Climate change will remain high on the investor and regulatory agenda
The Covid-19 pandemic has sharpened everyone’s perception of risk, leading some to question whether the health crisis is just a “dress rehearsal” for the climate crisis.
2020 saw a spate of high-profile climate pledges – from governments, banks, asset managers, pension schemes and corporates alike. The emphasis in 2021 will be on turning these announcements into credible action plans. Those who don’t, run the risk of being accused of greenwashing.
Moving towards mandatory TCFD-aligned climate disclosure
Investors and other stakeholders globally continue to press for more and better ESG data that is relevant, reliable and comparable. This in turn is leading to the roll out of mandatory climate-related disclosure regimes in some jurisdictions. The Task Force on Climate-related Financial Disclosures (TCFD) has become the global gold standard for climate disclosures.
Getting closer to a single global ESG reporting standard
Pressure is mounting to agree on a single global ESG reporting methodology. Although the TCFD is now widely accepted as the global gold standard for climate-related disclosures, the same cannot be said for the rest of the ESG “alphabet soup” – where there is a plethora of ESG reporting frameworks, standards and metrics.