LONDON, May 24 (Reuters) - Climate-related company disclosures being applied across the world must have a common thread of comparability to give confidence that the objectives of a net-zero economy can be reached, Bank of England Governor Andrew Bailey said on Wednesday.
Disclosure standards are being finalised by the European Union and United States, and by the International Sustainability Standards Board (ISSB) on the global level, which Britain will apply.
How ISSB norms will be applied in different parts of the world will also differ, Bailey said.
"I emphasise strongly... there has to be a spine running through it, if you like, a common spine with sustainability and disclosure standards, which means that there is not only broad comparability but broad confidence that we are achieving these objectives," Bailey told a Net Zero Delivery summit in London.
Comparability is fundamental to ensure reliability of information and to protect against abuses, Bailey said.
The BoE has already undertaken an exploratory review of how banks and insurers were confronting climate change, which will affect the value of their assets.
Bailey said it showed the "financial sector has some way to go in terms of understanding the real needs" of transition to a net zero economy.
(Reporting by Huw Jones; editing by William James and Kim Coghill)
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