Principle 5: ACCOUNT for your climate action
Be transparent and report, wherever possible, on the climate performance of your institution, including increases in financing of clean energy, energy efficiency, climate resilience or other climate-related activities and investments. Be transparent and report, wherever possible, the climate footprint of the institutions’ own investment portfolio, and how the institution is addressing climate risk.
Principle 5 is about transparency and disclosure of climate information. Transparency and disclosure of climate information provides decision-makers, investors, shareholders and the market in general with critical information that can help drive greater climate action by a wider number of institutions, companies and consumers. Transparency and disclosure can help drive capital flows toward climate-smart activities, and can contribute to efforts to manage climate risks in the financial system as a whole.
Implementing Principle 5 may include the following actions:
- Reporting on climate-related risks and performance
- Disclosing an institution’s climate change financial risk exposure
- Disclosing an institution’s climate-related financial risk management strategy
- Disclosing the volume or share of climate-related activities and investments
- Disclosing the volume of activities with adverse climate impacts
- Disclosing the impacts of climate-related activities and investments
- Disclosing the overall alignment of activities with international climate goals