LONDON (Reuters) – Britain ought to pressure massive firms and property homeowners comparable to pension funds to report their publicity to local weather dangers by 2022 on the newest, a cross-party group of lawmakers mentioned in a report revealed on Monday.
Concerns within the funding group that property are being mispriced as a result of local weather danger isn’t being factored into monetary reporting have prompted demand for extra clear climate-related monetary data.
Think-tank Climate Tracker has warned that trillions of are in danger globally resulting from so-called stranded property, which embody oil and gasoline reserves, that can’t be burnt if global local weather targets are to be met.
“Climate change poses financial risks to a range of investments – from food and farming, to infrastructure, construction and insurance liability,” Mary Creagh, chair of the Environment Audit Committee mentioned in an announcement revealed with the group’s report.
“The low-carbon transition also presents exciting opportunities in clean energy, transport and tech that could benefit UK businesses,” she mentioned.
The report mentioned the government has inspired publicly listed firms to report local weather danger however mentioned a voluntary strategy is ineffective.
“The government should make climate risk reporting mandatory on a ‘comply or explain’ basis by 2022,” the report mentioned.
There is rising worldwide momentum behind strikes to encourage monetary reporting on sustainability.
The European Bank for Reconstruction and Development final week revealed steerage for firms reporting on the bodily influence of local weather change of their monetary outcomes.
Reporting By Susanna Twidale; Editing by Susan Fenton