ISSB Climate Standard Has Room for Improvement – NZAOA

The Net Zero Asset Owner Alliance, which manages a combined US$10.6 trillion in assets, has welcomed the International Sustainability Standards Board’s (ISSB) draft climate reporting standard, but identified areas for improvement. The 74 institutional investors acknowledged that the standard is based on “well established” climate reporting concepts, but noted it should go further to “ensure the consistency and appropriate granularity of disclosures”. They said “significant” climate-related risks and opportunities within the draft risks being open to interpretation and therefore inconsistently applied. NZAOA further recommended additional disclosure requirements should be incorporated into transition plans, a common target-setting template should be introduced, and climate scenario analysis should be a requirement in company reporting. The alliance said: “Globally consistent, comparable, and reliable reporting is needed for a clear and accurate picture of an organisation’s progress, and for investors to incorporate this information into investment decisions.” 

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