The UK investment management industry has called on the G7 to improve the required reporting around climate-change linked risk.
The Investment Association has written to the UK ambassadors and High Commissioners of the countries taking part in the G7 Summit this year and asked that a number of measures be agreed to combat climate change.
The measures comprise three requests, firstly support for the IFRS’ sustainability standards board to work "at pace" in order to develop reporting standards for sustainability, as well as more cooperation between regulators to ensure the standards are publicised and implemented correctly.
Secondly, the IA has asked that regulators ensure mandatory reporting that aligns with the international task force on climate-related financial disclosures, such as agreeing common standards on green gilts.
Finally, the IA asked the governments to set out "high level sector specific pathways" to meet the Paris Agreement goals, including details to reduce the risk of stranded assets (assets which suffer unanticipated premature write-downs, devaluations or conversions to liabilities).
Chris Cummings, chief executive of the Investment Association, said: “The meeting of the G7 is a prime opportunity for the world’s largest economies to take a coordinated, global approach to tackling climate change.
“As an industry which invests in companies around the world on behalf of both UK and overseas savers and investors, investment managers have a vital role to play in the shift to a more sustainable global economy.
“Ensuring high-quality and comparable data on the risks that companies face from climate change is key to achieving this and meeting the net zero targets.”
Last November, chancellor Rishi Sunak announced that the UK will launch its inaugural “green sovereign bond” in 2021 to meet growing investor demand.
Sunak said it would be the first in a series of new issuances as the government looked to build out a “green curve” over the coming years.
The money raised by the bonds will be used to help fund projects to tackle climate change, build infrastructure investment and create “green jobs” across the country.
sally.hickey@ft.com
