Following COP23, the PRI has published new voluntary climate-related indicators in its Reporting Framework aligned with the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations.
As of the 2018 reporting cycle, signatories will be able to voluntarily report and disclose on 14 new indicators and six original indicators which have been updated following TCFD recommendations.
Pilot reporting against the new indicators will help signatories inform climate strategy and investment practices; align with TCFD recommendations; demonstrate climate reporting gaps; and implement emerging industry best practice. Reporting responses will be available in a climate transparency report which can be used both internally and externally, with asset owner-manager and peer exchange. The PRI will support signatories who report on the indicators by releasing guidance in January 2018.
The indicators will be included in the strategy and governance module in the pilot year; this will extend to asset class modules in 2019, where appropriate.
“The material risks around climate change remain the number one concern for our signatories, which is why we have made this issue a priority,” said PRI Managing Director, Fiona Reynolds.
The purpose of the TCFD was to develop a set of recommendations that outlined consistent and reliable disclosures on climate-related financial risks, consequently providing investors, lenders, insurers and other stakeholders with information necessary to manage these risks and opportunities.
PRI signatories already report increased activity on climate and EAPF and Aviva Investors have already committed to pilot the new climate indicators.