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 […]
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Rabobank’s woes herald a new phase in climate transition risk management
The creditworthiness of high transition risk borrowers may degrade as more ambitious climate policies are enacted Rabobank is the new poster child for climate transition risk in the financial system. In response to the Dutch government’s June announcement of a plan to slash nitrogen oxide emissions from the country’s livestock sector, the lender downgraded the […]
Weekly round-up: August 15-19
The top five climate risk stories this week 1) Republicans blast ESG fund rules Proposed rules that would force US investment funds to disclose ESG-related data and publish their emissions are “illegal and misguided,” Republican state attorneys general say. In a letter sent Tuesday to the Securities and Exchange Commission (SEC), the attorney general of West Virginia, […]
Why climate models struggle with acute physical risks
Climate models have a major blind spot: they can’t see extreme weather-related risks. This is a big problem for financial institutions, since these kinds of threats — also known as acute physical risks — could hammer their investments and sap their capital. But despite their shortcomings, financial supervisors are already using these flawed models to […]
US Inflation Reduction Act Unlocks Climate Opportunities
A brighter climate future is here. On August 16, US President Joe Biden signed the Inflation Reduction Act, which includes USD$369bn in climate change and clean energy investments. That’s the most the US government has ever spent to address global warming. Expert analysis shows the legislation should cut US emissions by around 40% by 2030, relative to […]
Weekly round-up: August 8-12
Weekly round-up: August 8-12 1) GFANZ publishes guide on portfolio alignment metrics The world’s largest climate finance initiative wants to improve how financial institutions track the alignment of their portfolios with net-zero goals. On Tuesday, the Glasgow Financial Alliance for Net Zero (GFANZ) proposed new and enhanced guidance on developing and using portfolio alignment metrics (PAMs). These metrics […]
Climate Trends: Manifest Climate Data Reveals Gaps in Companies’ Emissions Disclosures
Companies are under growing pressure from investors, customers, and regulators to disclose their greenhouse gas (GHG) emissions. This data is essential for understanding just how much each business contributes to climate change and for establishing credible emissions-reduction targets, a key part of any organization’s broader climate plan. It also allows companies to benchmark their progress […]
GFANZ Wants to Whip Portfolio Alignment Metrics into Shape
Our climate future is unknown territory. Still, financial institutions want to plot a course to its coolest fringes. Hence the buzz over portfolio alignment metrics (PAMs) — the measurement systems firms can use to understand what investment, lending, and underwriting activities support a 1.5°C warming pathway. Banks, asset managers, asset owners, and insurers want PAMs […]
Weekly round-up: August 1-5
The top five climate risk stories this week 1)Worst-case climate scenarios “dangerously underexplored” Extreme climate change outcomes are “under-studied and poorly understood,” a group of scientists have warned. In a paper published Monday, they argue that a “Climate Endgame” research agenda is needed to explore the worst-case outcomes of catastrophic global warming. These include famine and undernutrition, […]
Weekly round-up: July 25-29
The top five climate risk stories this week 1) Banks falling short of Paris climate goals Banks have to speed up their decarbonization efforts if they are to align with climate pathways set out by the 2015 Paris Agreement, an analysis conducted by two investor groups shows. The Institutional Investors Group on Climate Change (IIGCC) […]