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Asset managers must improve their financial reporting on climate issues, according to the latest report from the Task Force on Climate-related Financial Disclosures (TCFD).

In its report, the global task force said reporting by asset managers to their clients “may not be sufficient and that more progress may be needed to ensure clients and beneficiaries have the right information to make financial decisions.”

Created by the Financial Stability Board (FSB), the TCFD published voluntary climate-related financial disclosure guidelines in 2017. These disclosures were meant to provide information about companies to lenders, insurers, investors and other stakeholders.

The report noted that almost 60% of the 100 largest public companies in the world either support the TCFD, report in line with its recommendations, or both. The task force also notes growing support for its recommendations among companies more generally.

“The report shows that there has been significant momentum around adoption of and support for the TCFD’s recommendations, while also highlighting and making proposals to address challenges to more consistent and robust implementation,” said Randal Quarles, chair of the Financial Stability Board (FSB) and vice chair of the U.S. Federal Reserve Board, in a release.

Despite this trend, however, the TCFD says “companies’ disclosure of the potential financial impact of climate change on their businesses and strategies remains low.”

Energy companies, and firms in the materials and buildings sectors are leading on climate disclosure, the report noted.

Alongside its latest status report, the TCFD also published guidance on climate-related scenario analysis, and on integrating climate-related risks into existing risk management processes.

The task force also launched a public consultation on forward-looking climate metrics for financial firms, which is set to run until Jan. 27, 2021.