Promoting Sustainable Finance and Financial Stability Through Climate-Related Corporate Disclosure in Asia
Publication | October 2023
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- Following the 2015 Paris Agreement goal of limiting the global average temperature rise to well below 2°C above pre-industrial levels, and to aim for 1.5°C, the majority of countries have committed to achieving net-zero greenhouse gas (GHG) emissions by around 2050.
- Globally, current climate policy commitments and practices have fallen significantly short of the necessary measures to achieve these emissions targets. It is important for Asia to enhance the resilience of financial system against climate risks and ensure the availability of private sector financial flows.
- Promoting companies to disclose climate-related information based on standardized frameworks is crucial.
- Asia should promote corporate disclosure based on the Task Force on Climate-related Financial Disclosure (TCFD) recommendations to correct market failure that hampers efficient financial allocation.
- Asia should also consider preparing a plan to adopt the climate change-related standards published by the International Sustainability Standards Board (ISSB) in June 2023.