In an era of enormous opportunities from the low-carbon economy, sustainability disclosure is as important as traditional financial disclosures, and benefits investors and other stakeholders, companies, the economy and the planet. Robust sustainability disclosure is critical to thoughtful decision making by investors, companies and other stakeholders, and helps maintain fair and efficient capital markets.
From corporate boardrooms to stock exchanges to financial regulators worldwide, we have long been committed to increasing transparency and mandating disclosure of sustainability and climate risks at every level of the capital markets. When companies disclose these risks, they provide a critical foundation and framework for investors and other stakeholders to engage with companies and make short- and long-term investment decisions in the global economy.
Our track record of reframing the conversation around sustainability risk disclosure and pushing for mandatory reporting dates back to 1989 when we launched the Global Reporting Initiative, the first global sustainability reporting standard, now used by 10,000 companies worldwide. We guide companies using a framework for corporate reporting known as the Climate Disclosure Standards Board and collaborate with the Global Investor Coalition on Climate Change (GIC) members on consistent, comparable disclosures in financial filings worldwide.
Working with a diverse network of investors, we successfully persuaded the U.S. Securities and Exchange Commission to issue the first-ever disclosure guidance for corporate reporting on climate change risks, and are pushing the agency to improve reporting standards on a broader range of material sustainability risks.
We developed the Investor Listing Standards Proposal, which was submitted to the World Federation of Exchanges, which later launched its Exchange Guidance and Recommendations on environmental, social and governance issues along with recommendations for both stock exchanges and issuers on enhancing existing sustainability programs and reporting best practices. We continue to work with investors, the World Federation of Exchanges and others to encourage stock exchanges worldwide to set minimum requirements for sustainability reporting by all listed companies.
In today’s resource-constrained world, improving the quantity and quality of corporate disclosures is needed now more than ever. Through Ceres Disclose What Matters investors call on companies to provide robust disclosure of material sustainability and climate risks in financial filings. We also encourage investors, companies and governments to support the work of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD), which provides recommendations to advance climate risk disclosure worldwide.