What will be behind the next global financial crisis? According to the Bank for International Settlements (BIS), it could be climate change, which has the potential to unleash ‘extremely financially disruptive events.’ In their words — “integrating climate-related risk analysis into financial stability monitoring is particularly challenging because of the radical uncertainty associated with a […]
Investors are increasingly demanding more extensive and clearer reporting on environmental, social and governance (ESG) factors, and while the E of ESG commands the majority of attention, governance should not be overlooked. The UK’s recent Financial Reporting Council report on work-force related corporate reporting identifies areas where companies need to improve in order to reflect […]
This week investment powerhouse BlackRock – who manage $7 trillion of assets – set out a compelling case that climate change is a defining factor in companies’ long-term prospects – and their plan to tackle this by becoming a leader in sustainable investing. The world’s largest fund manager plans to divest from companies who get more […]
A recent report from Accountancy Europe sets out an articulate and ambitious plan to cut through the noise of non-financial reporting initiatives with a global, interconnected reporting standard.
France has joined the UK in the push to make environmental reporting standards compulsory in order to tackle greenwashing and enable sustainable investment. France’s finance minister, Bruno Le Maire, told the Financial Times recently that France is encouraging the EU to introduce compulsory environmental reporting standards for European companies and to apply a common definition of […]
ESMA Chair Steven Maijoor’s speech underlined the importance of IFRS going forward and described the expected impact of structured (ESEF) data in Inline XBRL for users and regulators alike. He also urged policy makers to focus on standardisation of ESG disclosures.
As we heard at Data Amplified 2019, the Sustainability Accounting Standards Board (SASB) believe that structured data and standards are crucial to effective sustainability disclosure. To make digital sustainability reporting as simple as possible for issuers, and to make data aggregation and analytics as convenient and effective as possible for investors, SASB are working to develop […]
The Task Force on Climate-related Financial Disclosures (TCFD) has formed a new advisory group to help them assist companies with one of the more challenging elements of climate-related disclosure: scenario analysis. Previous TCFD status reports have noted how companies have found scenario analysis challenging. Companies often struggled to construct appropriate scenarios, to understand how their […]
How should Environmental Social and Governance (ESG) data be reported in order to best cater to the needs of investors? Earlier this week Securities and Exchange Commission (SEC) Chairman Jay Clayton explored this topic in remarks to the Investor Advisory Committee. The Investor Advisory Committee advises the SEC on various regulatory priorities, including the effectiveness […]
A new UK Financial Reporting Council (FRC) report indicates that companies are falling short of investor expectations for quality, granular climate-related reporting. As we heard from SASB at Data Amplified, demand for climate-related reporting is growing. However, for reporting to be useful for investors, it needs to be clear and comparable. The FRC report provides practical guidance to […]