Follow Us

Follow us on Twitter  Follow us on LinkedIn
 

23 April 2019

Investment & Pensions Europe: Climate risk: Central banks call for action on disclosure, taxonomies


An international group of central banks and financial supervisors has called for a global standardised framework on climate disclosures, urging action from policymakers or supervisory authorities.

It threw its weight behind the work of the Task Force on Climate-related Financial Disclosures (TCFD), saying its recommendations were “an obvious avenue of convergence” for such a framework and that its members collectively backed them.

In a new report, the group said the lack of a global standardised framework on climate disclosures impeded “the proper and global consistent assessment of climate risks at a firm level as well as the analysis of financial stability risks”.

Although there was “a significant level of awareness” of the TCFD recommendations and growing support from the private sector, intervention from policymakers or supervisors was necessary.

“The NGFS considers that disclosure of climate-related information and enhanced market discipline cannot emerge rapidly enough without action by policymakers or supervisory authorities,” it said.

Launched in December 2017, the Network for Greening the Financial System (NGFS) has grown rapidly and at present brings together 36 central banks and supervisors from across five continents. It represents two-thirds of global systemically important banks and insurers.

The call for action on a disclosure framework is one of six recommendations it discussed last week during a members’ plenary and a conference.

Frank Elderson, an executive director of supervision at the Dutch central bank and chairman of the NGFS, said: “The financial risks we face through climate change are analytically difficult, unprecedented and yet very urgent. By issuing these recommendations, the NGFS members demonstrate collective leadership that will result in action to foster a greener financial system across countries and continents.”

Full article



© IPE International Publishers Ltd.


< Next Previous >
Key
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information



Add new comment