Sarah Samuel, an energy expert at PA Consulting, is quoted in an article on the Task Force on Climate-related Financial Disclosure (TCFD) as policy-makers are hardening their stance on climate change reporting.
The TCFD initiative is currently voluntary and market-led, aims to remedy that by getting companies to report in clear and comparable terms on the future impact on their businesses of global warming.
Sarah explains that there are advantages to the voluntary route.
“Once something becomes a compliance issue then it can be, if not a box-ticking exercise, something you have to do to meet a minimum standard.”
She continues: “Some companies may choose to go beyond the statutory minimum for the reasons of virtue signalling or because it’s a core part of their brand. But there are downsides of the voluntary approach too – the companies who most need to engage may well be missed.”