Progress in favor of TCFD
Along with the CAC 40 companies, Paris EUROPLACE and Finance for Tomorrow join the French Ministry of the Economy, Finance and Recovery, Euronext and the Autorité des Marchés Financiers in supporting the TCFD’s recommendations. Five years after the Paris Agreement, further endorsements of the TCFD underline progress towards climate-related financial disclosure. Paris, December 12, 2020 – The 40 largest companies listed in France on the CAC 40 index have lent their support to the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), thereby demonstrating their commitment to building a more resilient financial system and protecting against climate risk through better financial disclosures.Significant progress has been made in mainstreaming the recommendations: the number of executives who have lent their support to the TCFD has risen from just 100 in June 2017 to over 1,600 today, and almost 60% of the world’s 100 largest listed companies either support the TCFD or publish reports in line with the recommendations (or both). Finally, the number of endorsements of TCFD recommendations has increased by 85% over the past year.The declaration of support was signed by Bruno Le Maire (Minister of the Economy, Finance and Recovery) and Olivia Grégoire (Secretary of State for the Social, Solidarity and Responsible Economy), Augustin de Romanet (Chairman, Paris EUROPLACE), Thierry Déau (Chairman, Finance for Tomorrow), Stéphane Boujnah (CEO and Chairman of the Management Board, Euronext) and Robert Ophèle (Chairman, Autorité des Marchés Financiers). The announcement coincides with the fifth anniversary of the signing of the Paris Agreement, and was discussed at the One Planet Finance follow-up meeting organized by French President Emmanuel Macron. Support for the TCFD recommendations represented one of the twelve commitments made at the first One Planet Summit in 2017. On November 20, 2020, at the One Planet Sovereign Wealth Funds Summit, which brought together 33 CEOs of the world’s largest institutional investors with over $30 trillion in assets under management, CEOs of sovereign wealth funds and asset managers made statements of support to recognize the TCFD recommendations as a global reporting standard. This action came as leaders identified the lack of universal reporting standards as a systemic barrier. They recognized that a global commitment to the TCFD by the financial system would ensure efficiency and improve the allocation of capital to those companies that best manage climate-related risks and lead the transition. Augustin de Romanet, Chairman of Paris EUROPLACE, said: ‘ Paris EUROPLACE’s support for the TCFD principles reflects the Paris financial center’s commitment to environmental finance. Paris EUROPLACE, with its Finance for Tomorrow branch, wishes to accelerate the dialogue between companies and investors on these major issues, including on a European and international level ‘ Thierry Déau, Chairman of Finance for Tomorrow, commented that ‘The alignment of France’s leading CAC 40 companies and the support given today by the Paris financial center to the TCFD is a strong signal to go further in the fight against climate change. It will increase comparability between the various existing standards and create greater transparency on the risks and opportunities associated with climate change for the financial sector. Finance for Tomorrow and French market players are fully committed to making the TCFD a global movement. This is a crucial step to mobilize companies in building the transition and a potential competitive advantage for those aligned with the objectives of the Paris Agreement. ‘ Bruno Le maire, Minister of the Economy, Finance and Recovery stated that ‘ Back in 2017, I called on French companies to take up the recommendations established by the Task Force mandated by the G20. These recommendations, which are in line with the Paris Agreement, are simple but essential. They require companies to integrate climate issues into their governance and strategy. The official support of France’s major corporations for the recommendations of the Task Force on Climate-related Disclosures bears witness to their awareness of the climate-related implications for the sustainability of their business. They must continue to contribute to the dissemination of best practices and to getting the entire value chain on board towards the goal of carbon neutrality set by the President of the Republic. ‘ Olivia Grégoire, Secretary of State for the Social, Solidarity-based and Responsible Economy, declared that ‘Victor Hugo said that form is substance that rises to the surface. Publishing information on how we are taking climate issues into account means accepting to be judged on the concrete nature of our actions. Supporting the recommendations of the Task Force on Climate-related Financial Disclosures in itself reveals a willingness to better integrate the climate issue into the daily life and governance of companies. ‘ Robert Ophèle, Chairman of the Autorité des Marchés Financiers, commented that ‘This support for the TCFD’s recommendations is a further step towards integrating climate-related risks into corporate strategies and their communications with investors.’ Stéphane Boujnah, CEO and Chairman of Euronext, said, ‘Euronext is committed to accelerating the transition to sustainable finance and contributing to the financial stability of the countries in which we operate. This is a pillar of our strategic plan. As part of this strategy, Euronext supports the TCFD’s recommendations to ensure transparency on climate-related risks and take advantage of the opportunities this represents for financial markets.’ Michael R. Bloomberg, Chairman of the TCFD, stated that ‘ The TCFD’s recommendations are designed to increase transparency about the climate-related risks facing companies. This is both good for business and good for the environment. In both the public and private sectors, more and more companies, regulators and investors are recognizing their value – and we are delighted to now have the support of the CAC 40 companies. They are an inspiration to other indices in Europe and around the world. We look forward to rallying even more support and continuing to advance the TCFD’s recommendations as a global framework for climate risk reporting. ‘ The organizations supporting the TCFD come from 77 countries and represent a combined market capitalization of over $15 trillion, as well as more than 750 financial companies, managing over $155 trillion in assets. More than 110 regulators and government entities worldwide support the TCFD, including the governments of France, Belgium, Canada, Chile, Denmark, Ireland, Japan, New Zealand, Sweden and the U.K. The TCFD provides market participants with recommendations to address the financial impact of climate change on their activities. By providing greater transparency on climate-related risks and opportunities, the recommendations support more informed financial decision-making by investors, lenders and others. For more information about the Climate Disclosure Task Force, please visit.