Investors will want a reasonable level of confidence that the bulk of the losses in the most important institutions have been accounted for and disclosed, that remaining “excess” leverage has been essentially sorted out, and that any remaining downside risks to asset quality stemming from slowing growth in the major countries are manageable and within the set of normal parameter variation that their portfolios can cope with.
Today it represents a clear market trend. This is a good sign that private finance can be mobilised for the purpose of climate action. However, efficient market allocation of investment requires adequate information. In this respect, the situation is hardly satisfactory.