Many of the tests do not capture 'second round' effects, or impact on banks of climate change hitting the wider economy, the Financial Stability Board found.
The International Federation of Accountants released “Getting to Net Zero,” a global review of corporate disclosures on emissions targets, analysing the disclosure trends and transition plans of the 40 largest exchange-listed companies in 15 jurisdictions, at the beginning of COP27.
The road map launched at the COP27 climate summit in Egypt involves 14 food companies ending deforestation in their supply chains to limit global warming to 1.5 degrees Celsius.
An exposure draft proposes additional guidance on how two previously published Recommended Practice Guidelines can be applied by governments and public sector entities to report on sustainability programme information.
Association leaders in the environmental, social, and governance space discuss fast-approaching standards and what finance professionals need to do to prepare.
Finance teams can consider steps such as hedging, fixed-price contracts, and revising production schedules to counter energy price shocks and disruption.
The move towards mandatory ESG reporting will require finance to assess the knowledge already in the team and new expertise needed — as a starting point.
Amid competition between legacy automakers and EV startups, new entrants are looking to develop a production track record to ease funding conversations.
The IAASB said it will develop standards for assurance on sustainability reporting, which will demonstrate that the information reported is reliable and credible.
