G7 finance policies are urgently needed to achieve net-zero goals

(Reuters, 7 Jun 2021) Businesses are pledging to go green, but we need a robust financial system to hold them to account.

Maria Mendiluce is the CEO of the We Mean Business coalition and Paul Simpson is the CEO and co-founder of CDP

The recent G7 communiqué is encouraging. Hot on the heels of the pledge to stop international financing of coal, G7 finance ministers have committed to adopt mandatory environmental disclosure, advance discussions on carbon pricing, and mobilize the $100 billion of climate finance pledged to developing countries.  

Expectations are high for the Leaders’ Summit. As seven of the world’s largest economies - all of which are committed to net-zero by 2050 - the G7 can now build on this by creating the financial conditions for business to innovate and economies to thrive. 

Over the past year, we’ve seen a surge in corporate net-zero commitments with 1400+ companies now setting science-based targets. With climate commitment comes accountability. Business needs a financial framework that drives climate action in the real economy.  

Growing demand for a consistent way to measure progress against climate commitments means mandatory disclosure on climate performance is essential. G7 countries will ensure companies and financial institutions accurately measure climate related risk and impacts and include these in their business decisions by making disclosure mandatory.