Asset managers are not reporting sufficiently on climate risks of the companies in their portfolios according to the Task Force on Climate-Related Financial Disclosures.

The Financial Stability Board’s TCFD said of asset managers, “reporting by these organisations to their clients and beneficiaries may not be sufficient and that more progress may be needed to ensure clients and beneficiaries have the right information to make financial decisions”. According to the TCFD, the responsibility of asset managers, “includes obtaining information from investee companies, and providing their clients and beneficiaries with decision-useful information”.

More than 1500 organisations support the TCFD’s recommendations, an increase of more than 85% since 2019.