Asian investor coalition says it supports SEC’s ISSB-based disclosure requirements

Asia Investor Group on Climate Change (AIGCC), an investor coalition with combined funds-under-management of $36tn, has submitted a response to the US Security and Exchange Commission (SEC) in support of the SEC’s disclosure proposal. The response from AIGCC focused on the SEC’s use of International Sustainability Standards Board (ISSB) standards for defining and measuring climate risk. According to AIGCC, financial regulators across Japan, Hong Kong and Singapore have expressed support for ISSB standards which are expected to become global baselines. The AIGCC response states,” AIGCC consents with the proposal that climate disclosure helps investors verify the credibility of institutions and companies’ commitments related to climate change, which is vital to investors’ assessment of risks. Moreover, improved transparency through scenario analysis disclosure requirements will reduce market uncertainty among investors and enhance investees’ access to capital by showing their strategies in a net zero pathway”.