Concrete Actions by Non-state Actors
17:00 - 18:30
| Event title | Mainstreaming climate disclosure in OECD countries |
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| Contents | This session will discuss increasing demand for disclosure of climate related risks and strategies by companies and investors. It will highlight innovative policies to promote disclosure as well as good practices and concrete actions from non-state actors such as corporations, pension funds and asset managers to mainstream climate disclosure and integrate other environmental, social and governance (ESG) factors in business strategies of corporations and institutional investors. It will discuss key challenges and opportunities for encouraging scenario analysis, and aligning business strategies or portfolios with a 2-degree scenario. It will also highlight good practices from Japan and other countries. It will build on relevant OECD work, as well as the recommendations of the FSB Task Force on Climate-Related Financial Disclosures and the EU High-Level Expert Group on Sustainable Finance. |
| Keywords | "Disclosure of climate related risks, ESG, TCFD, OECD countries |
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Final Programme
Welcoming remarks (10 min)
- Mr. Satoshi Tanaka, Principal Research Director, Institute for Global Environmental Strategies (IGES), Japan
Scene setting of the panel discussion by the chair and moderator (10 min):
- Ms. Cristina Tébar Less, Head of Responsible Business Conduct (RBC), Organisation for Economic Co-operation and Development (OECD)
Discussion (45 min) :
- Mr. Stanislas Dupré, Global Director, 2° Investing Initiative, and member, Task Force on Climate-Related Financial Disclosures (TCFD), United States
- Mr. Anthony Hobley, Chief Executive Officer, Carbon Tracker Initiative, England
- Ms. Christina Olivecrona, Sustainability Analyst, Second Swedish National Pension Fund (AP2 Institutional Investors Group on Climate Change (IIGCC)
- Mr. Julien Perez, Senior Manager - Head of Climate & Energy services, Ernst & Young (EY), France
Comments (5 min):
- Ms. Yukari Takamura, Professor, Graduate School of Environmental Studies, Nagoya University, Japan
Q&A (15 min):
Closing remarks by the chair and moderator (5 min):
Session Summary
The event was launched with welcoming remarks by Mr. Satoshi Tanaka . Ms. Cristina Tébar Less then set the scene for the discussion and introduced the panelists. The panel discussed three main questions:
1. What are key challenges and priorities to ensure reporting and disclosure frameworks incorporate climate factors, and that this information is incorporated by investors, especially institutional investors in their investment decisions? Participants discussed key challenges to ensure climate reporting is not in a vacuum from issuers and is used by investors. This requires to further integrate disclosure. Stan Dupre highlighted the need to perform scenario analysis at EU
level by financial supervisors. Christina Olivecrona highlighted opportunities created by TCFD recommendations, as they not only provide a disclosure framework but also an analytical tool and an engagement tool.
2. How can climate disclosure be used as a tool for investors to influence corporations' business strategies? Anthony Hobley stressed the need to frame disclosure in the context of impact, and the huge potential of disclosure to achieve impact through mobilising the shareholders, including asset owners and asset managers, including through forward-looking scenarios and stress tests.
3. What is the role of policy makers and which frameworks should be used? Julien Perez highlighted the role of French Article 173 in raising awareness of corporations and investors on climate risks. Christina Olivecrona noted the need to go beyond carbon footprint metric, and towards forward-looking metrics. Anthony Hobley stressed OECD can play a key role between regulators and investors. Disclosure has to be fit for purpose. Policy makers can also help to ensure a certain degree of consistency. Stan Dupre highlighted the need to go beyond current Article 173 to create demand on the top of the chain from financial supervisors, and to support standardization of disclosure approaches.
Ms. Yukari Takamura commented on the Japanese situation and launched a discussion between the panelists on who, how and why can climate disclosure be mainstreamed in OECD countries.
Key Messages
- Climate disclosure frameworks provided by TCFD and the French legislation can be useful tools for investors to engage with corporates and make impacts on their business strategies. Policy makers can accelerate this process including by promoting forward-looking scenarios and stress-testing and supporting further standardisation.
- OECD can play important roles including through facilitating dialogue between investors and policy makers and providing in-depth analyses on country-specific contexts.
- Countries, including Japan, can learn from existing models and develop a model in accordance with each context.
Name and organisation of the person(s) who prepared the summary
Geraldine Ang / Hideki Takada, Organisation for Economic Co-operation and Development
(OECD)
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