And yet the size of the climate challenge requires mobilization of capital far beyond what any government can do:
“The main challenge is to accelerate the energy transition, which requires $4.5T dollars each year. This can only be done by unlocking access to private capital.”
#1. A Global Reporting Framework
The International Finance Reporting Standards (IFRS) announced a reporting framework for sustainability, which integrates reporting of emissions, water, energy and waste into the standards and flows of financial accounting.
#2. To be Adopted by All Companies
The Climate Disclosure Project (CDP), which led the way with soliciting businesses to provide detailed emissions reports and underlying data, announced it will adopt the IFRS standards.
#3. With Clear Accounting Methods
The accounting industry leadership, under the umbrella of COSO, will be issuing an updated report this year on the methods for integrated controls that increase trust and confidence in sustainability data reported.
#4. And Greater Transparency
Michael Bloomberg, who made his fortune from increasing data transparency throughout financial markets, announced three initiatives to bring transparency to sustainability data
(emphasis added)
A huge round of applause for the global accounting leadership. Their work enables everyone to speak the same emissions language and increases trust and confidence in emissions data for all. And given the fast pace, there is no need to wait, we’ll see the power of these announcements during 2023 as every business adopts these standards. The great acceleration is on!
