New Zealand leads the way on climate-related risk disclosure
Momentum continues to build on climate-risk disclosure across the globe, with New Zealand’s finance minister, James Shaw, announcing legislation in September 2020, which will make the country the first to require large financial institutions to disclose their climate-related risk. Many other jurisdictions have introduced guidelines and are looking at further climate-related risk disclosure requirements. For example, the United Kingdom’s joint regulator and government TCFD Taskforce has outlined a strategy and roadmap leading to mandatory disclosures across the economy by 2025, with a significant portion of disclosures in place by 2023. France’s Article 173 legislation brokethe mould in 2018, setting out a framework for volntary disclosure, while Switzerland has become a TCFD supporter and is launching a consultation in 2021 to explore pathways for mandatory disclosure.
Furthermore, the UK’s COP26 Secretariat have identified commitments on climate risk disclosures as a key pillar of their private finance agenda.
Join our statement to climate-related physical risk disclosure
UNEP FI have been at the forefront of piloting climate-risk assessment in line with the TCFD through our pilot programmes and we are highly supportive of efforts to ensure financial institutions publicly disclose their climate-related risks as the foundation for more ambitious climate action. This is why we are promoting a statement to public disclosure, with a particular focus on the risks from the physical impacts of climate change, where we believe risk management is especially important:
Disclose climate-related physical risk on client/investee portfolios within 2 years of signature in line with the TCFD recommendations
Five leading institutions have already signed up to this statement, which will signal that financial institutions are taking concrete measures to build climate resilience. Signatories will deliver their strong statement on the importance of risk disclosure at the Climate Adaptation Summit in January 2021 and potentially at COP26. For more information, visit our webpage, read our brochure, or contact Paul Smith or Remco Fischer.