A global task force which includes executives from major insurance companies and the Canada Pension Plan Investment Board has urged businesses around the world to do more to report the financial impact of climate change.
The Task Force on Climate-Related Financial Disclosures, chaired by former New York mayor Michael Bloomberg, put forward a framework of recommendations in a new report, which says that businesses and industries around the world should adopt a universal approach to the issue.
The 32-member group was set up by Bank of England Governor Mark Carney in his role as head of the Financial Stability Board in December last year.
Christian Thimann, group head of strategy, sustainability and public affairs,
AXA, is a co-chair of the panel, and other members include executives from
Swiss Re,
Aviva Investors,
Tokio Marine Holders and KPMG.
The report, released yesterday, contains advice which may be adopted into law by some G20 countries,
Bloomberg reports, including the recommendation that organizations routinely disclose potential impacts of climate change on its business, as well as how they are identified and measured.
The report also suggests that companies use scenarios to analyse how they would be affected by targets to cut greenhouse gases.
“Climate change is not only an environmental problem but a business one as well,” Bloomberg said in the report. “We need business leaders to join us to help spread these recommendations across their industries in order to help make markets more efficient and economies more stable, resilient and sustainable.”
“Widespread adoption of the recommendations will help ensure that climate-related financial issues are routinely considered in business and investment decisions and encourage an effective dialogue between companies and banks, insurers and investors,” he said.
The report comes as speculation mounts over whether the US will continue with the Paris climate change agreement when Donald Trump – who has called global warming a “hoax” – takes the U.S presidency.
The report says its recommendations are practical and should be adopted voluntarily by all organizations across jurisdictions and economic sectors, the
Toronto Star reports.
Following its release, there will be a 60-day consultation period for feedback, ending February 12.
Related stories:
Natural disasters and climate risk: Why the industry is worried
Fort McMurray: Uninsured turn to charities
