Bank of England says company disclosures on climate risks will be mandatory

(Reuters, 16 Oct 2020) Harmonised standards would allow investors to better compare and track how companies are shifting to a lower-carbon economy.

Current rules on company disclosures to help markets price in risks from climate change will become mandatory, a senior Bank of England official said on Friday.

It is the latest push in the financial sector to harmonise standards globally so that investors can better compare and track how companies are shifting to a lower-carbon economy and for asset managers to make more informed decisions. 

Currently, regulations and rules vary widely across the world, detailing what information companies need to provide.

"Disclosing your plans can improve your credit rating, broaden your investor base, reduce your cost of finance, and economise on the fixed costs of meeting increasingly vocal investor requests for information," the BoE's executive director for markets, Andrew Hauser, told an Investment Association online event on Friday.

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Reuters, 16 Oct 2020: Bank of England says company disclosures on climate risks will be mandatory