WFE Welcomes Guidance on Climate-Related Metrics

The World Federation of Exchanges (WFE), the global industry group for exchanges and CCPs, has commented on the Task Force for Climate-related Financial Disclosure’s (TCFD) updated guidance on Climate-related Metrics, Targets and Transition plans.

The WFE supports the proposed updates to the guidance, which will provide a foundation for reporting on climate related risk and opportunity. Since issuing its final recommendations in 2017, the TCFD framework has played a pivotal role in improving climate-related disclosure practices—with formal endorsement amongst the WFE membership continuing to grow.

The draft guidance seeks to encourage a more systematic approach to the selection and disclosure of metrics by introducing a set of cross industry climate-related metrics. This is vital to help all participants within the financial services ecosystem access clear, consistent, and comparable sustainability related data. The WFE makes the following recommendations to further strengthen the guidance:

  •    The adoption of a standardised format for climate-related targets.
  •   Encouraging organisations to provide climate-related opportunity metrics, such as ‘green revenues’.
  •   Taking a proportionate approach to reporting expectations with regards to Small and Medium-Sized Enterprises.
  •   Robust calibration of performance metrics when tying executive compensation to climate targets.
  •   Support for a materiality assessment which is reflective of the diverse range of views on this subject.

Nandini Sukumar, Chief Executive Officer, the WFE said: “The risks presented by climate change to business and society are clear, and we fully support the TCFD’s efforts to further refine its disclosure framework. As an industry that sits at the heart of the financial services ecosystem, we see many benefits in a globally consistent approach to disclosure that promotes transparency and accountability as well as effective capital allocation towards greener solutions.”

Please click here to read in full

Source: WFE


Related articles

  1. Investors in private markets have struggled with inefficient and manual processes.

  2. OPINION: Artificial, Yes. Intelligent? Maybe.

    Software and AI can automate some of the most mundane work for a financial analyst.

  3. Daily Email Feature

    Nasdaq to Expand ESG Data Hub

    The European data business has launched the ESG Data Hub and the Nasdaq Sustainable Bond Network.

  4. ‘Next-Gen’ TCA as Broker Differentiator

    Abel Noser will provide global multi-asset TCA to the bank’s Securities Services clients.

  5. Buy Side Responds to Esma on Clearing Swaps

    This was the first time ESMA found breaches in confidentiality and integrity of EMIR data.