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BoE must make climate-related risk disclosure mandatory, activist investor says

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BoE must make climate-related risk disclosure mandatory, activist investor says

Activist investor and TCI Fund Management Ltd. head Christopher Hohn has urged Bank of England Governor Mark Carney to mandate that banks disclose details of their lending exposure to climate-related risk, the Financial Times reported.

"Failing to act risks endangering the long-term stability of the U.K. banking system. It may also expose banks to litigation for inadequate disclosure under existing law," Hohn wrote in a letter to Carney. A change in disclosure rules should be guided by the Taskforce on Climate-related Financial Disclosures, a global initiative that urges companies to voluntarily disclose the potential effect of climate change on their business, he added.

Carney is a member of the taskforce, the FT noted. Hohn acknowledged Carney's efforts to raise awareness of climate-related risk, but said those "must now urgently be translated into concrete and mandatory actions."

Hohn said state-owned Royal Bank of Scotland Group PLC should serve as an example, with its board acting independently to require borrowers to set out climate-related exposures, according to the report.