Financial regulators attempt to align rules on climate risks
Global regulators published a blueprint to give a "sense of direction" to proliferating initiatives for tackling climate-related financial risks before they fragment markets.
The Financial Stability Board (FSB), which coordinates financial rules for the G20 group of nations, said its "roadmap" seeks to coordinate approaches to disclosures by companies and plug gaps in the data needed to spot financial stability "vulnerabilities" and develop tools to address them.
The roadmap attempts to align rules still in the planning stage between now and 2023 to avoid more divergences between various measures for the same activity.
A patchwork of disclosure methods have prompted a global regulatory initiative to set up an International Sustainability Standards Board (ISSB) to give cross-border investors consistent information.
"The time has come to take this to the next level and ensure that we avoid harmful market fragmentation," said Randal Quarles, the U.S. Federal Reserve Vice Chair who also chairs the FSB.
By Huw Jones, Reuters, July 7, 2021