The regulatory team’s goal is to embed climate-related financial risk into market disclosure and financial reporting. We aim to influence the creation of disclosure standards and best practise guidance that enables and encourages markets to accurately price climate-related risks of fossil fuel companies.
In parallel with the IASB’s Management Commentary work stream, in May 2019, Carbon Tracker published the paper “Reporting for a Secure Climate” that identified the types of forward-looking, quantitative information companies could disclose to enable investors to assess transition risk. This report garnered significant international media coverage from outlets including major international outlets, like AFP, Environment and Energy News, City AM and others.
Also in May, Carbon Tracker submitted written evidence to the Treasury Select Committee inquiry into the decarbonisation of the UK economy and green finance following The UK Climate Change Committee (CCC) reporting on its recommended targets for the UK to reduce its greenhouse gas emissions to net zero by 2050.
In a blog published by Carbon Tracker, we applauded the UK Government’s recognition that the right technologies exist to meet these targets. However we also cast a light on the fact that, alongside the 1% of global CO2 directly emitted by the country, the UK is a service-based economy with a world scale financial market in the City of London, which remains one of the largest global centres for financing fossil fuel. As an important step, beside existing carbon budget calculations, we believe that there needs to be an associated approach to measuring and understanding the carbon and climate consequences of the international financing of fossil fuels.
The "Reporting for a Secure Climate" work formed the basis of discussions with several large accounting firms and regulators in the UK. These included the FRC Reporting Lab, which then published recommendations on reporting climate related risks, and which discussed many of the issues raised in Carbon Tracker’s regulatory work.
In June 2019, the UK Government became the first major economy to pass net zero emissions laws.
WHAT PEOPLE SAY ABOUT US:
“Carbon Tracker’s work is widely-watched because of its role in informing international regulatory initiatives on climate change spearheaded by U.N. envoy Mark Carney, a former governor of the Bank of England.”
Matthew Green Special Correspondent on Climate, Reuters News Agency