NGFS Consults on Climate Data Repository and Issues a Report
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.
Related Links
- 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
Featured Experts
James Partridge
Credit analytics expert helping clients understand, develop, and implement credit models for origination, monitoring, and regulatory reporting.
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Hasan Cerhozi
Hasan leads Moody’s Analytics ESG methodology development. He is expert on carbon transition, nature related risks and is a guest lecturer at ESSEC Business school on sustainable finance.
Related Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.