Climate-related financial disclosures in the public sector

Expectations for the Task Force on Climate-related Financial Disclosure’s framework to drive climate action in the private sector are high, and there is growing interest in its relevance for guiding public sector climate action. However, consideration of the framework’s limitations is critical prior to public sector application.

Access options

Rent or Buy article

Get time limited or full article access on ReadCube.

from$8.99

All prices are NET prices.

Fig. 1: Prerequisites of TCFD catalysation of market discipline and internal management.

References

  1. 1.

    Phase 1 Report of the Task Force on Climate-Related Financial Disclosures (TCFD, 2016).

  2. 2.

    TCFD Supporters https://www.fsb-tcfd.org/tcfd-supporters/ (2020).

  3. 3.

    Lane, T. D. IMF Staff Pap. 40, 53–88 (1993).

    Article  Google Scholar 

  4. 4.

    Crockett, A. J. Bank. Financ. 26, 977–987 (2002).

    Article  Google Scholar 

  5. 5.

    Jackson, G., Bartosch, J., Avetisyan, E., Kinderman, D. & Knudsen, J. S. J. Bus. Ethics 162, 323–342 (2020).

    Article  Google Scholar 

  6. 6.

    García‐Sánchez, I. M., Hussain, N., Martínez‐Ferrero, J. & Ruiz‐Barbadillo, E. Corp. Soc. 26, 832–848 (2019).

    Google Scholar 

  7. 7.

    Guthrie, J. & Farneti, F. Public Money Manag. 28, 361–366 (2008).

    Article  Google Scholar 

  8. 8.

    Discussion Paper 2019/01 – The Climate Reporting Emergency: A New Zealand Case Study (The McGuinness Institute, 2019).

  9. 9.

    Godden, L. et al. UNSWLJ 36, 224–255 (2013).

    Google Scholar 

  10. 10.

    Adams, C. A., Muir, S. & Hoque, Z. Sustain. Account. Manag. Policy J. 5, 46–67 (2014).

    Article  Google Scholar 

  11. 11.

    Biesbroek, R., Lesnikowski, A., Ford, J. D., Berrang‐Ford, L. & Vink, M. Rev. Policy Res. 35, 881–906 (2018).

    Article  Google Scholar 

  12. 12.

    Oates, G. & Moradi-Motlagh, A. Australas. J. Environ. Manag. 23, 194–205 (2016).

    Article  Google Scholar 

  13. 13.

    OECD Secretariat in Competitive Cities and Climate Change: OECD Conference Proceedings Ch. 1 (OECD, 2008).

  14. 14.

    Painter, M. J. Financ. Econ. 135, 468–482 (2020).

    Article  Google Scholar 

  15. 15.

    Rashidi, K., Stadelmann, M. & Patt, A. Energy Res. Soc. Sci. 48, 131–138 (2019).

    Article  Google Scholar 

  16. 16.

    Farbotko, C. Aust. Geogr. 50, 273–278 (2019).

    Article  Google Scholar 

  17. 17.

    Macintosh, A. & Wilkinson, D. J. Environ. Law 28, 65–93 (2015).

    Article  Google Scholar 

  18. 18.

    Dovers, S. R. & Hezri, A. A. Wiley Interdiscip. Rev. Clim. Change 1, 212–231 (2010).

    Article  Google Scholar 

  19. 19.

    Rickards, L., Wiseman, J. & Edwards, T. Environ. Plann. C 32, 641–662 (2014).

    Article  Google Scholar 

  20. 20.

    Ball, A., Grubnic, S. & Birchall, J. in Sustainability Accounting and Accountability (eds O’Dwyer, B. et al.) Ch. 11 (Routledge Taylor & Francis Group, 2014).

  21. 21.

    Christophers, B. Ann. Am. Assoc. Geogr. 107, 1108–1127 (2017).

    Google Scholar 

  22. 22.

    Naqvi, M., Burke, B., Hector, S., Jamison, T. & Dupré, S. All Swans are Black in the Dark: How the Short-term Focus of Financial Analysis does not Shed Light on Long Term Risks (2° Investing Initiative and the Generation Foundation, 2017).

  23. 23.

    Keenan, J. M. Science 365, 1240–1243 (2019).

    CAS  Article  Google Scholar 

  24. 24.

    Patten, D. M. & Shin, H. Sustain. Account. Manag. Policy J. 10, 26–40 (2019).

    Article  Google Scholar 

  25. 25.

    Liu, Z., Abhayawansa, S., Jubb, C. & Perera, L. Financial Account. Manag. 33, 264–283 (2017).

    CAS  Article  Google Scholar 

  26. 26.

    Tang, S. & Demeritt, D. Bus. Strategy Environ. 27, 437–455 (2018).

    Article  Google Scholar 

  27. 27.

    Andersen, M. & Skjoett-Larsen, T. Supply Chain Manage. 14, 75–86 (2009).

    Article  Google Scholar 

Download references

Acknowledgements

We thank the Queensland State Government for their financial support of this work.

Author information

Affiliations

Authors

Corresponding author

Correspondence to Ian Edwards.

Ethics declarations

Competing interests

K.Y. has contributed to this commentary in her own capacity, and any views expressed in this Comment are her own and not those of Ernst & Young. K.Y. is an employee of Ernst & Young who provides climate and sustainability services to public and private sector entities, including in relation to climate risk disclosure.

Rights and permissions

Reprints and Permissions

About this article

Verify currency and authenticity via CrossMark

Cite this article

Edwards, I., Yapp, K., Mackay, S. et al. Climate-related financial disclosures in the public sector. Nat. Clim. Chang. 10, 588–591 (2020). https://doi.org/10.1038/s41558-020-0785-1

Download citation