Japan should lead the way on disclosure of climate risk

Profusion of standards has allowed companies to obscure potential financial impact

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The financial impact of climate stress tests on fossil fuel-related assets should be clarified as the new IFRS standard takes hold. © Reuters

Sachiko Suzuki is Asia climate and energy analyst for Market Forces, a Melbourne-based initiative researching the financing of environmentally destructive projects.

These days, many Asian companies are putting out climate-related information about their operations and investments. But these disclosures often fail to tell investors what they really need to know about the growing financial risks the companies face due to climate change.

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