G20 encouraged toward sustainable finance
G20 countries’ policies need to focus on the role financial markets play in the transition to low-carbon economies, as well as integrating the climate transitions risks into investment decision making, a report published by the OECD said on Monday.
Launched ahead of the October G20 meeting, the report calls the usage environmental, social and corporate governance (ESG) principles in investing the “leading form of sustainable finance for long-term value and alignment with societal values,” while emphasizing the “considerable” challenges that have yet to be overcome for international climate objectives to be fulfilled.
“These competing dynamics and challenges associated with ESG rating and investing could compromise market integrity, erode investor confidence, and mask the extent of environmental and climate-related impacts of investment decisions,” the report concluded.
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