Private companies will face more pressure to disclose how climate change affects their business under a new set of G20-backed global rules that will allow regulators crack down on greenwashing.
Published in late June, the new norms, written by the International Sustainability Standards Board (ISSB) will help stop the flow of trillions of dollars ¿into investments that tout their environmental, social and governance credentials but that do little to help the environment.
Individual countries will decide whether to require listed companies to apply the standards, which build on voluntary ones from the G20’s Task Force on Climate-related Financial Disclosures (TCFD).
About 42% of the world’s top 4,000 companies do not provide data on carbon emissions.
Under the new rules, companies would need to disclosure material emissions, with checks by external auditors.