Stock Exchange Regulators Back Global Climate-Reporting Rules

livemint.com:

Regulators of the world’s top stock exchanges gave their backing to the international climate-reporting standards framework Tuesday, adding momentum to efforts to establish the rules as the global baseline. The International Organization of Securities Commissions, known as Iosco, endorsed the International Sustainability Standards Board’s recently published climate reporting standard. Iosco’s board of 35 securities regulators—which includes the U.S.

Commodity Futures Trading Commission and Securities and Exchange Commission—endorsed the reporting framework which includes requirements to report so-called Scope 3 emissions in the supply chain and material information on climate-related risks and opportunities. “Iosco has done a thorough analysis of the final standards proposed by the ISSB and has decided to endorse those standards as fit for purpose for capital markets," said Jean-Paul Servais, chair of Iosco. While not surprising, the official endorsement marks an important milestone in efforts to reduce the alphabet soup of voluntary climate-reporting standards and instead provide investors and other stakeholders comparable, reliable information on companies’ material climate risks and opportunities.

Iosco’s more than 130 member jurisdictions oversee a total of more than 95% of global market capitalization. The SEC is completing its own set of requirements for U.S.-listed companies which are expected to come in the second half of this year and to require less disclosure than the ISSB’s recommendations. Meanwhile, the EU’s new standards require more information from both EU-based companies and some international businesses with local operations.