Global regulators back plan for climate risk disclosures body – Reuters

[1/2] Ashley Ian Alder, Chief Executive Officer of Securities and Futures Commission and Chairman of the Board of International Organization of Securities Commissions, attends the Asian Financial Forum in Hong Kong, China January 15, 2018. REUTERS/Bobby Yip
LONDON, Feb 11 (Reuters) – Global market regulators have thrown their weight behind plans for a new international standards body for company disclosures on climate risks and sustainability, saying it would cut the scope for so-called greenwashing.
The current patchwork of voluntary public and private initiatives for disclosures have at times given misleading and inconsistent information to investors, said Ashley Alder, chair of the International Organization of Securities Commissions or IOSCO.
"This can lead to cherry picking and shopping around for reporting standards in ratings… this makes greenwashing obviously easier," Alder told a City & Financial conference.
Greenwashing refers to companies painting a more flattering picture of sustainability.
Alder said a stronger global effort is needed and the commitment of U.S. President Joe Biden to tackling climate change will help.
The London-based IFRS Foundation, which writes accounting rules for over 140 countries, will propose a similar body for writing climate disclosures standards in September.
"It would build on the IFRS' proven standard setting process for financial accounting which rests on a rigorous governance structure to ensure public accountability and widspread acceptance," said Alder, who also heads Hong Kong's markets watchdog.
"It addresses head on the problem of noise resulting from a multiplicity of private sector standards addressing the same market," he said.
The European Union and China aim to issue a "common ground" taxonomy or definition of "green" and sustainable investments.
"This could be the largest single climate finance market," Alder said.
IOSCO, which groups regulators from across the world, including the United States, Japan and Europe, is now engaged in accelerated, far more coordinated efforts to push forward climate finance, Alder said.
"International organisations, national authorities and the private sector now have no real option other than to participate. If they don't, they risk getting left behind."
Our Standards: The Thomson Reuters Trust Principles.
Chile's new constitution may end up looking a lot like the current text, which dates back to the Augusto Pinochet dictatorship – but without his name on it – after the political right took charge of the redraft process in a harsh nationwide electoral defeat for leftist President Gabriel Boric.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile.
Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2023 Reuters. All rights reserved