The proposed changes would see the world’s largest economies implement mandatory climate-related risk reporting for companies against a standardised set of principles.
The
UK investment management industry is calling on the G7 countries to do
more to tackle climate change by committing to improve companies’
reporting on the climate-related risks they face.
The proposed changes would see the world’s largest economies
implement mandatory climate-related risk reporting for companies against
a standardised set of principles. With UK investment managers investing
£3.7trn in overseas equities, governments and non-sterling bonds, it is
vital that such risks are reported in a clear and consistent manner, so
managers can help companies transition to a more sustainable future and
take informed investment decisions on behalf of savers.
In a letter sent to the UK ambassadors and High Commissioners of the
countries taking part in this year’s G7 Summit, the Investment
Association (IA), which represents the UK’s £8.5 trillion investment
management industry, outlined the following measures it wants G7
countries to agree to at the upcoming summit:
- Support for the IFRS’ Sustainability Standards Board to work at
pace to develop sustainability reporting standards and increased
cooperation between national regulators to endorse and implement these
standards.
- For national regulators to commit to implementing mandatory
economy-wide reporting on international Task Force on Climate-related
Financial Disclosures (TCFD).
- International common standards to be agreed on green gilts by governments and national regulators.
- Governments to set out at a high level sector specific pathways to
meet the Paris Agreement goals and prioritise providing further detail
to reduce the risk of stranded assets.
Chris Cummings, Chief Executive of the Investment Association said: “The
meeting of the G7 is a prime opportunity for the world’s largest
economies to take a coordinated, global approach to tackling climate
change. As an industry which invests in companies around the world on
behalf of both UK and overseas savers and investors, investment managers
have a vital role to play in the shift to a more sustainable global
economy. Ensuring high-quality and comparable data on the risks that
companies face from climate change is key to achieving this and meeting
the net zero targets.”
As part of its commitment to tackling climate change, the IA has also publicly stated its support for the Race to Zero and Net Zero Asset Managers initiative. To date, investment managers with more than £5trn of assets under management in the UK have made these net zero commitments.
To view the letter click here.
IA
© Investment Association
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article