12:00 to 13:00 CET : Task Force on Climate related Financial Disclosures Implementation and Climate Action, in partnership with International Finance Corporation (IFC) and The Bloomberg Foundation

October 21, 2021

Introduction

Climate change is a key point on the global political agenda in 2021 and politicians, regulators and financial market actors have started to discuss how to address the issue with the means of the market and how to best help companies to become more climate resilient. As global financial markets take steps towards better integrating climate risk and opportunities into pricing mechanisms, disclosure provides the bedrock for progress in the pursuit of a more sustainable global economy.

There is a growing demand for decision-useful, climate related financial information in annual reports and financial filings which has led to an increased need for issuers to update their knowledge on climate related risks and reporting frameworks. Following this trend, there are rapid advances associated with regulation and policy frameworks aiming to support climate resiliency in markets. A number of leading economists and experts see climate change as representing the greatest commercial opportunities of our time. Those companies and countries which are able to most effectively navigate the transition to net zero and identify the opportunities in providing solutions, will not only be more resilient but will also achieve more sustainable growth.

Stock exchanges are uniquely positioned to advance climate disclosure through market guidance. They can support consistency and standardisation of information that enables both local and global progress in climate reporting and use of climate-related data. Stock exchanges’ infrastructure, networks and experience can contribute to addressing climate change via capital markets. Working with and learning from peers can play an essential role in achieving climate resiliency of our markets.

A newly published UN Sustainable Stock Exchange (SSE) model guidance on the Task Force on Climate Related Financial Disclosures (TCFD) adoption, assisting exchanges to implement the TCFD recommendations, as well as adopt a new action plan, showing how exchanges can lead by example to make markets more climate resilient, were the foundation for the session’s discussion.

Issues addressed:

  • Why is climate disclosure important?
  • How can exchanges assist in implementing TCFD disclosure among their issuers?
  • How to integrate climate disclosure guidance in the wider context of exchanges’ environmental, social, and corporate governance (ESG) guidance?
  • What can exchanges do to lead by example?
  • How do markets connect climate disclosure to investment?

Session Highlights

The Panellists discussed that climate change is a key point on the global political agenda in 2021 and politicians, regulators, and financial market actors have started to discuss how to address the issue with the means of the market and how to best help companies to become more climate-resilient. Leading economists and experts see climate change as representing the greatest commercial opportunities of this era. Stock exchanges are uniquely positioned to advance climate disclosure through market guidance. They can support consistency and standardisation of information that enables both local and global progress in climate reporting and the use of climate-related data.

Panellists also discussed how companies and countries can effectively navigate to sustainable growth and achieve their net-zero goals. Panellists also discussed the IFC journey since 2005, IFC supported the creation of 145 goals, laws, and regulations and also 11 ESG recording guidelines. The training is provided by UN SSE, IFC, and Climate Disclosure Standard Board (CDSB) which is a CDP certified course to Issuer and other key stakeholders to better understand climate disclosure and its importance. Panellists also emphasised the disclosure made by companies on climate or ESG related data to Investors so that Investors can align their investment according to risk and price evaluation and allocate their investment effectively.

As a concluding remark, it was discussed that major stakeholders like exchanges, regulators, and standard setters must help companies to repost their data consistently so the investors can integrate this information in their decision and allocate resources. Also, the social aspect must be integrated into the investment decision.

Opening

  • Anthony Miller, Coordinator, UN Sustainable Stock Exchanges, UNCTAD

On the panel were:

  • David Harris, Global Head of Sustainable Finance, Data and Analytics, London Stock Exchange Group
  • Jonathan Bravo, Head of Finance, IT and Senior Policy Advisor, International Organisation of Securities Commissions (IOSCO)
  • Liam Sim Yeo, Special Adviser, Singapore Exchange
  • Mardi McBrien, Managing Director, Climate Disclosure Standards Board
  • Shameela Soobramoney, Chief Sustainability Officer, Johannesburg Stock Exchange

Moderator

  • Martine Valcin, Global Manager, ESG Advisory, Knowledge and Learning, International Finance Corporation