Financial institutions will be asked to include much more detailed information about climate-related risks in their financial reports, following the release of a set of disclosure standards by the Task Force on Climate-related Financial Disclosures.The TCFD's recommendations cover governance, strategy and risk management reporting standards and have been designed for implementation over a five-year period.The TCFD was formed by the Financial Stability Board in 2015, after the G20 finance ministers asked the FSB to review how the financial sector could take account of climate-related issues. The FSB identified the need for better information to improve understanding and analysis of climate related risks and opportunities and to support informed investment, lending and insurance underwriting decisions.The FSB established the TCFD at the end of 2015, under the leadership of former New York mayor Michael Bloomberg, calling on it to develop disclosures that could promote the G20's goals. The TCFD published its recommendations last week, saying: "It has been difficult for investors to know which companies are most vulnerable to climate change, which are best prepared and which are taking action."The FSB set up the task force because it believes that without effective disclosure of the risk, the financial impacts of climate change may not be correctly priced, and as the costs eventually become clear the potential for rapid adjustments could have destabilising effects on markets."Financial policymakers are interested in the implications for the global financial system."The TCFD finalised its recommendations, which are voluntary, after more than 2000 consultation session in 32 countries, including Australia and New Zealand.Recommended disclosures are under four headings - governance, strategy, risk management and metrics.Governance: Describe the board's oversight of climate-related risks and opportunities; and describe management's role in assessing and managing climate related risks and opportunities.Do the board and board committees consider climate-related issues when reviewing and guiding strategy? Has the board assigned climate-related responsibilities at management level?Strategy:  Describe the climate-related risk and opportunities the organisation has identified over the short, medium and long term; describe the impact of climate-related risks and opportunities on the organisation's business, strategy and financial planning; and describe the potential impact of different scenarios.Business impacts should cover products and services, value chain, adaptation and mitigation activities and investment in research and development.Risk management: Describe the organisation's processes for identifying and assessing climate-related risks; describe the organisation's processes for managing climate-related risks; and describe how these processes are integrated into the organisation's overall risk management.Organisations should consider disclosing the definitions and risk terminology they use.Metrics and targets: disclose the metrics used by the organisation to assess climate-related risks and opportunities; describe greenhouse gas emissions.Where relevant, organisations should provide their internal carbon prices. Metrics should be provided for historical periods to allow for trend analysis.