Amalthea Biweekly on Green Finance and Regulation, October 16 - 27, 2023
1) UK's Transition Plan Taskforce 'gold standard'?
The Transition Plan Taskforce (TPT) has unveiled a climate change disclosure framework, endorsed by 120 global attendees at the London Stock Exchange and a worldwide online audience. Co-Chairs Amanda Blanc, Aviva's CEO, and Baroness Penn, Treasury Lords Minister HM Treasury, urge companies to commence their transition plans utilising the Task Force's invaluable resources. This Disclosure Framework empowers firms to establish credible climate transition plans within their annual forward business strategy reports, fostering consistent, comparable reporting and simplifying the disclosure of climate-related data. Additionally, supplementary guidance has been issued, encompassing sector-specific recommendations, transition planning cycles, technical mappings, legal considerations, and web-based implementation guidance.
Source:https://transitiontaskforce.net/huge-welcome-for-launch-of-gold-standard-tpt-disclosure-framework/
2) Principles for climate-related financial risk management for large financial institutions
Federal bank regulatory agencies in the US have jointly established high-level principles aimed at ensuring the secure and sound management of climate-related financial risks within large financial institutions. Targeted at institutions with assets totalling $100 billion or more, these principles encompass both physical and transition risks linked to climate change. They provide guidance on governance, policies, strategic planning, risk management, data, measurement, reporting, and scenario analysis. Moreover, they address the integration of climate-related financial risks within traditional risk areas like credit, market, liquidity, operational, and legal risks. The principles do not restrict institutions from providing services to various customer classes or types, as long as they adhere to applicable laws and regulations.
3) Exposure Draft ED SR1 Australian Sustainability Reporting Standards
The Australian Accounting Standards Board (AASB) has introduced new climate-related financial disclosure rules, proposing the Exposure Draft ED SR1 for companies and financial institutions. The draft aims to enhance and standardise corporate climate reporting and is aligned with the International Sustainability Standards Board's (ISSB) sustainability and climate disclosure standards, IFRS S1 and S2. ED SR1 comprises three draft standards: ASRS 1 General Requirements for Disclosure of Climate-related Financial Information, ASRS 2 Climate-related Financial Disclosures, and ASRS 101 References in Australian Sustainability Reporting Standards.?
Consultation on the Exposure Draft is open until March 1, 2024.
领英推荐
4) UK GHG Scope 3 Emissions reporting
On June 26, 2023, the International Sustainability Standards Board (ISSB) issued its inaugural sustainability-related disclosure standards, which include mandates for reporting Scope 1, Scope 2, and Scope 3 greenhouse gas (GHG) emissions.
In the UK, larger organisations currently must disclose Scope 1 and Scope 2 emissions under the Streamlined Energy and Carbon Reporting (SECR) framework, with Scope 3 emissions primarily voluntary. The framework seeks to raise awareness of energy costs and emissions, providing data to encourage energy efficiency measures and enhance transparency for investors and stakeholders.?
The government is gathering input on the practicalities, costs, and benefits of Scope 3 GHG emissions reporting, as well as feedback on the SECR framework for a post-implementation review. The call for evidence is open to all interested parties, particularly UK businesses, investment professionals, trade associations, academics, and environmental reporting stakeholders.
5) Net zero Company Benchmark report highlights lack of detailed action plans
Climate Action 100+, the world's largest investor engagement initiative on climate change, has unveiled assessments of company performance against its updated Net Zero Company Benchmark. The results show that many focus companies are not progressing quickly enough to align with the Paris Agreement goals and reduce investor risks. While there has been notable improvement in long-term greenhouse gas reduction targets and TCFD-aligned disclosures, companies still need to make significant progress on short-term greenhouse gas reduction targets, capital expenditure allocation, climate policy engagement, and emissions reduction. Aligning with a 1.5°C pathway, as recommended by the International Energy Agency's Net Zero Emissions by 2050 Scenario, remains a challenge for most companies.
#tcdf #netzero #sustainability #sustainablefinance #roadtonetzero #issb #transitionplantaskforce #scope3 #regulations #scope1 #scope2