Resource Database

This special report by IEA, part of the World Energy Outlook series, assesses the effect of recent low-carbon energy developments and the INDCs proposed thus far. This report also proposes the adoption of five measures that would achieve a near-term peak in global energy-related emissions while maintaining momentum for stronger national efforts.

This report analyses the extent of the impact of climate change on institutional investment portfolios and identifies a series of pragmatic steps for institutional investors to consider including allocation to climate-sensitive assets and the adoption of an “early warning” risk management process.

How financial institutions can better disclose climate-related physical risks in line with the recommendations of the TCFD.

Physical impacts from climate change such as heat waves, storms, droughts, or sea level rises are already being felt across the globe and will continue to intensify. Financial institutions are exposed to physical climate risks through various transmission channels, which can affect their financial stability.

However, financial institutions have tended to focus their climate-related financial risk disclosures on transition risks such as policy, legal, technology, and market changes, with less granular assessment of the potentially significant and severe direct impacts of climate change. This report assesses the current state of physical climate-related risk disclosures and provides high-level guidance for financial institutions reporting on physical risks in line with the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD).

Based on a review of best practices, regulations, standards, data availability, and technical considerations, this resource provides guidance on the disclosure of physical climate risks in line with the TCFD recommendations. It was developed by UNEP FI and the World Resources Institute (WRI) in response to questions raised by 10 institutions convened by UNEP FI at the Climate Adaptation Summit 2021 who committed to publishing climate-related physical risk disclosures in line with the TCFD.

Read more about the Physical Risks & Resilience Statement.

As the impacts of climate change become increasingly evident, directors of credit unions should recognize climate governance and management as a strategic issue within their institutions. This guide emphasizes the importance of understanding directors’ duties, cooperative principles, and the profound effects of extreme weather events on credit union members. It is a valuable resource for directors in understanding the legal landscape, physical and transition risks associated with climate change, and best practices developed globally. It offers practical suggestions for board oversight and emphasizes the importance of engaging with members to align their credit unions’ commitments with transitioning to a more sustainable economy.

This guide proposes a practical method for evaluating flood risks for companies, in line with the Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). It utilizes the latest knowledge and data available for assessing flood risks. The guide is unique because it includes (1) a method that is consistent with a hydraulic engineering perspective, (2) information that practitioners who are unfamiliar with flood risk assessment can manipulate easily, and (3) countermeasures to deal with flood risks.

The guide provides information to support TSXV-listed boards, management, and professionals in the mining and mineral exploration sector on their path to effective climate governance. It clarifies the legal duties of directors and officers of junior mining companies with respect to climate change; offers insights regarding proposed new regulation; highlights industry guidance on effective climate governance practices; and outlines key questions directors and management should ask themselves to meet regulatory requirements, market expectations, and their fiduciary duties to the company.

The guide provides a comprehensive guide to the current state of the law, the risks and opportunities associated with climate change for the financial sector, best practice guidance developed in Canada and globally on oversight and governance, and a snapshot of the kinds of decisions bank boards are making on their pathway to net-zero emissions.

This document contains an introductory note and a survey of the climate-related policies and practices that have been implemented or are under consideration by governments with regard to their investment treaties. The survey forms part of the 2022 work program on investment treaties and climate change.

Jurisdictions are invited to complete the survey using the Lime Survey application as described in this note by 14 December 2022.
Update: The date for responses was recently extended to 31 January 2023

While financial actors and regulators are gaining experience with scenario analysis, they still face difficulties identifying what should be done to ensure the strategic relevance of the exercise. In particular, as explained in the report, “deep uncertainty” is a key characteristic of transition risks that should be better explored and integrated into decision-making processes through the scenario analysis process.

This report defines six key building blocks of scenario analysis with good principles that financial actors should implement to enable the full integration of transition risk and deep uncertainty in their business strategy. The principles cover technical and organizational aspects. They are summarized as a checklist of questions that financial actors can use to improve their internal approaches and to challenge their service providers.

The report also takes stock of the implementation of the principles by the existing methodological approaches and it proposes actions for a range of stakeholders to make further progress.

I4CE wrote this report as part of the Finance ClimAct European project.

This conference agenda includes descriptions of the themes and issues for discussion considered by governments, stakeholders and experts during an OECD May 2022 public conference.  The Conference considered a new topic —  the application of the art. 2.1(c) finance flows alignment under the Paris Agreement to the 2500 investment treaties in force, as addressed in a separate paper.  It also considered the impact of investment treaties on government “policy space” to adopt new regulations to achieve climate goals, taking account of specificities of the climate crisis.

The videos of the conference sessions on investment treaties and climate change are available here.

This paper considers art. 2.1(c) of the Paris Agreement (finance flows alignment) and the 2500 investment treaties in force. Investment treaties (including investment provisions in trade agreements) typically provide covered investors from all economic sectors with insurance-type coverage for certain risks. The paper describes increasing climate disclosure requirements, the notions of financed and insured emissions, and the growth of public and private sector net zero commitments — including for insurance portfolios. The extensive finance flows associated with investment treaties, their climate impacts and the lack of alignment of investment treaty portfolios of covered investors with climate goals are noted.

The OECD held a public consultation on investment treaties and climate change in Jan.-Mar. 2022 to contribute to on-going government, stakeholder and expert work on those issues. This compilation includes the 40+ submissions received from scholars, stakeholders and others from around the world together with a link to the consultation document.   The submissions also provided background for a public Conference on Investment treaties and climate change in May 2022.