The Network for Greening the Financial System (NGFS) seeks consultation on repository of climate data needs and available sources, with the comment period ending on May 06, 2022. NGFS also published a report on enhancing market transparency in green and transition finance.
The consultation on repository of climate data seeks feedback on the directory web interface through a short online questionnaire. The repository is intended as a directory of available climate data based on specific needs and stakeholders use cases highlighted in the “Progress report on bridging data gaps,” which was published in May 2021. The directory is a useful tool for financial sector stakeholders to identify important climate data sources and identify data gaps in a systematic way; however, it does not offer direct access to actual climate data. NGFS has identified six stakeholder categories and six main use cases, along with metrics and raw data items, and will focus on enhancing the directory, taking on-board suggestions and comments received after an outreach to methodologies providers, as well as designing a user-friendly web interface. NGFS will also finalize the directory by seeking feedback from the data users and providers on the format and functionalities of the current directory web interface and the contents of the directory with respect to climate data sources, including potential data gaps and other unidentified sources. Going forward, NGFS plans to propose practical solutions and policy recommendations to bridge the climate data gaps and maximize the availability of climate data for the financial sector.
The report on enhancing market transparency examines the state of play and key key challenges surrounding market transparency issues related to taxonomies, green external review and assessment, and climate transition metrics, frameworks, and market products. The report highlights the following key general observations relevant to policymakers:
- Enhance market transparency about issuers’ and investors’ green and transition objectives. Taxonomies and climate transition frameworks are most effective when they are tied to clear objectives and science-based net zero targets.
- Facilitate comparability and interoperability of taxonomies, frameworks, and principles. A common understanding of criteria, targets, and methodologies is critical to avoid divergences in assessments in green external reviews.
- Accelerate efforts on disclosure and reporting. Enhanced disclosure and reporting, based on global disclosure standards with industry-specific metrics, will form the basis for consistent, comparable, and reliable climate data, transition plans, and investment products.
- Press Release on Climate-Data Repository
- Progress Report on Bridging Data Gaps (PDF)
- Press Release on Market Transparency Report
- Market Transparency Report (PDF)
Keywords: International, Banking, ESG, Climate Change Risk, Climate Data Repository, Green Finance, Market Transparency, Taxonomy, Sustainable Finance, Data Gaps, Disclosures, Reporting, NGFS, Headline
Dr. Denton provides industry leadership in the quantification of sustainability issues, climate risk, trade credit and emerging lending risks. His deep foundations in market and credit risk provide critical perspectives on how climate/sustainability risks can be measured, communicated and used to drive commercial opportunities, policy, strategy, and compliance. He supports corporate clients and financial institutions in leveraging Moody’s tools and capabilities to improve decision-making and compliance capabilities, with particular focus on the energy, agriculture and physical commodities industries.
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