An accounting body has highlighted that investors are seeking climate data that is currently excluded by U.S. regulations. This information was shared in a recent report that emphasized the growing importance of climate-related disclosures for investors.
The report pointed out that while U.S. regulations do not mandate the disclosure of certain climate-related data, investors are increasingly interested in this information to make informed decisions about their investments. The lack of required climate disclosures in the U.S. could potentially hinder investors from fully assessing the risks and opportunities associated with climate change.
According to the accounting body, there is a global trend towards greater transparency and disclosure of climate-related information. Investors are looking for data on how companies are managing climate risks, their carbon footprint, and their overall sustainability practices.
By excluding certain climate data from regulatory requirements, the U.S. may be falling behind in meeting the evolving needs of investors who are placing greater emphasis on environmental, social, and governance (ESG) factors. The report suggests that aligning U.S. regulations with international standards on climate disclosures could better serve the interests of investors and promote more sustainable investment practices.
As climate change continues to pose significant challenges to businesses and economies worldwide, the demand for comprehensive climate-related information is expected to increase. Providing investors with the necessary data to assess climate risks and opportunities can help drive more responsible investment decisions and contribute to a more sustainable financial system.
