A group of large financial institutions has released a new set of guidelines for reporting the impact of climate change, indicating that pressure on business leaders to address the issue will persist despite policy moves in Washington.
The voluntary guidelines were released this morning by a task force created in 2015 by the Financial Stability Board, an international body based in Switzerland that makes recommendations about the global financial system.
More than 100 companies, with a combined market capitalization of $3.3 trillion, provided letters of support for the new guidelines, including Bank of America, BHP Billiton, Citigroup, Dow Chemical, DuPont, Eni, Glencore, Morgan Stanley, Pepsi, Salesforce, Shell, Virgin Group and UBS.
The recommendations cover four key areas, including governance, strategy, risk management and metrics & targets.
“Climate change presents global markets with risk/opportunities that cannot be ignored, which is why a framework around climate-related disclosures is so important.”
“Climate change presents global markets with risks and opportunities that cannot be ignored, which is why a framework around climate-related disclosures is so important,” the task force’s chairman, Michael Bloomberg, said in a statement.
The release of the guidelines comes just over three weeks after Donald Trump pulled the U.S. out of the Paris Accord on climate change, heralding a likely easing of regulations designed to limit companies’ carbon emissions.
Ongoing pressure from investors to address the issue, however, was demonstrated last month at ExxonMobil’s annual shareholder meeting, when 62% of shareholders passed a resolution calling on the world’s biggest listed oil company to better explain how it was confronting global warming.
Research by PwC indicates that CEOs are split on the issue of climate change, with some proposing a more urgent response than others. The shifting mood of large investors like BlackRock and Vanguard, however, could force many CEOs of public companies to take a close look at the reporting guidelines released today.
The guidelines, which can be viewed in full here, outline reporting recommendations on multiple climate-related metrics, including carbon emissions, energy and fuel use, water use, land use and location relating to coastal and flood zones.
Mark Carney, who is chairman of the Financial Stability Board and also governor of the Bank of England, said the recommendations were developed “by the market for the market”.
Their widespread adoption will help investors, banks and insurers “minimize the risk that market adjustments to climate change will be incomplete, late and potentially destabilizing,” he said.
Chief Executive Group exists to improve the performance of U.S. CEOs, senior executives and public-company directors, helping you grow your companies, build your communities and strengthen society. Learn more at chiefexecutivegroup.com.
0
1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
