Insights

Climate Disclosure: A First Step Beyond the Tragedy of the Horizon

ㅣTaehan Kim, COO of KoSIFㅣ

In 2015, while serving as Governor of the Bank of England, Mark Carney—now Prime Minister of Canada—described the climate crisis as the “tragedy of the horizon.” The phrase refers to our tendency to focus on immediate costs while failing to account for future consequences.

The climate crisis, however, is no longer a distant threat. Record-breaking wildfires have devastated thousands of households, while typhoons and wildfires have caused trillions of won in corporate losses. Physical climate risks are already affecting the insurance sector, manufacturing, and global supply chains.

The financial sector has been among the most active in driving the systemic changes needed to respond to climate change.

Central banks and financial regulators around the world have begun taking more decisive action on climate-related financial risks. As part of this shift, mandatory corporate climate disclosure is expanding rapidly across major markets.

In this article, Taehan Kim, COO of the Korea Sustainability Investing Forum, examines the economic and financial impacts of climate change, the transformation taking place across the global financial system, and the key disclosure areas set out in the recommendations of the Task Force on Climate-related Financial Disclosures.

The climate crisis is not simply an environmental issue. It is an economic issue—and ultimately a matter of survival.

Companies and financial institutions must use climate scenario analysis to identify and disclose material risks and develop strategies to address them.

The full article is available at the link below.

Read the article