The Rise of Green Finance in Europe by Marco Migliorelli & Philippe Dessertine

Author:Marco Migliorelli & Philippe Dessertine
Language: eng
Format: epub
ISBN: 9783030225100
Publisher: Springer International Publishing

TEG Report on Climate-Related Disclosure

The TEG published a Report on Climate-related Disclosures42 as part of its mandate and following feedbacks from stakeholders. In TEG’s view, climate-related disclosure should be open-ended while enabling horizontal and vertical comparability, namely, among companies and of a company over time (TEG 2019a). In Table 6.5 the benefits of environmental reporting according to TEG are reported. The TEG classifies three types of possible disclosures (TEG 2019a): those that all companies should disclose (type 1), those that companies should consider disclosing (type 2) and those that companies may consider disclosing (type 3).43 In this respect, key performance indicators (KPIs) should be tailored to official goals to track the contribution to sustainability goals. Nevertheless, concerns can arise for some widely used KPIs, such as the Green Bond Ratio44 and the Green Debt Ratio,45 because of their simplicity and lack of depth. Complementing information based on best practices and overall frameworks is hence encouraged. The TEG also published a summary of comments received from qualified respondents in February 2019, mostly organisations and companies (80.6%). Respondents called for lower levels of granularity in the early phase, clearer links among targets and KPIs, more sector-specific guidance and more clarity about materiality.Table 6.5Main benefits of environmental reporting

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