(Bloomberg) -- The European Union will force companies to regularly report how they are adapting to climate change and how much they are doing to stop it.
The EU's executive arm is preparing revisions to its non-financial reporting rules so that firms provide more information on “sustainability risks and opportunities,” Valdis Dombrovskis, the Commissioner in charge of financial-services policy, said in Brussels. The Commission will also support the development of new reporting standards in the region to address an overlap of international frameworks that are confusing to companies and investors, he said.
Along with the EU's taxonomy -- a classification system of what can be considered “green” for investment purposes -- “better corporate information will be the cornerstone of our strategy,” according to Dombrovskis.
Read More: Why EU Climate Weapon Is in the Financial Fine Print
As the EU aims to become the first carbon-neutral continent by 2050, it's also turning to financial regulations to put the quickly growing market of green finance on a more solid footing. A main goal is to establish clear definitions that investors in green bonds and similar products can rely upon. Better corporate information would support that work, Dombrovskis said.
To contact the reporter on this story: Alexander Weber in Brussels at aweber45@bloomberg.net
To contact the editors responsible for this story: Dale Crofts at dcrofts@bloomberg.net, Nikos Chrysoloras
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