U.K. Presses G-7 to Tighten Rules on Reporting of Climate Risks

(Bloomberg) --

Britain pressed the Group of Seven nations for an agreement that would require companies to report more of the climate-related risks they face, aiming for a deal on the issue next week.

U.K. Chancellor of the Exchequer Rishi Sunak called on the other countries to ensure global financial markets play their part in the transition away from fossil fuels and toward the goal of “net-zero” emissions.

His remarks followed a virtual meeting of G-7 finance ministers and central bankers ahead of an in-person gathering in London starting on June 4. The U.K. holds the G-7 presidency along with a major round of talks on the environment later this year and is hoping for a G-7 agreement this week that would build political momentum on the issue.

The ambition is to ensure that the biggest companies report annually on their exposure to risks and opportunities associated with climate change. Britain has already promised to follow guidelines first set out by the Task Force on Climate-Related Financial Disclosures by 2025.

Read More: U.K. Is Pushing for G-7 to Adopt Mandatory Climate Reporting

The Chancellor “pressed for action that will ensure global financial markets play their part in the transition to net zero, such as improved climate-related financial disclosures and support for the development of international sustainability-related financial reporting standards,” the U.K. Treasury said in a statement on Friday.

Speaking after the virtual meeting, Japanese Finance Minister Taro Aso indicated an agreement was far from secured.

“I can’t comment on what other nations have said, but we’re not quite at a stage of discussions where we’ve agreed to make disclosures mandatory,” he said. “It’s true that in Europe there are a lot of voices pushing for this. But there’s no point in just a few countries doing this. It needs to be discussed overall.”

Michael R. Bloomberg, the founder and majority shareholder of Bloomberg LP, the parent company of Bloomberg News, is the chair of TCFD.

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