By Maitane Sardon
London Stock Exchange Group PLC Chief Executive David Schwimmer and Mark Carney, the UN's special envoy for climate and finance and former governor of the Bank of England, have called on stock exchanges around the world to support an initiative to help improve the environmental data companies report.
On Wednesday, they sent a letter to the CEOs of a number of exchange groups around the world asking them to join a coalition that will commit to supporting climate disclosures in line with the Task Force on Climate-Related Financial Disclosures.
The TCFD is a set of guidelines for companies to disclose their climate-related risks that can help investors in their decision-making. While it is voluntary, Mr. Carney has entertained the idea of making it mandatory.
"In light of the current Covid-19 crisis, it is more important than ever that the financial-services community remains focused on long-term sustainable and resilient economic growth," Mr. Carney and Mr. Schwimmer wrote in the letter. "Stock exchanges can play a leading and transformative role in helping corporate issuers to make the transition to a sustainable economy."
Ahead of the next UN Climate Change Conference in Glasgow, the pair are asking stock exchanges to support an initiative with the United Nations Sustainable Stock Exchanges that aims to draw up best-practice reporting guidance on climate disclosure and will be launched in September.
Some investors, whose decisions are also based on the environmental, social and governance data companies disclose, have backed the initiative.
"Institutional investors... need globally consistent high-quality climate and sustainability data to inform investment decisions," said Jack Ehnes, CEO of the California State Teachers' Retirement System, adding that exchanges can play a critical role to improve the data and reinforce global standards.
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(END) Dow Jones Newswires
July 10, 2020 09:15 ET (13:15 GMT)Copyright (c) 2020 Dow Jones & Company, Inc.