In an open statement, the 27 signatories urge governments to formally accept that companies should disclose climate change-related risks and opportunities in their reporting to investors.
Climate change, they argue, is not only an environmental problem, but an issue that affects business. Improving disclosure of the risks companies face from climate change is essential for the financial stability of the markets. At the same time, international agreement on disclosure would give investors and institutions a common set of data and help investors identify opportunities and make better-informed, longer-term decisions. Implementing the recommendations would also be an important step toward fulfilling the commitments of the Paris Agreement. Sergio P. Ermotti, UBS Group Chief Executive Officer, said: "We welcome and support the recommendations of the FSB’s Task Force on Climate-related Financial Disclosures that will contribute to better and higher availability of data on climate-related risks and information on organizations' climate change strategies. Over the next 15 years, an estimated USD 93 trillion will be needed for low-carbon infrastructure investments. For financial institutions and investors to do their part, they need a better understanding of climate-related investment risks."
