Commenting on the IFRS announcement on the International Sustainability Standards Board, Chris Cummings, Chief Executive of the Investment Association said:
“As an industry which invests in companies around the world on behalf of both UK and overseas savers and investors, investment managers have a vital role to play in the shift to a more sustainable global economy. Today’s announcement by the IFRS, including the creation of a new International Sustainability Standards Board; the commitment to ensure strong investor representation within the Board’s governance structure; the publication of prototype climate disclosure requirements, leveraging the knowledge and expertise of existing reporting bodies, are therefore very welcome. Investment managers need high quality and comparable data on the risks that companies face from climate change, and these measures will be pivotal for investors and companies to work together to achieve the Paris Agreement targets.
“This is why we also welcome the Chancellor’s announcement that UK listed companies will be required to produce Transition Plans by 2023 as part of the UK becoming the first net zero financial centre. Investors want to understand the steps which companies are taking now to transition their businesses to net zero, so these new disclosure requirements will give investors more visibility on the immediate actions their investee companies are taking.”