ENVIRONMENT: Companies must disclose climate risk - G7

G7 finance ministers participate in symbolic tree planting

1,202Views 1Comments Posted 07/06/2021

The G7 countries took a big step to require companies to disclose their climate risk, something they consider crucial for the energy transition despite the reserves of the NGOs since an agreement has not yet been reached at the global level.

"We are in favor of the mandatory publication of climate-related financial data, which provides reliable and useful information for decision-making to market participants," said the G7 Finance in its statement at the end of its meeting in London.

These mandatory declarations, which include for example CO2 emissions or investment projects, will apply to all large commercial companies.

The goal is to better assess the financial impact of the climate crisis and support the ecological transition of countries that want to achieve carbon neutrality by 2050.

It is also essential for investors who finance large groups and who are increasingly concerned about the impact of climate change. on companies, either because of their results or their reputation.

The G7 says it follows the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), created in 2017 under the auspices of the G20.

Finance ministers went even further by welcoming the creation of the TNFD (Taskforce on Nature-related Financial Disclosures), which deals not only with climate but also with nature and biodiversity.

Regarding financial climate risks, the challenge is for each country to impose this measure on their companies and for there to be an agreement on the development of common accounting standards.

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