Without agreed-upon standards, investing and financing activities related to climate change run the risk of greenwashing, 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.
Its objective is to create a standard for measuring and reporting financing and investment activities related to climate change, including:
- The impact of investment decisions and related climate actions on greenhouse gas (GHG) emissions and resilience trends in the real economy
- The compatibility of investment and financing decisions with low-carbon transition pathways and climate goals
- 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 from the European Union’s Horizon 2020 research and innovation programme under grant agreement No 785087.
It has also received funding 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.