What happened in climate-related financial regulation last month, and what’s coming up. Americas The Federal Reserve will conduct a “pilot climate scenario analysis exercise” of six Wall Street banks in early 2023. Bank of America, Citigroup, Goldman Sachs, JP Morgan Chase, Morgan Stanley, and Wells Fargo will all take part in the exercise. In a […]
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The Investment Case for Climate Opportunities
While asset managers are in the business of growing their clients’ wealth, they’re also increasingly being asked to support climate goals. On paper these two objectives may appear at odds with one another, but in practice there’s plenty of overlap between them. Investing in climate opportunities can yield healthy financial returns and power the low-carbon […]
5 Key Considerations for Retail Companies to Enhance Climate Action
Retail is one the most important contributors to economic growth and development. The sector contributed approximately USD$20trn to the global economy in 2020 and is expected to grow to almost USD$30trn by 2025. The sheer volume of goods and products manufactured, stored, and distributed across retail supply chains also means that the sector will play […]
How Financial Firms Can Navigate Climate Tipping Points
Climate risks will not obey a steady and predictable pattern as the world heats up. Beyond certain temperature thresholds, abrupt shifts in the climate system could occur with far-reaching consequences for the planet, the global economy, and human civilization itself. These “climate tipping points” (CTPs) complicate the climate risk management calculus. As the relationship between […]
How to Kick-Start a Climate Action Plan
Companies big and small are thinking about producing climate action plans. Some are under pressure to do so from regulators or shareholders, while others are being encouraged by large companies in their value chains. Many more businesses may be driven by their values or by more prosaic concerns, like protecting themselves from climate-related financial risks. […]
Financial Institutions Should Wise Up to Climate-Related Sovereign Risks
Climate threats to sovereigns’ creditworthiness are on the rise. Are financial institutions on top of their exposures? Pakistan. China. Kenya. Each country is grappling with the devastating impacts of different physical climate risks — from titanic floods to blistering heat waves. Each nation also provides a drastic example of how climate change can disrupt national […]
Where women lead, money follows
Climate risk regulation rundown: August 2022
What happened in climate-related financial regulation last month, and what’s coming up The US Securities and Exchange Commission (SEC) ended its consultation on a proposed rule to enhance ESG fund disclosures on August 16. The agency received over 170 comment letters from financial industry associations, lawmakers, and non-governmental organizations, among others. A letter from 21 Republican state attorneys-general demanded that the […]
An Economic Slump is No Reason to Skimp on ESG
High inflation and slow economic growth have darkened the outlook for businesses. Big and small companies face higher costs and lower profits, and many are reviewing their expenditures to see where they can save. A recent survey found that investments for improved sustainability and reduced environmental impact are among the most likely to be cut […]
Five Ways Mining Companies Can Engage on Climate, and the Business Case For Doing So
September 21st, 2022 Mining is in a unique position: it has direct or indirect responsibility for more than ¼ of the world’s emissions and also represents a master key to unlock an effective low carbon transition. The industry is under immense pressure from investors, activists and media and governments to lower its emissions and improve […]