Resisting the fragmentation of climate norms between jurisdictions is “absolutely essential” to ensure that organizations are “fully engaged,” according to Ashley Alder, president of the International Organization of Securities Commissions (IOSCO).
Speaking at this year’s City & Financial Global City Week event, Alder, who is also CEO of the Securities and Futures Commission in Hong Kong, said the regulation should be “consistent enough” because “investors global companies need global comparability “.
“We cannot simply work in jurisdictional silos when the climate emergency does not respect national borders and where emissions in my part of the world are half of the global total.
“The degree of cooperation we have around a […] a sufficient level of consistency, overall around standards, is important, ”Alder added. “The worst outcome will be a totally different approach, creating huge amounts of additional noise in the system. So different frameworks operating in different ways.
Tim Adams, President and CEO of the Institute of International Finance, described the current climate regulatory space as “a patchwork of approaches.”
“At the end of the day, we have to land all these planes in one place at the same time. It will take years, but we need leadership, cooperation, coordination, […] stronger institutions and a shared vision.
Additionally, Dr Steve Waygood, director of responsible investment at Aviva Investors, said that a disconnected approach to climate-related disclosures causes “different information at different times.”
As a result, this causes the data to be viewed as discrete, isolated clusters instead of being able to form a cohesive overall picture, Waygood added.
Emma Rachmaninoff, a partner at Freshfields Bruckhaus Deringer, argued that the energy spent within organizations to differentiate disclosures between jurisdictions could be better spent.
“What is quite difficult is […] the different levels, the reporting frameworks, the adjustments you need to make, as it doesn’t quite match the reporting you already do or the way you apply your clients.
“The energy that is expended on very prescriptive implementation is energy that could be better deployed to put in place a framework that is perhaps more consensual in the markets, or perhaps created internally to fulfill these obligations. in a less prescriptive way. “
However, Anthony Belchambers, chair of the industry advisory group to the APPG on wholesale markets, stressed that global standards are “difficult to achieve because they are always nuanced in their interpretation and always modulated by regional rules. “.