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24 May 2021

City of London Corporation: Data, Direction, Dialogue

Climate change is a global problem requiring global action. With the world turning its attention to climate action in the runup to COP26, and President Biden’s election bringing the US back to the centre of this debate, the UK and US have an opportunity to collaborate on this vital agenda.

Against this background, the City of London Corporation published a report on trans-Atlantic cooperation in climate-related financial services regulation, "Data, Direction, Dialogue: Opportunities for UK-US Collaboration in Climate-related Financial Services Regulation”.

This paper argues that the UK and the US should collaborate to establish high-quality science-based data as a foundation for standardised disclosure frameworks which include comparable metrics and risk assessment mechanisms. This should be underpinned by international dialogue led by the UK and the US in the development of globally consistent standards based on existing structures.

  • Firms must be able to report and store data in an accessible
    format. In the US this could be done through the Electronic
    Data Gathering, Analysis, and Retrieval mechanism (EDGAR)
    mechanism. The UK should look to emulate this and the EU’s ESAP
    when developing its own structures.

  • 1.2 Standardisation of climate-related frameworks
    • Data must be standardised both in collection and reporting.
    Standardisation creates comparable data sets and allows
    regulators to gain a full ecosystem view.
    • Metrics, frameworks, and other benchmarks must be developed
    in collaboration. Regulators must coordinate with each other and
    industry when developing these frameworks.
    • When developing standardised metrics, risk assessments, and
    other frameworks regulators must work to consider and include
    transition implications.
    • Disclosures must include these standardised metrics, risk
    assessments, and other frameworks. This includes in any future
    TCFD-based disclosures.
    • Disclosures should avoid being duplicative. Policymakers in the UK
    and the US should work to establish deference mechanisms.

Full report

City of London

© City of London

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