In brief: Asset owners’ TCFD reporting inhibited by private markets data challenges

Private companies’ carbon footprint data challenges are the main barrier for asset owners providing climate impact disclosures as recommended by the Taskforce on Climate-Related Financial Disclosures.

The TCFD has surveyed 150 asset owners and asset managers about their experiences completing TCFD-recommended disclosures. Among the respondents, 50 percent of asset owners and 80 percent of asset managers reported in line with at least one of the TCFD-recommended disclosures – which are voluntary in most jurisdictions and apply to portfolios as a whole, including public and private markets investments.

Eighty-four percent of asset owners said insufficient availability of emissions information for private markets investments was a barrier to them completing TCFD-recommended disclosures across their portfolios, making this the most common challenge. For asset managers, however, public markets present a challenge more often: 62 percent said insufficient information in public markets was a barrier to completing TCFD disclosures, while only 42 percent attributed the problem to private markets.