The state commercial lender Bank of Communications Co. Ltd. recently became the sixth and last Chinese bank to support the Task Force on Climate-Related Financial Disclosures (TCFD), a global initiative to develop recommendations for companies to disclose the risks and opportunities associated with climate change.
This decision illustrates the growing popularity of the task force among Chinese companies, which are paying increasing attention to sustainable development.
The TCFD was created in 2015 by the Financial Stability Board (FSB), an international body that monitors and makes recommendations on the global financial system. In June 2017, the working group published final recommendations for businesses, paving the way for businesses around the world to participate in the initiative and disclose climate-related information. Several jurisdictions around the world, including Japan and Singapore, have announced requirements for national organizations to report in accordance with TCFD recommendations, according to the task force. last situation report.
Since October, the TCFD has more than 2,600 supporters, including businesses, governments and central banks, from 89 countries and jurisdictions. Supporters are encouraged, but not obligated, to implement its financial disclosure recommendations.
A total of 26 Chinese companies are currently supporting the task force, of which nearly two-thirds are from the financial sector and six are banks.
In 2017, Industrial and Commercial Bank of China Ltd. became the first Chinese financial institution to support the task force. The only other Chinese company to sign up that year was Jinko Solar Co. Ltd., one of the world’s leading solar panel manufacturers. In total, eight Chinese companies became his supporters between 2018 and 2020.
Momentum picked up this year, as 16 Chinese companies, including five banks, became new supporters. The five are Bank of China Ltd., China Construction Bank Corp., Postal Savings Bank of China Co. Ltd., Huaxia Bank Co. Ltd. and Bank of Communications.
In addition to supporting TCFD recommendations, the six Chinese banks also issue green loans and bonds as part of efforts to promote sustainable development.
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