29 September 2020
New Zealand mandates climate-related risk disclosure
Momentum continues to build on climate-risk disclosure across the globe, with New Zealand’s finance minister, James Shaw, announcing legislation, which will make the country the first to require large financial institutions to disclose their climate-related risk. Many other jurisdictions have introduced guidelines and are looking at further climate-related risk disclosure requirements. Furthermore, the UK’s COP26 Secretariat have identified commitments on climate risk disclosures as a key pillar of their private finance agenda.
Join our commitment to climate-related risk physical disclosure
UNEP FI have been at the forefront of piloting climate-risk assessment in line with the TCFD through our pilot programmes and we are highly supportive of efforts to ensure financial institutions publicly disclose their climate-related risks as the foundation for more ambitious climate action. This is why we are promoting a commitment to public disclosure, with a particular focus on the risks from the physical impacts of climate change, where we believe risk management is especially important:
Disclose climate-related physical risk on client/investee portfolios within 2 years of signature in line with the TCFD recommendations
Five leading institutions have already signed up to this commitment, which will signal that financial institutions are taking concrete measures to build climate resilience. Signatories will deliver their commitment and a strong statement on the importance of risk disclosure at the Climate Adaptation Summit in January 2021 and potentially at COP26. For more information, visit our webpage, read our brochure, or contact Paul Smith or Remco Fischer.