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Investors are, in addition, more stringent measures for companies and governments on climate and environmental aspects in efforts to align with the transition to a low carbon economy including on the quality of disclosures.
According to the Global Investor Statement to Governments signed by 631 investors representing $37 trillion in assets, “investors need reliable and decision-useful climate-related financial information to price climate-related risks and opportunities effectively.” The lack of clarity on how to structure the climate and environmental information within the mainstream report and to achieve effective disclosure presents a challenge to companies seeking to adequately address investor need. Limited knowledge on available resources and tools on what good practice looks like is often cited by companies as a barrier to achieving fuller disclosures on climate and environmental risks and opportunities.
To help companies in the EU address these challenges, CDSB has introduced the Enhanced Reporting Europe Campaign. The campaign is part of a four-year EU LIFE FinAction project supporting the transition to a low carbon and environmentally sustainable financial system by improving the corporate climate change and natural capital information available in the mainstream report to investors.
Companies joining the campaign will be able to improve climate and environmental reporting including under the EU Non-Financial Reporting Directive and the Task Force on Climate-related Financial disclosures recommendations. They will be better equipped with the tools to enable to simplification of what is often a complex exercise of understanding how to report the climate and environmental information with the same rigour as financial information.