GreenKite proudly supports the Task Force on Climate-related Financial Disclosures (TCFD)

GreenKite is proud to announce our support for the Task Force on Climate-related Financial Disclosures (TCFD), joining a global network of over 4,000 organisations. Established in 2015 by G20 Finance Ministers and Central Bank Governors within the Financial Stability Board (FSB), the TCFD is committed to enhancing transparency in financial markets concerning climate-related risks and opportunities.

As the insurance sector refines its approach to ESG (Environmental, Social, and Governance) matters, climate change has become a primary focus due to the increasing risks associated with events like wildfires, floods, and hurricanes.

While ESG discussions involve different stakeholders, industry regulators, such as the PRA (Prudential Regulation Authority), have specifically focused on climate change. The PRA emphasises how UK insurers can demonstrate their commitment to monitoring and managing financial risk from climate change.

Access to reliable, consistent data is crucial to implement and defend these frameworks effectively. Although data availability remains a significant challenge, the TCFD’s mission is to expand the global disclosure of climate-related financial information. This enables investors, lenders, and insurers to:

• Assess climate-related risks to their organisation, suppliers, and competitors
• Make informed decisions about capital allocation
• Evaluate risks and exposures in the short, medium, and long term

Recognising these risks’ critical role in the insurance industry, GreenKite supports the need for a standardised framework to price climate-related risks. Since April 2022, the UK government has mandated the inclusion of a Non-Financial Information Statement based on TCFD reporting in the annual reports of banking, insurance, and listed companies with 500+ staff or a turnover of £500m+.

As a result, we actively support TCFD recommendations as an effective framework to increase transparency and consistency in climate-related risk information within the insurance industry and broader financial markets.

At GreenKite, we commit to creating a positive impact and promoting responsible business practices. We strive to align with our clients’ ESG priorities while building a resilient and responsible business that positively influences our industry. Publicly supporting TCFD is a key element of our responsible business objectives for 2023, contributing to our long-term responsible business goals.

We encourage insurance organisations to participate in supporting TCFD. Click on this link to find out more.