Task Force on Climate-Related Financial Disclosures
  • About
  • Recommendations
  • Publications
  • Support TCFD
    • Press Releases
    • Media Coverage
  • Knowledge Hub
Knowledge Hub MenuClose Menu
  • Knowledge Hub Home
  • Resources
    • Resource database
    • Case Studies
    • Report Database
  • Getting Started
    • Introduction
    • Governance
    • Strategy
    • Risk Management
    • Metrics and Targets
    • Scenario Analysis
    • FAQs
  • Educational Resources
    • Online courses
    • Climate Risk Card Game
    • Downloadable Training Pack
  • TCFD 建议

TCFD Knowledge Hub

 Back to Resources
Article name & author

Cheap Talk and Cherry-Picking: What ClimateBert has to say on Corporate Climate Risk Disclosures

Author: Julia Anna Bingler, Mathias Kraus, Markus Leippold

Research / Insights - 2021
Disclosure of climate-related financial risks greatly helps investors assess companies' preparedness for climate change. Voluntary disclosures such as those based on the recommendations of the Task Force for Climate-related Financial Disclosures (TCFD) are being hailed as an effective measure for better climate risk management. We ask whether this expectation is justified. We do so with the help of a deep neural language model, which we christen ClimateBert. We train ClimateBert on thousands of sentences related to climate-risk disclosures aligned with the TCFD recommendations. In analyzing the disclosures of TCFD-supporting firms, ClimateBert comes to the sobering conclusion that the firms' TCFD support is mostly cheap talk and that firms cherry-pick to report primarily non-material climate risk information. From our analysis, we conclude that the only way out of this dilemma is to turn voluntary reporting into regulatory disclosures.
 Was this resource useful?
Keywords: Climate-related risk, Disclosure/reporting, Financial impacts, Materiality, Metrics/indicators, Scenario analysis
GO TO RESOURCE
Loading...
Report a Problem
Case Study

Powered by:

CDP Logo

This site is operated by CDP.

  • About the Hub
  • FAQ
  • Terms & Conditions
  • Privacy Policy
  • Cookie Policy

Contact Us

[email protected]

Newsletter

To receive updates about the platform and its launch, sign up to the newsletter

SUBSCRIBE

The newsletter is operated by CDP*

*CDP Worldwide, registered charity number 1122330, a company limited by guarantee 05013650, headquartered at CDP Worldwide, 60 Great Tower Street, London EC3R 5AZ, United Kingdom. CDP Worldwide is regulated by the Charity Commission.