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FSC issues climate disclosure guidance to fund managers

Mike Taylor3 August 2022
ESG investment

The Financial Services Council (FSC) has issued guidance for fund managers around climate change aimed at setting out principles for fund managers to follow to ensure climate-related disclosures to consumers are accurate and backed by evidence.

The guidance starts from the premise that “fund managers making net zero commitments should be able to demonstrate their pathway to meeting the commitment”.

Launching the guidance, FSC chief executive, Blake Briggs said it it demonstrated the funds management industry’s commitment to addressing climate change by setting expectations for the industry when setting net zero targets, labelling investment products and fulfilling their legal obligation to disclose climate-related risks.

“The Australian funds management industry takes the challenge of climate change seriously, along with its role in allocating capital to facilitate the transition to a low carbon economy,” Briggs said.

“The Glasgow Financial Alliance for Net Zero estimates $4.5 trillion USD a year from 2026 is required to transition the global economy to net zero by 2050.

“Investment funds are playing a vital role in this economic transition by working with their portfolio companies to adopt lower emissions practices.

“The FSC’s Guidance for fund managers is a signal to Government, regulators and consumers the Australian investment community sees acting on climate change risk is a top priority and is taking a leadership position on emissions reduction and meeting net zero targets.

“The FSC wants consumers to have confidence fund managers who set net zero targets are assessing their portfolios with robust science-based methodology and are working with companies they invest in to reduce emissions.”

 

Mike Taylor

Mike Taylor

Managing Editor/Publisher, Financial Newswire

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