Under capitalism, most economic activity - like building renewable energy plants or setting up a sustainable cafe - is funded by investors, at least initially. They often use financial markets to find projects to invest in and receive a return on that investment. This requires accurate and timely information on these investments. 

As the climate emergency affects economies more, investors need information on how climate risks will impact their current and potential investment decisions. Climate- and nature-related risk disclosure frameworks guide companies on what information they need to publish about their climate risk vulnerability to help investors make decisions. 

This information should help investors better recognise the benefits of decarbonisation and nature restoration and the risks of unsustainable investments, and encourage companies to identify and reduce their climate-related risks. It is hoped that this will guide investment toward climate action. 

But many governments and businesses are over-reliant on these disclosures. They can assume that the only thing standing in the way of sustainability is a lack of information, and fail to make proper regulations and investments. Power, culture, and vested interests are other barriers to action. Disclosures also assume that information on the risks of the climate and ecological emergency can be accurate and timely. Instead, these risks are very uncertain and unpredictable. 

While more and better information might increase green investment, this doesn’t replace real action on reducing fossil fuels, and green investment may still not come fast enough or be fairly distributed.

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• The Task Force on Climate-Related Financial Disclosures (TCFD) and the Taskforce on Nature-Related Financial Disclosures (TNFD) are developing disclosure frameworks for climate and ecological information.

• Green credit guidance: a green term funding scheme for a cooler future (New Economics Foundation)

Positive Money is a research and campaigning organization that reimagines how money, banks, and finance can work better for the wellbeing of people and the planet.