Bank of England governor Mark Carney has said an integrated approach to non-financial reporting will allow companies to think about longer-term value creation as well as managing climate risk.

In an interview with CPA Canada president and CEO Joy Thomas on defining the success of the Task Force on Climate-related financial Disclosures (TCFD), which he created, Carney commented that by looking at the risks that are created due to climate change, opportunities will present themselves which will make for an effective transition in to a low carbon world.

He noted that these opportunities may come in different areas, such as in the form of data or AI

Carney, as the chair of the Financial Stability Board, was asked by the G20 to create the TCFD to develop a set of voluntary disclosures to help establish greater reporting consistency on climate change issues.

In the interview, Carney commented that while it is up to the TCFD to set the disclosures, it will be down to the professionals of the accountancy industry and their clients to determine “which of the disclosures work, which ones could be improved, which should be trimmed back, which should be expanded”.

In regards to energy transition, Carney said: “You don’t just need static disclosure—we do need it—but you also need that scenario analysis and a sense of how companies are managing their risks and their governance processes in order to do so.?

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“These are some very higher order types of disclosure and takes true judgment and that’s why having the support of the CPA and the professionals in the CPA is hugely important to make sure that this works.”

Defining the success of the TCFD, Carney noted that the TCFD is ipso facto a success due to its composition: “A solution of the private sector for the private sector.”