Barry leads global call for companies to disclose climate risk

Barry has coordinated a joint letter from over 140 Parliamentarians from 34 countries, who have written to the world’s stock exchanges calling for stronger disclosure of financial risks related to climate change. It was published in The Times

The letter, sent to stock exchanges worldwide, highlights the work of the Financial Stability Board’s Task Force on Climate-Related Financial Disclosures and urges better practice on risk reporting requirements.


Barry Gardiner, the UK Shadow Secretary for International Trade and Shadow Minister for International Climate Change, said:

“The risks climate change poses to our financial systems are clearer than ever. The world’s financial systems are only just beginning to focus on the threat to pension funds and other investors from stranded assets and supply chain risks.

Financial institutions must respond responsibly to the work of the FSB Task Force on Climate-Related Financial Disclosures. That is why I and over a hundred and forty other parliamentarians from around the world are calling on stock exchanges and regulators to commit to proper reporting and transparency as part of their disclosure procedures.

“The Paris Agreement has firmly set the trajectory towards a low-carbon world. We must now build a global financial system that helps us transition smoothly to that future.”

 

Notes

  1. The Financial Stability Board’s Task Force on Climate-Related Financial Disclosures (TCFD) was mandated by the G20 to analyse best practice for companies to disclose climate-related financial risk. Set up by Mark Carney, Governor of the Bank of England and chair of the FSB, the Task Force is led by Michael Bloomberg.
  2. The Task Force outlined how increased weather events are increasingly threatening assets and supply chains, while consumption habits and disruptive technologies could leave many assets “stranded”. The pace of change could expose the world’s economies to financial shocks.
  3. After outlining these risks in April, the taskforce is today releasing the second phase of their work: a comprehensive set of recommendations across the investment chain for voluntary reporting of climate-related information by companies and investors.
  4. Full letter text and list of signatories is below.

 

LETTER

To the Chief Executives of all Stock Exchanges around the world

We, the undersigned legislators, recognize that:

The increasing intensity and frequency of severe weather events in all of our countries around the globe is producing ever more tangible destruction of physical and natural assets. The material impacts of these risks are having an increasing and adverse effect on our economies, financial systems and corporate operations.

In order to fulfill the commitments made collectively by our governments in Paris at the UNFCCC COP21, many assets related to a carbon-intensive economic model may currently be mispriced, and may present a financial risk as a “stranded asset”. 

The long-term health of our financial systems depends on a clear and immediate recognition of these threats. In order to make rational decisions about asset allocation, investors require a comprehensive and transparent disclosure of these risks by companies and markets.

This will require consistent, comparable and reliable measurement and assessment.

To this end, we welcome the work and leadership being shown by the G20 FSB Taskforce on Climate-related Financial Disclosures, along with the Securities and Exchange Commission (SEC), in furthering the adoption of clear and robust reporting guidance.

Furthermore, we recognize the critical importance of harmonizing and standardizing such risk reporting guidance across all of the world’s stock exchanges.

We therefore urge you to consider the following:

  1. Promote the adoption of climate-related reporting guidance and disclosure for all listed companies under your jurisdiction.
  2. Commit to implement best international practice in reporting requirements for sustainability and climate-related risks.
  3. Ensure that progress in reporting by companies listed on your exchange is transparently monitored and easily accessible to all stakeholders.

And we ask you to respond to this letter setting out your exchange’s approach to these important matters.

Sincerely,

 

Barry Gardiner, United Kingdom

Graham Stuart, United Kingdom

Caroline Lucas, United Kingdom

Mike Weir, United Kingdom

John Prescott, United Kingdom

Ed Milliband, United Kingdom

Jeremy Lefroy, United Kingdom

Clive Lewis, United Kingdom

Alan Whitehead, United Kingdom

Caroline Flint, United Kingdom

Helen Goodman, United Kingdom

Baroness Meral Hussein-Ece, United Kingdom

Jeremy Lefroy, United Kingdom

Lord Robin Teverson, United Kingdom

Stephen Twigg, United Kingdom

Lisa Nandy, United Kingdom

Angela Rayner, United Kingdom

Rebecca Long Bailey, United Kingdom

Liam Byrne, United Kingdom

Liz Kendall, United Kingdom

Alison McGovern, United Kingdom

Jamie Reed, United Kingdom

Geoffrey Robinson, United Kingdom

Stephen Kinnock, United Kingdom

Nick Thomas-Symonds, United Kingdom

Stephen Timms, United Kingdom

Jonathan Reynolds, United Kingdom

Maria Eagle, United Kingdom

George Howarth, United Kingdom

Albert Owen, United Kingdom

Drew Hendry, United Kingdom

Roger Mullin, United Kingdom

Barry Sheerman, United Kingdom

Andy Slaughter, United Kingdom

Peter Dowd, United Kingdom

Jon Ashworth, United Kingdom

Rupa Huq, United Kingdom

Louise Haigh, United Kingdom

John Mann, United Kingdom

Khalid Mahmood, United Kingdom

Nahim Razzaq, Bangladesh

Nassirou Bako-Arifari, Benin

Lídice da Mata, Brazil

Thèodore Datouo, Cameroon

Marguerite Dissake nee Ekoka, Cameroon

Albert Dooh Collins, Cameroon

Aissa H. Douvaouissa, Cameroon

Banmi Emmanual Dinga, Cameroon

Laure-Pauline Fotso, Cameroon

Mariam Goni, Cameroon

Joseph Roland Matta, Cameroon

Martin Oyono, Cameroon

Haman Paul, Cameroon

Ndam Njoya Tomaino, Cameroon

Jean Jacques Zam, Cameroon

Patricio Vallespin Lopez, Chile

Andrea Molina Oliva, Chile

Magister Abelino Esquivel Quesada, Costa Rica

Oscar Ledesma Zamora, Ecuador

Alemayehu Tegenu, Ethiopia

Satu Hassi, Finland

Joelle Garriaud-Maylam, France

Martine Lignières-Cassou, France

Annalena Baerbock, Germany

Bärbel Höhn, Germany

Gerhard Schick, Germany

Simon Edem Asimah, Ghana

Eva Kaili, Greece

Schmuck Erzsébet, Hungary

István Józsa, Hungary

Stella Bianchi, Italy

Francesco Boccia, Italy

Marco  Causi, Italy

Erica D'adda, Italy

Silvia Fregolent, Italy

Giampaolo  Galli, Italy

Alberto Giorgetti, Italy

Mauro Guerra, Italy

Paolo Guerrieri Paleotti, Italy

Yoram Gutgeld, Italy

Maino  Marchi, Italy

Claudio Martini, Italy

Antonio  Misiani, Italy

Barbara  Saltamartini, Italy

Bruno  Tabacci, Italy

Walter Tocci, Italy

Tomoko Abe, Japan

Tetsuro Fukuyama, Japan

Susumu Hamamura, Japan

Yuriko Koike, Japan

Takashi Kosugi, Japan

Takeshi Maeda, Japan

Hideki Makihara, Japan

Hiroyuki Nagahama, Japan

Masahuru Nakagawa, Japan

Hideki Niizuma, Japan

Tetsuo Saito, Japan

Keisuke Suzuki, Japan

Michiyo Takagi, Japan

Shinako Tsuchiya, Japan

Kaneshige Wakamatsu, Japan

Kenji Yamada, Japan

Kozo Yamamoto, Japan

Shinichi Yokoyama, Japan

Yumi Yoshikawa, Japan

Masayoshi Yoshino, Japan

Samir Murad, Jordan

Wafa Bani Mustafa, Jordan

Billow Kerrow, Kenya

Alain Aoun, Lebanon

Ali Ahmad Bazzi, Lebanon

Henri Helou, Lebanon

Yassine Jaber, Lebanon

Mohammad Kabbani, Lebanon

Atef Majdalani, Lebanon

Ghassan Moukheiber, Lebanon

Ali Osseiran, Lebanon

Serge Torsarkissian, Lebanon

Abdellatif Zein, Lebanon

Edward Dagoseh, Liberia

Ignacio Pichardo, Mexico

Me Salima Faraji, Morocco

Bas Eickhout, Netherlands

Bukar Abba Ibrahim, Nigeria

Ola Elvestuen, Norway

Armando Villanueva Mercado, Peru

Lucie Cissé, Senegal

Mamadou Lamine Thiam, Senegal

Papa Biram Toure, Senegal

Carles Campuzano, Spain

Sujeewa Senasinghe, Sri Lanka

Jitu V. Soni, Tanzania

Samba Jallow, The Gambia

Ekanya Geofrey, Uganda

Violet Akurut Adome, Uganda

Yeri Ofwono Apollo, Uganda

Atim-Ogwal Cecilia Barbara, Uganda

Ajilo Maria Goretti Elogu, Uganda

Lamwaka Margaret, Uganda

Morris Ogenga Latigo, Uganda

Biyika Lawrence Songa, Uganda

Ed Markey, USA

Matt Cartwright, USA

Brian Schatz, USA

Reactions

Please check your e-mail for a link to activate your account.

The Labour Party will place cookies on your computer to help us make this website better.

Please read this to review the updates about which cookies we use and what information we collect on our site.

To find out more about these cookies, see our privacy notice. Use of this site confirms your acceptance of these cookies.