Why? It provides information to clients and counterparties on the volume of activities with adverse climate impacts. In jurisdictions such as in the European Union, this is asked as part of reporting requirements on adverse sustainability impacts.
How? Institutions may publicly disclose the results of the measurement of the volume of activities with adverse climate impacts. Institutions may choose to report results of this measurement individually or within groups or initiatives of financial institutions. In the case of mandatory reporting, a specific taxonomy may need to be used as a reference and specific requirements may be asked by the regulator.