25 Nov 2021 10:13

CBR expects disclosure of greenhouse gas emissions to become obligatory

MOSCOW. Nov 25 (Interfax) - Disclosure of information about greenhouse gas emissions by companies will gradually become obligatory, the head of corporate relations development at the Central Bank of Russia (CBR), Andrei Yakushin said.

"Under the law on restriction of greenhouse gas emissions, a number of emitters of greenhouse gas are already required to send their reports to the registry [of greenhouse gas emissions]. Gradually, this will probably encompass all Russian companies," Yakushin said at a RAEX-Europe and AID webinar on sustainable development reporting.

The Task Force on Climate-Related Financial Disclosures (TCFD) has already recommended the publication of information on Scope 1 and Scope 2 greenhouse gas emissions for all companies, regardless of sector, he said. Data on emissions are already being sought by financial institutions, which are now assessing the carbon footprint of their portfolios, he said.

CBR recommendations on nonfinancial reporting published in July are not mandatory and only provide an indicative list of data that it would make sense for public companies to disclose. However, Yakushin said that now he is already inclined to recommend that companies "without fail include absolute and relative greenhouse gas emissions" in the information they disclose.

"There is a very substantial demand in the world for regulatory requirements regarding the disclosure of climate information and I think that the Russian Federation will not escape this process," Yakushin said.

He said the CBR is discussing with trading organizers how to encourage companies to pay more attention to recommendations on nonfinancial reporting. "We'll see, maybe some part of the recommendations will be included in the listing rules of our exchanges in order to compel companies to be more mindful of such disclosure," Yakushin said.

The Moscow Exchange is already thinking about introducing mandatory requirements for disclosure of information on greenhouse gas emissions for public joint-stock companies from the first and second listings, the exchange's director of relations with issuers, Natalya Loginova said earlier.

The federal law on the restriction of greenhouse gas emissions will require major emitters of greenhouse gases to report on their emissions starting January 1, 2023. The carbon reporting data will be collected in the greenhouse gas emissions registry.