Bloomberg Task Force opens the way for ‘climate stress tests’ for companies and investors | WWF

Bloomberg Task Force opens the way for ‘climate stress tests’ for companies and investors

Posted on 14 December 2016
Companies and investors should report the climate-related risks of their business plans, the Michael Bloomberg-led task force of the Financial Stability Board recommended today (1). WWF welcomes this step towards more transparency and calls on G20 finance ministers, financial regulators and central banks to make such reporting mandatory. This information should be used to establish “climate stress tests” against the “well below 2°C target” set by the Paris Agreement for corporates’ and investors’ portfolios, in order to assess their exposure to climate risk.

These recommendations are part of the draft report published today by the Financial Stability Board’s Task Force. The draft is now open for a two months consultation period.

Margaret Kuhlow, lead of WWF International Finance Practice, said:

“We applaud the leadership of the FSB Chair Mark Carney and welcome the recommendations from the Financial Stability Board’s Task Force to assess climate risks and opportunities that companies and investors face. We believe that the use of forward-looking climate scenarios is the only meaningful way to test portfolios and business models against the well below 2°C limit from the Paris Agreement and ensure consistent climate impact information for the market. G20 members should now endorse the recommendations and ensure that climate scenario analysis gets mainstreamed.”

Sebastien Godinot, Economist at WWF European Policy Office, said:

"The European Commission is setting up an EU High Level Expert Group for 2017 on how to make European finance more sustainable. The EU Expert Group should seize the opportunity to lead the way and make “climate stress tests” mandatory for all companies and investors in Europe, as a first step to align business models with the Paris Agreement. Voluntary implementation will never be swift enough for answering the climate challenge timely.”


Notes to the editor:

1. The ‘Task Force on Climate-related Financial Disclosures’, created by the Chair of the Financial Stability Board and Governor of the Bank of England, Mark Carney, and led by Michael Bloomberg, has been tasked to issue recommendations on adequate climate-related financial disclosure to assess climate risks and opportunities for companies, in order to contribute reducing climate-related risks and mitigating climate change.

2. WWF recent report on green bonds, published in June 2016, calls for collective action to support the development of effective and credible green bond standards which must become the new norm for the entire bond market. The WWF report ‘Green bonds must keep the green promise!’ is available in English here:

3. WWF is working with two consortiums to develop new tools for companies and investors to assess the alignment of their goals and portfolios to science-based climate scenarios: Science-Based Targets and Sustainable Energy Investment Metrics.

Further information:

Audrey Gueudet
Senior Communications and Media Officer
Climate & Energy
WWF European Policy Office
+32 494 032 027

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