Climate-related transition plans can be a core component of climate disclosures, aiming to articulate the outputs of entities’ internal strategic planning and risk management processes to prepare for risks, opportunities and potential changes in business models associated with the transition ...
Executive Summary
... to a lower carbon, higher physical risk global economy.
Amid significant interest in transition plans from other international organizations, IOSCO has explored how disclosures about transition plans can support its objectives of investor protection and market integrity. We analysed current regulatory practices on transition plan disclosures by issuers and capital markets intermediaries as part of wider jurisdictional climate disclosure requirements. We also assessed current industry practices around the formulation, use and disclosure of transition plans by securities issuers, and by asset managers in relation to investment strategies, entity-level and fund-level disclosures.
IOSCO’s outreach in connection with this Report was conducted through industry engagement with capital market participants in two global roundtables, a roundtable with its Affiliate Members Consultative Council (AMCC), bilateral sessions with credit rating agencies and finance industry associations, as well as a jurisdictional survey of the members of IOSCO’s Sustainable Finance Taskforce (STF).
The Report provides a summary of the findings to convey how investors and other key stakeholders use transition plan disclosures, and their views on the current state of transition plan disclosures and whether and how guidance on the topic can help. The Report concludes by taking note of future developments that may help address some of the issues identified during IOSCO’s outreach.
The Report is structured around six chapters. Chapter 1 introduces the topic and sets out the objective of the report. Chapter 2 provides background and context on the relevance of transition plan disclosures for capital markets and highlights the key features of existing disclosure frameworks. Chapter 3 summarizes the IOSCO fact-finding on current jurisdictional practices and recent developments on transition plan disclosures. Chapter 4 aggregates the inputs received from industry engagement on the use of transition plan information in primary and secondary markets, product design and credit ratings. Chapter 5 summarizes the key gaps and challenges relating to transition plan disclosures identified through the jurisdictional survey and industry outreach. Chapter 6 sets out the matters for future consideration and the implications of the STF findings on IOSCO’s role in relation to transition plan disclosures....
more at IOSCO
© IOSCO
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article