Sovereign Climate and Nature Reporting : Proposal for a Risks and Opportunities Disclosure Framework
The purpose of this report is to raise awareness and initiate a discussion on the need for sovereign sustainability reporting. The proposed sovereign climate and nature reporting framework would assist sovereigns looking to attract investment by en...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2022
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| Online Access: | http://documents.worldbank.org/curated/undefined/099615001312229019/P170336065a94c04d0a6d00f3a2a6414cef http://hdl.handle.net/10986/36894 |
| Summary: | The purpose of this report is to
raise awareness and initiate a discussion on the need for
sovereign sustainability reporting. The proposed sovereign
climate and nature reporting framework would assist
sovereigns looking to attract investment by enabling them to
produce comprehensive, regular, standardized, and,
eventually, forward-looking disclosures of their climate-
and nature related risks and opportunities. Sovereign
reporting would help meet the needs of investors who are
increasingly requesting such disclosures for all asset
classes in their portfolios so that they can measure
portfolio alignment with the Paris Agreement. This report
discusses five fundamental questions regarding sovereign
climate and nature reporting: (a) why is a sovereign
reporting framework needed;(b) what is required to develop a
reporting framework for sovereigns; (c) how is materiality
important in driving a reporting framework for sovereigns;
(d) what is the potential for unintended consequences; and
(e) what are the recommended next steps to develop and
implement a reporting framework for sovereigns Sovereign
reporting needs its own approach and framework. A customized
approach suited to the specifics of sovereign reporting is
recommended. This could build on the core elements and
underlying principles of existing corporate-focused
frameworks such as the Taskforce for Climate-related
Financial Disclosure (TCFD). Other frameworks such as
context-based performance accounting and reporting
frameworks and environmental economic approaches could also
be drawn upon, such as the UN System for Environmental
Economic Accounting (SEEA) framework. Annex A to this report
presents a draft example of a sovereign climate and nature
risk and opportunities reporting framework as a starting
point for discussion (noting that it is not intended as a
fully developed template or blueprint). |
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