Resource Database

This paper captures the current state of the European banking sector’s response to climate-related risk and the low-carbon transition. It provides share and bondholders in the 15 largest European banks with an overview of where the sector is positioned on climate-related risks and opportunities and the information required to encourage banks to improve their climate-related performance.

This article explores the Climate Linked Credit Analytics tool and how it can help users perform stress testing and scenario analysis. In particular, this article explores how the tool was used with ConocoPhillips to understand how the low-carbon transition might affect the business.

The CRIS method enables the provision of a physical risk rating at both the issuer and portfolio level, incorporating both a climate component and a sectoral and contextual vulnerability component. It allows asset managers and investors to know the level of risk, track it over time and engage with the underlying companies about their vulnerability to climate change.

This initiative is a systems approach, which starts with AYCR1, a mechanism to address the personal mental and physical climate readiness of employees of an organization. It was designed based on cognitive science and gamification techniques to promote behaviour change. The output of which is intended to enable positive spillover into an organization. AYCR2 addresses the value of a robust, credible, and reliable Environmental Management System (EMS), which is anchored in the international standard, ISO 14001. The objective evidence from the EMS enables the organization to respond to granular questions formed from the 11 recommended disclosures from the TCFD under their fours themed headings, as well as other insight that focused on the importance of Board involvement. The intent is to help organizations better manage their activities, products and services to reduce or sequester any environmental issue, while focusing the reporting on climate related risks against the TCFD. It is not essential for an organization to have adopted or certified to ISO 14001, although this international standard serves as the de facto framework, that is already used by thousands of organizations worldwide. ISO 14001 also serves as the EMS base for Responsible Care™ and the EU’s EMAS regulation. AYCR3 takes into account the business and environmental objectives established through the EMS, including the risks and opportunities, to align with the organization’s commitment to the relevant Sustainable Development Goals (SDGs) at the target level. It then connects this information to the over 80 different solutions to reduce or sequester carbon as identified by Project Drawdown. AYCR3 enables practical outcomes to accelerate climate action, with  the ability to establish project level budgeting. AYCR4 receives data from participating organizations, anonymizes and aggregates the data to look for patterns and trends. Weaknesses are identified. If other tools or techniques are needed, these are addressed by first searching for an existing solution option to share with organizations. The second tier is to find a collaborator to help develop a tool or technique to address the organizational weakness(es). The third tier option is to solicit funding to create the tool. The time value to address the system weakness is a critical consideration.

This technical and macro-economic study focuses on light duty vehicles – cars and vans – and the economic impact of the transition to low-carbon vehicles.

The ACT (Assessing low-Carbon Transition) initiative assesses how ready an organization is to transition to this new low-carbon world using a future-oriented, sector specific methodology. It is the natural next step to bring accountability to the growing number of actions that organizations are taking to tackle climate change. ACT has the backing of companies, investors and government departments. Since the launch of the pilot project methodologies have been developed and tested with three trial sectors – retail, auto manufacturers and electric utilities.

To manage Aotearoa New Zealand’s transition to a low-carbon future, every professional financial decision must take climate change into account. How do we manage this transition? How essential is disclosure in achieving this?

For the first part of this roundtable, the panellists discussed pathways to rapidly achieving this goal in the near future with a particular focus on the recommendations of the TCFD. The second part focused on a Q&A.

In this episode of GARP’s Climate Risk Podcast, Rebecca Self, Director of Sustainable Finance at South Pole, discusses three important climate-related issues.

This new analysis provides a way of understanding whether the supply options of the largest publicly-traded oil and gas producers are aligned with demand levels consistent with a 2 degree Celsius carbon budget.

Financial costs of climate change are rising, and investors need more transparent information to manage their physical risks. The European research project ClimINVEST brings together climate scientists and experts and financial actors to collaborate on improved tools and information.

Financial costs of climate change are rising, and investors need more transparent information to manage their physical risks. The European research project ClimINVEST brings together climate scientists and experts and financial actors to collaborate on improved tools and information.

Join our closing webinar on February 17th from 14:30 to 16:00 CET, to get the latest science updates on physical climate risk and from our project capstone report and a showcase of case studies and an online climate indicators platform developed in the project to inform investors’ risk management processes. We will also have a conversation with investors in France, the Netherlands and Norway who will share insights and experience on physical climate risk assessment in practice.

Link for more information and to register for the webinar: https://www.cicero.oslo.no/en/climinvest/invitation-to-webinar-17-february-physical-climate-risk-and-finance