With a growing focus on sustainable finance, and particularly the need for a robust toolkit for climate risk management and disclosure, the Institute of International Finance (IIF) and European Banking Federation (EBF) conducted a joint survey of their members. The survey of 70 financial firms around the world, with total assets of nearly $40 trillion, finds that the streamlining of measurement and disclosure frameworks, and increased international collaboration, are key to strengthening the climate-related risk analysis and reporting toolkit.
Among firms that are not yet disclosing data on financed emissions, more than 50 percent said they are hesitant to do so given the lack of standardized accounting frameworks and data challenges. Encouragingly, 70 percent of all respondents expressed interest the creation of a collaborative, open-source framework to enhance these climate finance tracking and reporting frameworks.
Other key findings include: