Post by hasan77 on Feb 15, 2024 10:16:04 GMT 3
Climate change-related issues suddenly becomes a box-ticking exercise to appease shareholders and society at large, that is greenwashing. According to the Datamaran research, financial services firms seem more reactive than proactive to climate change disclosure. This raises an important question: Are they greenwashing or do they simply not understand how climate change can affect them? The financial services sector has seen improvement, rising from 19 percent to 53 percent of signatories reporting with a high emphasis on climate change between 2014 and 2018.
However, three years since the TCFD recommendations were released, financial services still lag behind other sectors: The percentage of nonfinancial services putting a high emphasis on climate change reporting rose from 31 percent to 68 percent in the same time period. Only a matter of time The evolution of accountability shows South Korea Email List it is only a matter of time before the TCFD recommendations are integrated into mandatory regulations. As such, being ahead of the curve will help mitigate any backlash.
The EU Nonfinancial Directive is a good example: It started as a voluntary initiative, then took the form of a mandatory regulation in 2018. The world has seen a number of mainstream industry associations urge business to take action to manage environmental, social and governance risks and opportunities. In the last year alone, organizations such as the TCFD, the World Federation of Exchanges and the World Economic Forum, and joint work by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and the World Business Council for Sustainable Development (WBCSD) have published their recommendations on how they expect companies to manage nonfinancial risks.
However, three years since the TCFD recommendations were released, financial services still lag behind other sectors: The percentage of nonfinancial services putting a high emphasis on climate change reporting rose from 31 percent to 68 percent in the same time period. Only a matter of time The evolution of accountability shows South Korea Email List it is only a matter of time before the TCFD recommendations are integrated into mandatory regulations. As such, being ahead of the curve will help mitigate any backlash.
The EU Nonfinancial Directive is a good example: It started as a voluntary initiative, then took the form of a mandatory regulation in 2018. The world has seen a number of mainstream industry associations urge business to take action to manage environmental, social and governance risks and opportunities. In the last year alone, organizations such as the TCFD, the World Federation of Exchanges and the World Economic Forum, and joint work by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and the World Business Council for Sustainable Development (WBCSD) have published their recommendations on how they expect companies to manage nonfinancial risks.