ICGN Lays Out Investor Expectations on Climate-related Reporting

The International Corporate Governance Network’s (ICGN) has outlined investor expectations on whether climate-related matters are adequately reported in financial statements. In its latest Viewpoint, ‘reflecting climate-related matters in financial statements’, the network examines why accounting for climate change matters to investors, identifies potential obstacles impeding progress, and makes suggestions for constructive dialogue between investors and companies on the topic. ICGN stressed that for “several years” investors have called on companies to account for material climate-related risks and decarbonisation commitments in their financial statements. ICGN is led by investors responsible for US$77 trillion in AUM, and has the objective advancing global corporate governance and investor stewardship standards to pursue long-term value creation that contributes to sustainable economies, societies, and the environment. The Viewpoint draws on the network’s Global Stewardship Principles, which offer an international framework for investors to implement their fiduciary obligations on behalf of clients and beneficiaries. The Principles are to be reviewed next year. Séverine Neervoort, Global Policy Director at ICGN, said: “Company boards have a key oversight role to play and should encourage the implementation of best practices, even if this is a complex and fast-evolving field, with uncertainties. We encourage boards to be transparent about the challenges companies are facing in their journey towards better climate reporting.” 

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