The Network for Greening the Financial System (NGFS) has said financial institutions need more high-quality climate data if they are to sufficiently integrate climate considerations into their operations and risk management practices. “Data is the cornerstone of efforts to address climate risk in the financial system,” said Sabine Mauderer, Chair of the NGFS – a group of central banks and supervisors sharing best practices on environment and climate risk management on a voluntary basis. The information note acknowledged that the measurement, estimation and collection of greenhouse gas (GHG) emissions data remains challenging, but the NGFS Expert Network on Data (EN Data) aims to address those gaps. Measures recommended by EN Data include improving data quality and consistency, harmonising the metrics utilised in reporting standards, encouraging coordination between supervisors and government agencies in the collection and dissemination of emissions data, and intensifying collaboration across public bodies, financial institutions and businesses. “We cannot manage what we cannot accurately measure,” said Li Ming Ong, Co-chair of EN Data. “This rings true for GHG emission data – which is critical to manage emissions towards achieving the net zero target and limiting global warming.” The NGFS said it hoped the note is a useful additional resource for central banks looking to bridge climate-related data gaps.
