There is no longer any question about whether to transition from brown to green finance – only how. Easy access to climate risk data and global regulation promises to help policymakers see the big picture and better understand what is missing in order to make the transition a success.
29 September 2021
It is with this in mind that I am proud to announce Mazars has partnered with OMFIF on the ‘Sustainable finance policy tracker’. The online tool is a simple-to-use resource where practitioners and policy experts alike can monitor the activities of central banks and regulators on sustainability.
Bridging data gaps
According to our 2020 research, most central banks were still at a relatively early stage in how they were planning to respond to climate-related risks. By creating a tool that shows what different authorities are doing we hope to bridge data gaps and boost understanding.
The tool – which you can access here – initially focuses on G20 countries and a handful of other countries; it tracks regulatory and supervisory measures to address climate risks in the financial sector, stress-testing activity, sustainable taxonomies and climate-related disclosures and green bond issuance.
Catalyst for action
Policy and business priorities understandably shifted because of Covid-19, but the pandemic still served as a wake-up call for sustainable finance. We saw how our most established state institutions were vulnerable to massive shocks caused by unforeseen forces. If the setting of the Sustainable Development Goals in 2015 was a paradigm shift in how we view the future of finance, Covid-19 is a catalyst for action.
Positively, we are now seeing climate change stress tests becoming mainstream in many jurisdictions, with the UK and the EU leading. And in June, the G7 backed mandatory climate-related financial disclosures for banks. Also worthy of mention is the latest IPCC report, which delivered its starkest warning yet about climate change and its real world impact.
Putting sustainability at the centre
We will continue to strive at Mazars to help our clients put sustainability at the centre of their business and will be watching closely what comes out of the COP26 climate summit in Glasgow. Taking place next month, COP26 will set the agenda for business, politics and society going forwards. Real progress will depend on participants putting detail and data behind plans for the green transition. Success rests on leaders taking this information and combining it with hard work, sustained commitment, and an ambitious vision.
You can use the Sustainable finance policy tracker by going here.
Rudi Lang, Member of the Group Executive Board at Mazars talked with OMFIF. Watch the interview below.