Legal & Regulatory News

NGFS publishes progress report on bridging climate-related data gaps

On 26 May 2021, the Network for Greening the Financial System (NGFS) published a progress report on bridging climate-related data gaps as part of the first phase of their work in this area. The report sets out the key issues that need to be considered going forward.

The report highlights that reliable and comparable climate-related data is crucial in order for financial sector stakeholders to assess financial stability risks, properly price and manage climate-related risks, and take advantage of the opportunities arising from the transition to a low-carbon economy. It also highlights that persistent gaps in climate-related data hinder the achievement of these objectives.

The report notes that three building blocks should form the basis of policy interventions designed to catalyse progress towards better climate-related data:

• rapid convergence towards a common and consistent set of global disclosure standards;
• efforts towards a minimally accepted global taxonomy; and
• the development and transparent use of well-defined and decision-useful metrics, certification labels and methodological standards.

Click here to access the NGFS report.