Climate-related financial disclosures of the Eesti Pank investment portfolio (June 2024)
Some of the most misunderstood risks that companies, organisations and investors all continue to face today come from climate change and the outlook for a transition over several decades to a low-carbon economy. Transparency about exposure to climate-related risks is critical for well-informed decisions to be made about capital allocation, and ultimately for the transition to net zero to be made. The empirical evidence for whether climate-related risks are already being adequately priced by the financial markets is mixed. This lack of clarity will be overcome once universal methodologies for incorporating these risks into financial asset valuation have reached maturity. The key requirement for getting transparent and comprehensive information on the financial impacts of climate-related risks and opportunities is that there must be access to high-quality, timely and reliable climate data.
