It is imperative that current economic recovery efforts, both by the public and private sector along with governance processes are required to mainstream climate risks. Explain (200 Words)
Refer - Financial Express
Enrich the answer from other sources, if the question demands.
IAS Parliament 3 years
KEY POINTS
· Available climate data supports an increase in the magnitude and frequency of climate-linked events, projected to further affect agriculture productivity, impact infrastructure assets and services.
· Globally, the private sector has put its weight behind the Task Force for Climate Related Financial Disclosures or TCFD.
· TCFD is seen as a key platform and framework for businesses to assess, manage, and disclose the financial impacts of climate change.
· In India, 43 companies have signed up for TCFD, with 72% of the Indian signatories coming on board in 2020 and 2021.
· Moreover, sustainability reports are largely disparate and do not allow for any comparability or industry bench-marking.
· Finally, very few companies are quantifying their current and future climate risks in financial terms.
· SEBI released its latest Business Responsibility and Sustainability Reporting (BRSR) format, and RBI joined the Central Banks and Supervisors Network for Greening the Financial System (NGFS).
· The BRSR guidelines, applicable to the top-1,000 companies by market capitalisation, require companies to disclose their energy- and water-usage, and report plans around GHG emission reduction.
· In addition, RBI’s NGFS membership should be the first step for the central bank on applying global best practices on the management of climate risk for the financial sector.
· Building company resilience to climate change should be viewed as a shared mandate for a more resilient economy.
AVANTIKA ROUT 3 years
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IAS Parliament 3 years
Avoid listing out points and try to explain them. Keep Writing.
