• Email Us: [email protected]
  • Contact Us: +1 718 874 1545
  • Skip to main content
  • Skip to primary sidebar

Medical Market Report

  • Home
  • All Reports
  • About Us
  • Contact Us

Exclusive: Investors call for governments to toughen climate accounting – letter

September 20, 2021 by David Barret Leave a Comment

September 20, 2021

By Simon Jessop

LONDON (Reuters) – Investors managing more than $2.5 trillion have called on governments to compel companies and auditors to file financial accounts aligned with the world’s net zero emissions target, a letter seen by Reuters showed.

Writing to UK climate czar Alok Sharma ahead of the next round of global climate talks in Glasgow in November, the group said doing so was crucial to clarify the financial impact of climate change and give an incentive to invest accordingly.

Governments should mandate a requirement for companies to make clear the financial consequences of a net-zero pathway and for auditors to call out where companies have failed to do so, the investor group said in the Sept. 14 letter.

It follows a recent study by Carbon Tracker and the Climate Accounting Project that found more than 70% of the world’s heaviest-emitting companies did not disclose the full risks in their 2020 disclosures, with 80% of audits showing no evidence the risk had been assessed.

“Most (companies) continue to use assumptions that presume little or no decarbonisation, and thus report financial results predicated on governments failing to implement their stated commitments and, in some cases, legal targets,” the letter said.

Sharma’s office did not immediately respond to a request for comment.

The upcoming climate conference, dubbed COP26, is seen as the most important since governments originally struck a deal to limit global warming in Paris in 2015, with all parties now being asked to accelerate their efforts https://ift.tt/3tWjHfW.

Britain’s accounting watchdog has already warned companies and auditors to do a better job, while global accounting and auditing standard setters have restated the need to assess material risks, which can include climate risk.

Despite investor bodies representing $100 trillion in assets calling in September for Paris-aligned accounts, the inaction from companies and auditors meant government action was needed, the investor group said.

“If we choose to wait for companies to respond to investor pressure, it could take years to deliver the numbers we require to invest in a way that is aligned with the Paris goals,” the investors’ letter said.

Signatories to the letter include a body representing British local government pensions, Sweden’s AP2 pension scheme and investors including Sarasin & Partners, which coordinated the letter and an accompanying position paper, as well as Candriam and Federated Hermes.

For countries like Britain, which have made reaching net-zero emissions a legal obligation, changing the law around accounting and auditing would be “entirely consistent” with other government efforts, the investor group said.

The stakes are high. Companies such as BP wrote off billions of dollars last year after they lowered long-term oil price assumptions. Without proper accounting, money needed to fund the transition to a low-carbon economy could end up in the wrong place.

“Accounts that leave out material climate impacts misinform executives, shareholders and creditors and, thus, result in misdirected capital,” the investor group said.

(Additional reporting by Nina Chestney; editing by Greg Roumeliotis and Philippa Fletcher)

Source Link Exclusive: Investors call for governments to toughen climate accounting – letter

David Barret
David Barret

Related posts:

  1. JPMorgan appoints Allison Beer as CEO of Chase’s card business
  2. Soccer – Danish defender Jorgensen joins Brentford on year-long deal
  3. Bolsonaro steps back from Supreme Court battle, boosting Brazil markets
  4. Snyk snags another $530M as valuation rises to $8.4B

Filed Under: News

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

  • How Did The Starfish Become A Star? 500-Million-Year-Old Fossil Solves Evolutionary Mystery
  • JWST Has Discovered Its First Exoplanet – And It’s A Baby Saturn-Sized One!
  • Rare “Moonwalking” Killer Whale Behavior Hides Much More Gory Truth
  • Dead Pulsars Are Emitting Radio Waves. Massive “Mountains” Measuring 1 Centimeter Tall Could Be To Blame
  • 40,000-Year-Old Mammoth Ivory Boomerang And Human Finger Hint At Mysterious Prehistoric Rituals
  • 99-Million-Year-Old Amber Fossils Mark The Oldest Known Example Of “Zombie Fungus” Infection
  • Breakthrough Qubit Control Near Absolute Zero Is Scalability Game-Changer For Quantum Computing
  • “On A Timescale Of Millions Of Years”: Scientists Detect Pulsing “Heartbeat” Under Africa
  • Skin Moles: What Are They And When Should You Get Them Checked?
  • 20 New Bat Viruses – Some “Cousins” Of Deadly Hendra And Nipah – Spark Fears Of Human Disease
  • “Nobody Expected This”: Earth’s Rotation Will Speed Up In July And August, Bucking The Downward Trend
  • What Is The “Heat Dome” Causing Baking Temperatures In The Eastern US This June?
  • Over 500 Bird Species At Risk In Next Century As We Face “Unprecedented” Extinction Crisis
  • World First: Mice With 2 Dads Father Their Own Offspring
  • Largest Ever Space-Based Gravitational Wave Observatory Begins Construction
  • Plastic Trash? This Bacterium Can Turn It Into Paracetamol – AKA Tylenol®
  • What Is The Earliest Evidence For Blue Eyes In Humans?
  • Now 124 Years Old, Henry Is The World’s Oldest Known Crocodile – And He’s A Big Boy
  • What Happened When A Kansas Family Lived With 2,055 Brown Recluse Spiders For 5 And A Half Years
  • The Last Thing A NASA Spacecraft Saw Before Plunging Into Saturn
  • Business
  • Health
  • News
  • Science
  • Technology
  • +1 718 874 1545
  • +91 78878 22626
  • [email protected]
Office Address
Prudour Pvt. Ltd. 420 Lexington Avenue Suite 300 New York City, NY 10170.

Powered by Prudour Network

Copyrights © 2025 · Medical Market Report. All Rights Reserved.

Go to mobile version