Bank of England urged to take lead role in climate change disclosure
(22 May 2018 - UK) Activist investor Christopher Hohn has urged the Bank of England to introduce strict rules around climate change and disclosure, warning that failing to act could endanger the long-term stability of Britain’s banking system.
In a letter to BoE governor, Mark Carney, Mr Hohn argued that while UK banks are exposed to a wide range of “serious climate-related risks” through their loan books, the current disclosure system means there is inadequate information for investors.
The letter said it should be mandatory for banks to compel corporate borrowers to disclose the risks they face from climate change. This should be done in line with guidance from the Taskforce on Climate-related Financial Disclosures.
While the BoE declined to comment on the letter, its governor Mr Carney has repeatedly warned of the damage climate changes could wreak on the economy and the risks to financial stability that might result from a sudden revaluation of carbon-intensive assets.