The London Stock Exchange (LSE) has launched a Climate Transition Offering, providing its listed companies with guidance on integrating climate risks and opportunities.
The move makes the exchange the first to publish climate reporting guidance based on the United Nations Sustainable Stock Exchanges Model Guidance on Climate Disclosure, which is in line with the Taskforce for Climate-Related Financial Disclosures recommendations.
The exchange’s climate reporting guidance is tailored to the UK regulatory and policy environment and will support companies to integrate climate risks and opportunities into operational decision making. It will also aid in reporting carbon performance.
In addition, the LSE has introduced climate governance scores for over 400 issuers as a private educational resource. The aim is to help them understand the key climate metrics that investors are focused on as well as identify areas of improvement and assess their performance against industry peers.
Based on the Transition Pathway Initiative‘s management quality score methodology, the assessments will account for a company’s carbon management practices and incorporation of climate changes considerations in their business strategy.
“Investors are increasingly choosing to allocate capital to companies with clear frameworks for managing climate-related risks and opportunities,” said Julia Hoggett, CEO of London Stock Exchange.
She added, “While many FTSE 100 companies have already taken a leadership position by committing to net zero by 2050 and before, the London Stock Exchange is home to companies at varying stages of the climate transition.
“Climate change represents the greatest challenge of our time, and it is essential that the financial market ecosystem supports and stimulates the action necessary across the economy to meet that challenge.
Our new Climate Transition Offering launched today will help issuers understand how investor’s view their performance on the transition and facilitate change by providing an action-orientated climate reporting framework aligned with global standards.”
©Markets Media Europe 2021