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ISO Standard 14097 on climate change and the finance sector

While sustainable finance is a growing field, standards for measuring, reporting, and other frameworks are still in their infancy.

Without agreed-upon standards, investing and financing activities related to climate change run the risk of “green-washing,” leaving investors and regulators with little information about the impact of their activities. In response, ISO (International Standards Organization) Standard 14097 was proposed by the French national standardization body, AFNOR, and approved by ballot in January 2017. The conveners are Stanislas Dupré, CEO of 2DII, and Massamba Thoiye, Manager of the Sustainable Development Mechanism Program of the UN Framework Convention on Climate Change (UNFCCC).

Its objective is to create a standard for measuring and reporting financing and investment activities related to climate change, including:

  1. The impact of investment decisions and related climate actions on greenhouse gas (GHG) emissions and resilience trends in the real economy
  2. The compatibility of investment and financing decisions with low-carbon transition pathways and climate goals
  3. The risk on financial value for owners of financial assets arising from climate-related risk.

Over the course of the four-year project, the expert group will meet 2-3 times per year to develop the standard. The standard is expected to be published in 2021.

For more: https://www.iso.org/standard/72433.html 

 

Note on the funders: This project has received funding via the InvECAT project, which is supported by the European Union’s Horizon 2020 research and innovation program under grant agreement No 785087.

It has also received support from the International Climate Initiative (IKI). The Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) supports this initiative on the basis of a decision adopted by the German Bundestag.