For the first time, the Group of Seven, or G7, has targeted environmental crimes with the intention to push companies into disclosing their climate impact, agreeing to embed climate change considerations into their decision making.
What is Happening?
- The Group of Seven is an informal club of wealthy democracies consisting of Canada, France, Germany, Italy, Japan, the UK and the US. The heads of government of the member states, as well as the representatives of the European Union, meet at the annual G7 Summit.
- The G7 has also expanded the work of a money laundering and corruption watchdog to root out environmental crimes.
- However, the group stopped short of implementing the UK ambition to get G7 firmer backing for mandatory reporting of climate risks by companies, which central bankers have said would force investors to consider climate change in their decision making. Instead, the group highlighted the UK’s efforts to spur disclosure and set up a task force on nature-related financial disclosures.
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Projections of global warming to 2100 (Source: Climate Action Tracker)
- The UK Chancellor of the Exchequer, Rishi Sunak, said on Twitter he’s “thrilled that the G-7 nations have agreed to follow the U.K.’s example.”
- The goal is to shed light on the activities of companies in the hope that the information will help policy makers and investors put pressure on companies to clean up pollution and stop harmful practices.
- The environmental crimes task force would tackle illicit finance and activities like illegal logging and wildlife tracking.
- The G7 countries encouraged further consultation on a final proposal leading to the establishment of an International Sustainability Standards board ahead of COP26.
- The 47th G7 summit is scheduled for 11–13 June 2021 in the UK. The participants will include the leaders of the seven G7 member states as well as representatives of the European Union.
Featured image by: Flickr