IIF says policy fragmentation slowing sustainable finance
Financial industry group asks regulators and standards boards for greater global consistency around taxonomies, climate-related risk disclosures, policymaking and regulation.
The Institute of International Finance (IIF), which has 450 members from banks to central banks, is calling for greater international alignment of sustainable finance policies and regulation to better support the transition to a sustainable economy.
In a paper published on March 3, the IIF says that some headway is being made on integrating climate risk in the financial sector, but warns that the fragmentation caused by some groups looking to set regional and sector policy is creating confusion and slowing progress.
The report is critical of what it calls the current approach of throwing everything at a wall, and says these fragmented efforts must be honed into a global framework. For example, three multilateral bodies – the Central Banks and Supervisors Network for Greening the Financial System, the Coalition of Finance Ministers for Climate Action and the European Union – are currently working on integrating climate-related financial risk into policy.
Less than a third have adopted climate-risk considerations at all stages of the credit risk process - Moody's
Beneath them is a layer of individual jurisdictions also looking at their own policies.