China-UK TCFD Pilot Group

The City of London Green Finance Initiative, China Green Finance Committee and the Principles for Responsible Investment (PRI) have established a new private group of UK and Chinese financial institutions to pilot TCFD reporting in 2018.

This is the first TCFD pilot for China and will inform the direction of China’s environmental disclosure guidelines, enabling China-UK exchange on effective implementation of TCFD.

Over 400 investors (US$22 trillion) have called on the G20 to support TCFD. Over 230 organizations have expressed their support for TCFD as of December 12, 2017, the two-year anniversary of the Paris Agreement, the creation of the TCFD and the date of the One Planet Summit.

The private group comprises ten financial institutions including several PRI signatories: Aviva, HSBC Hermes, Brunel, E-Fund, HuaXia (China Asset Mangaement), ICBC and Industrial Bank. The Peoples Bank of China and the Bank of England will provide input to the group.

PRI will co-ordinate investors participating in this pilot and share its expertise on global good practice. PRI has contributed actively to TCFD, with the PRI’s Chair and several signatories serving on the FSB Task Force. PRI’s global investor work programme includes encouraging regulators and stock exchanges to endorse TCFD; companies to adopt TCFD and investor reporting based on TCFD.

The pilot has been endorsed by both government at the UK – China Economic and Financial Dialogue, a high-level bilateral platform between the Chinese Vice-Premier Ma Kai and British Chancellor Philip Hammond and, in Beijing on Saturday.

Sir Roger Gifford, Chair of the City of London’s Green Finance Initiative said:

“The formation of this group is good news, both for the development of climate-related financial risk disclosure and for the rapidly growing UK-China relationship in green finance. The list of financial organisations involved is also impressive, and I’m confident, with the leadership of the People’s Bank of China and the Bank of England, that the group will go a considerable way to helping advance implementation of TCFD recommendations.”

Fiona Reynolds, Managing Director, PRI said:

“For investors, TCFD is a gamechanger, translating climate change into financial language. PRI is supporting investors worldwide in implementing TCFD. This new China-UK pilot will help advance TCFD implementation, drawing on the diverse perspectives of Chinese and UK financial institutions, and leadership of the Peoples Bank of China and Bank of England.”