“JetBlue supports the Task Force’s cutting-edge recommendations for our long-term environmental and business planning,” said James Hnat, executive vice president, general counsel, JetBlue. “We must look beyond quarter-to-quarter when it comes to climate risk. Environmental social governance issues further tie sustainability to our bottom-line and strategy. Good climate governance is important to the success of our industry. In order to plan for the future of our business we must look at the true financial impact of climate change.”
The Task Force, established by the Financial Standards Board(FSB) in late 2015, recently released its final report – Recommendations of the Task Force on Climate-related Financial Disclosures – and supporting materials. Recommendations are focused on four areas that represent how companies operate: governance, strategy, risk management, and metrics and targets. These areas reflect the types of information investors expressed are most important to their needs. The Task Force developed guidance to assist companies in meeting those needs.
The Financial Standards Board, an independent organization that establishes financial accounting and reporting standards, crafted these recommendations. Always focused on smart business and transparency, JetBlue already reports along these lines, covering an estimated 80% of their new recommendations. As such, the Financial Standards Board has asked JetBlue to be among the first 100 companies, and the first airline, to assess the materiality of climate risk.
Earlier this year, JetBlue reported material ESG information of interest to investors with a white paper reportproduced according to the Sustainability Accounting Standards Board (SASB) standard for the airline industry. As one of the first companies and the first airline to report according to SASB’s intensive standards, JetBlue is not relying on the status quo for sustainability reporting.
Michael Bloomberg, Chair of the Task Force commented "Climate change presents global markets with risks and opportunities that cannot be ignored, which is why a framework around climate-related disclosures is so important. The Task Force brings that framework to the table, helping investors evaluate the potential risks and rewards of a transition to a lower carbon economy. We're pleased to see so many businesses and investors around the world support the recommendations of the TCFD and hope others will be encouraged to join our initiative."
In February this year, the FSB asked the TCFD to continue its work until September 2018. With the publication of its final report, the Task Force is focused on promoting and monitoring adoption of the recommendations going forward. The final report will be presented at the July G20 Summit in Hamburg, Germany by FSB Chair and Bank of EnglandGovernor Mark Carney. The final version of the report is available here and a summary of significant changes and clarifications since the draft report can be found here. The full list of CEOs supporting the work of the Task Force is viewable here.