AVN 67.75 Decreased By ▼ -0.73 (-1.07%)
BAFL 30.82 Decreased By ▼ -0.18 (-0.58%)
BOP 4.84 Decreased By ▼ -0.07 (-1.43%)
CNERGY 3.75 No Change ▼ 0.00 (0%)
DFML 14.05 Decreased By ▼ -0.18 (-1.26%)
DGKC 41.04 Decreased By ▼ -0.60 (-1.44%)
EPCL 47.21 Increased By ▲ 1.84 (4.06%)
FCCL 11.58 Decreased By ▼ -0.13 (-1.11%)
FFL 5.11 Increased By ▲ 0.01 (0.2%)
FLYNG 5.95 Increased By ▲ 0.10 (1.71%)
GGL 11.17 Increased By ▲ 0.76 (7.3%)
HUBC 67.68 Decreased By ▼ -0.82 (-1.2%)
HUMNL 5.71 Decreased By ▼ -0.04 (-0.7%)
KAPCO 28.03 Decreased By ▼ -0.19 (-0.67%)
KEL 2.28 Increased By ▲ 0.02 (0.88%)
LOTCHEM 26.25 Increased By ▲ 1.15 (4.58%)
MLCF 21.58 No Change ▼ 0.00 (0%)
NETSOL 86.53 Decreased By ▼ -1.82 (-2.06%)
OGDC 99.78 Increased By ▲ 0.48 (0.48%)
PAEL 11.08 Decreased By ▼ -0.03 (-0.27%)
PIBTL 4.23 No Change ▼ 0.00 (0%)
PPL 80.05 Decreased By ▼ -2.40 (-2.91%)
PRL 13.26 Decreased By ▼ -0.08 (-0.6%)
SILK 0.90 No Change ▼ 0.00 (0%)
SNGP 43.75 Decreased By ▼ -0.63 (-1.42%)
TELE 6.08 Decreased By ▼ -0.10 (-1.62%)
TPLP 15.88 Increased By ▲ 0.07 (0.44%)
TRG 121.33 Increased By ▲ 1.58 (1.32%)
UNITY 14.04 Decreased By ▼ -0.06 (-0.43%)
WTL 1.31 Increased By ▲ 0.05 (3.97%)
BR100 4,181 Increased By 9.7 (0.23%)
BR30 15,270 Increased By 16.5 (0.11%)
KSE100 41,723 Increased By 200.6 (0.48%)
KSE30 15,746 Increased By 83 (0.53%)
Follow us

The wealthy G7 countries on Saturday moved closer to mandatory disclose of companies’ climate impact despite a lack of global agreement and doubts from some NGOs.

“We support moving towards mandatory climate-related financial disclosures,” their finance ministers said in a statement released after two days of meetings, adding that this would “provide consistent and decision-useful information for market participants”.

The idea backed by the UK, the US, Canada, France, Germany, Italy and Japan would make it mandatory for all major companies to come clean on, for example, their carbon dioxide emissions — a crucial aspect of the transition towards cleaner energy.

Such regulations would help companies assess the financial impact of the climate crisis and make necessary changes as their countries set ambitious targets such as becoming carbon neutral by 2050.

It would also help investors who offer financing to large groups and take an ever closer interest in the impact of the climate on businesses, both in terms of performance and reputation.

The G7 says it is following the recommendations of the taskforce on climate-related financial disclosures (TCFD), put in place in 2017 with members from across the G20.

The finance ministers went even further by hailing the creation of a taskforce on nature-related financial disclosures, which covers not only the climate but also nature and biodiversity.

The challenge is that every country takes responsibility and imposes measures on its own companies and so there has to be agreement on accounting rules.

Britain already plans to force companies to go public on their environmental impact from 2025 — with the government claiming this makes it the most progressive country in the G20.

Nevertheless, disclosing such information will not be mandatory at first, and businesses in the country are only required to either publish the data or to explain why they are not doing so.

The governor of the Bank of France, Francois Villeroy de Galhau, said in an interview with The Financial Times on Wednesday that a global agreement could emerge from the COP26 climate change summit in Glasgow in November.

“Proper disclosure should become mandatory — I would expect this as a first step,” Villeroy told the newspaper.

“Nobody expected six months ago for us to go as quickly as we did and to say perhaps we could have a positive conclusion on mandatory disclosure at the COP26.”

Investors are also pushing G7 countries to do more, such as Britain’s IA (Investment Association), which is urging financial regulators to make the publication of climate risks mandatory. “Ensuring high-quality and comparable data on the impact of climate change lies at the heart of this,” said Chris Cummings, CEO of the IA.

For their part, NGOs warn that the latest measure is no guarantee that the business world will play its part in energy transition.

“Disclosures should have been mandatory a long time ago, but at this stage of the climate and ecological crisis, calling for better data is a dangerous distraction,” said David Barmes, an economist at Positive Money.

“Markets will not save the day,” he said, adding that in his view the G7 governments should mainly work with central banks and regulators to “actively shift finance out of fossil fuels and other environmentally harmful activities.”

NGOs said Wednesday in a report that G7 countries had missed a chance to become greener during the pandemic by massively subsidising polluting sectors such as air travel, despite their climate commitments.—AFP

Comments

Comments are closed.

G7 steps towards making companies disclose climate risks

Rupee up 1.08%, settles at 273.33 against US dollar

OGRA calls for action against hoarders of petrol, diesel in Punjab

Fed's Waller sees no sign of 'quick' decline in inflation

KSE-100 increases 0.48% owing to hopes of breakthrough in talks with IMF

ECP should announce election schedule for KP, Punjab: President Alvi

Holding polls in Punjab can be difficult as operation against militants underway, IG tells ECP

Amir Dogar among 12 PTI workers arrested in Multan

Turkish bourse shut for 5 days after quake, Wed trades cancelled

More survivors found as Turkiye-Syria quake toll tops 11,200

Google to soon add generative AI features in search results