The Financial Markets Authority has released more details on how organisations should comply with new climate reporting requirements.
Organisations that will have to comply include most listed companies, banks and insurers and fund managers.
The authority is taking a measured approach to begin with, as it will take time for everyone to figure out how to put the information together and who to ask for help.
But after that, reports will need to cover Scope 3 emissions – those within the supply chain that the organisation doesn’t have direct control over.
This transparency will no doubt lead to an even greater focus on climate change mitigation as a driver of value.
Right now we’re seeing banks, in particular, rolling out new loan deals that price in environmental gains.
It’s only the beginning, and we’re not far away from a broad market understanding that green growth is good for business, rather than a cost that is to be avoided.
