NewsIn The NewsPRESS RELEASE: Financial Regulators Join Climate Change Debate in Paris

Press Release

December 9, 2015

Financial Regulators Join Climate Change Debate in Paris

FSB and Michael Bloomberg Must Ensure Diverse Climate Risk Task Force to Avoid “Lowest Common Denominator” Outcomes

Washington, DC – The Financial Stability Board (FSB), a global body of financial regulators, has launched a Task Force on Climate-related Financial Disclosures (TCFD). Michael Bloomberg was selected to lead the Task Force, which will include 10 other individuals who will determine its high-level objectives. The Task Force, expected to expand to 30 members in March 2016, will develop specific recommendations for consistent disclosure of climate-related risks facing the financial industry.

Rev. Seamus Finn O.M.I., Chair at the Interfaith Center on Corporate Responsibility (ICCR) and New Rules for Global Finance, a research and advocacy organization that promotes transparency and accountability at international institutions, stated:

“We are encouraged that the FSB has joined the climate change debate through its advocacy for greater transparency in global financial markets and institutions.  This Task Force could help identify and measure the financial costs and risks associated with climate change and would catalyze a shift in the activities of investors, insurers and market participants across sectors.”

Implementation of Task Force recommendations will be voluntary, but the FSB expects the outcomes to help establish benchmarks for best practices. The success of a similar Task Force set up by the FSB in 2012, the Enhanced Disclosure Task Force (EDTF), appears to have given the FSB confidence in this approach, and provided guidance for this new Task Force. The EDTF, which submitted its most recent update to the FSB on December 4, reported progress in implementing its voluntary risk disclosure practices. Jo Marie Griesgraber, Executive Director at New Rules for Global Finance, agreed but cautioned:

“The EDTF has led to some positive changes in risk disclosure, however it’s important to keep in mind that the recommendations in the report were developed ‘by the industry, for the industry’. We strongly urge the FSB, and Michael Bloomberg, to include non-industry experts and leaders on this new Task Force.”

Ms. Griesgraber added:

“Greater diversity on this new Task Force will be essential to avoid lowest common denominator outcomes, which is something we cannot afford when it comes to climate change. We hope Mr. Carney and Mr. Bloomberg will recognize the importance of diverse views in this arena.”

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Notes to Editor:

New Rules for Global Finance is a 501(3)c non-profit organization that promotes reforms in the rules and institutions that govern international finance; in order to support inclusive and sustainable economic development.

For more information, please visit www.new-rules.org

Contact:

Nathan Coplin

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