUE Go Back
    1. Home
    2. Insights
  1. Investment Ideas
  2. Sustainable investing

Task Force on Climate-related Financial Disclosures (TCFD)

Recognising the systemic risk from climate change, the Financial Stability Board in 2015 created the Task Force on Climate-related Financial Disclosures (TCFD) to improve and increase reporting of climate-related financial information. The TCFD has developed a framework and recommendations for companies to help them appropriately assess and price risks and opportunities related to climate change.

Explaining the Task Force for Climate-related Financial Disclosure recommendations

Global regulators and other stakeholders are working to improve the quality and availability of climate-related financial information. The Financial Stability Board1 (FSB)’s Task Force on Climate-related Financial Disclosures (TCFD), created in 2015, has led to one of the most significant efforts to enhance climate-related information in financial disclosures.

The TCFD has issued several climate-related disclosure recommendations that are designed to help public companies and other organisations disclose more effectively climate-related risks and opportunities through their existing reporting processes. These guidelines were first released in June 20172 and were updated and re-issued in October 20213.

The FSB created the TCFD to develop consistent climate-related financial risk disclosures. The TCFD recommendations are climate- related financial disclosures structured across four key areas that represent foundational elements of how organisations operate: governance, strategy, risk management, and metrics and targets (“TCFD Recommendations”).

explaining-tcfd

Source: Recommendations of the Task Force on Climate-related Financial Disclosures Final Report, June 2017.

https://assets.bbhub.io/company/sites/60/2021/10/FINAL-2017-TCFD-Report.pdf

The TCFD suggests that all financial and non-financial organizations with public debt or equity implement its recommended disclosures in their public annual financial filings.

The TCFD also encourages asset managers and asset owners, including public- and private-sector pension plans, endowments, and foundations, to implement the disclosure recommendations, report them to their beneficiaries and clients through existing means of financial reporting, when possible, and disclose publicly via their websites or other public avenues of disclosure.

In 2022, certain regulators in Asia-Pacific (APAC) such as those in Hong Kong and Singapore made disclosures on how climate- related risks are managed mandatory for asset managers.

J.P. Morgan Asset Management (“JPMAM”) has decided the best way to report on climate-related topics, including, where relevant, to meet climate-related disclosure requirements applicable to different legal entities of JPMAM, is to adopt a globally consistent approach, and to address any specific local requirements via local addendums.

In 2019, JPMorgan Chase & Co. (“JPMC”) published its first TCFD report. Since 2022, we have produced a TCFD report specific to J.P. Morgan Asset Management, on an annual basis, to continue in our journey towards providing more transparency and disclosure on climate-related matters.

Climate-related disclosures may comprise of voluntary disclosures made by financial market participants or companies to mandatory disclosure and reporting requirements at a legal entity and financial product level, as applicable. While the implementation of these disclosures is still evolving, we believe the result will be an increase in the quality and availability of information and transparency, benefiting clients, our portfolios and the broader financial services ecosystem.

While we believe that our clients will ultimately benefit from greater climate-related disclosures, the impact may vary. For example, institutional asset owners may be more likely to find the disclosures more immediately useful as they may be working to establish or improve their own frameworks to assess climate-related risks and opportunities or define sustainability goals, which may involve climate-related aspects, such to explore ways to lower their carbon footprint or seek to capitalize on the transition to a lower-carbon economy.

Some of the investee companies in our portfolios may begin to disclose in line with the TCFD recommendations, which will provide our portfolio managers with more detailed information, among others, when considering candidates for a portfolio. Improved climate-related disclosures may also help with our climate-related engagement efforts with investee companies.

Additional readings

  1. The FSB promotes international financial stability; it does so by coordinating national financial authorities and international standard-setting bodies as they work toward developing strong regulatory, supervisory and other financial sector policies. It fosters a level playing field by encouraging coherent implementation of these policies across sectors and jurisdictions.
  2. Recommendations of the Task Force on Climate-related Financial Disclosures Final Report, June 2017.
    https://assets.bbhub.io/company/sites/60/2021/10/FINAL-2017-TCFD-Report.pdf
  3. Implementing the Recommendations of the Task Force on Climate-related Financial Disclosures, October 2021.
    https://assets.bbhub.io/company/sites/60/2021/07/2021-TCFD-Implementing_Guidance.pdf
     

Provided for information only, not to be construed as offer, research, investment recommendation or advice. Forecasts, projections and other forward looking statements are based upon current beliefs and expectations, may or may not come to pass. They are for illustrative purposes only and serve as an indication of what may occur. Given the inherent uncertainties and risks associated with forecast, projections or other forward statements, actual events, results or performance may differ materially from those reflected or contemplated.

Investments involve risks. This includes illustrations of macro trends which may or may not come to pass. Investors should seek professional advice before investing.

Diversification does not guarantee investment return and does not eliminate the risk of loss.

© All Rights Reserved - JPMorgan Asset Management (Australia) Limited ABN 55 143 832 080, AFSL No. 376919

All investments contain risk and may lose value. The information provided on this article is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information having regard to your objectives, financial situation and needs. Before making any decision, it is important for you to consider the appropriateness of the information and seek appropriate legal, tax, and other professional advice. Prior to making an investment decision, investors should read the relevant Product Disclosure Statement and Target Market Determination, which have been issued by Perpetual Trust Services Limited, ABN 48 000 142 049, AFSL 236648, as the responsible entity of the fund available on https://am.jpmorgan.com/au.

JPMorgan Asset Management

  • Terms & Conditions
  • Financial Services Guide
  • Privacy Policy
  • Cookie Policy
  • Investment Stewardship
  • Voting Policy
  • Unit Pricing Policy
  • Complaint Resolution
  • Sitemap
J.P. Morgan

  • J.P. Morgan
  • JPMorgan Chase
  • Chase

Please note:  Following recent amendments to the Corporations Act, where unitholders have provided us with your email address, we will now send notices of meetings, other meeting-related documents and annual financial reports electronically unless the unitholder elects to receive these in physical form and notify us of this election. Unitholders have the right to elect whether to receive some or all of such Communications in electronic or physical form, the right to elect not to receive annual financial reports at all and the right to elect to receive a single specified Communication on an ad hoc basis, in an electronic or physical form.


 

All investments contain risk and may lose value. This advertisement has been prepared and issued by JPMorgan Asset Management (Australia) Limited (ABN 55 143 832 080) (AFSL No. 376919) being the investment manager of the fund. It is for general information only, without taking into account your objectives, financial situation or needs and does not constitute personal financial advice. Before making any decision, it is important for investors to consider the appropriateness of the information and seek appropriate legal, tax, and other professional advice. For more detailed information relating to the risks of the Fund, the type of customer (target market) it has been designed for and any distribution conditions please refer to the relevant Product Disclosure Statement and Target Market Determination which have been issued by Perpetual Trust Services Limited, ABN 48 000 142 049, AFSL 236648, as the responsible entity of the fund available on https://am.jpmorgan.com/au.