We need to work on a united, collaborative response when it comes to combating climate change, said Zurich Insurance’s Cecilia Reyes in a recent blog, expanding on her Dec. 15 Twitter chat on environmental risks.

In the blog entry, Zurich’s chief risk officer shared her thoughts on the recommendations put forward by the G20’s Taskforce on Climate-related Financial Disclosures (TCFD).

Reyes noted that the primary objective of the TCFD recommendations is to draw a closer connection between financial and environmental arguments for climate change measures, emphasizing the link between long-term business interests and environmental priorities.

The recommendations cover governance, strategy, risk management and measurements (specifically metrics and targets), a framework Reyes said is a great starting point to deliver the increased transparency needed for investor scrutiny and shareholder pressure to shape business responses to climate-related risks.

Reyes highlighted what she believes are the most important aspects of the TCFD recommendations:

• The call for full disclosure and increased transparency will help investors price in companies’ risk exposure and management structures, including corporate responses to carbon-intensive business practices.
• The inclusion of climate-related financial disclosures in standard public filings will provide markets with more information to assess material risk (including climate risks) and price accordingly.
• Increased transparency and greater disclosure will empower both shareholders and potential investors.

See Reyes’ full Dec. 23 blog: “How financial disclosure can shape our climate change response.”