The call highlights the challenges in developing alignment between global ESG reporting standards.
By Paul A. Davies, Sarah Fortt, Betty M. Huber, Michael D. Green, and James Bee
The European Central Bank (ECB) and the International Monetary Fund (IMF), two of the world’s leading public financial institutions have stressed the importance of consistency in global ESG-disclosure standards in a public message to one of the pre-eminent global standards setters. The call reflects a key challenge inherent in developing a set of ESG-disclosure standards that satisfy all stakeholders, while regulatory developments in this area continue to evolve rapidly worldwide.
Legislators and regulators around the world have long recognised that one of the most effective ways to drive change is by focusing the minds of management — specifically by attaching individual accountability for ensuring that an organisation meets expected standards. Transitioning to net-zero carbon emissions has now become a critical priority for many governments, and the spotlight is shining on the boards of financial institutions and companies to drive that change.