Two recent papers offer contrasting views on Pillar 1 and Pillar 2 as tools for addressing banks’ exposures to climate risk Three ‘Pillars’ undergird the global banking rules known as the ‘Basel framework’: Pillar 1 covers rules on minimum loss-absorbing capital requirements for all lenders; Pillar 2, supervisory review measures, which include firm-specific capital add-ons […]
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TCFD Strategy White Paper – What Does Good Look Like
A good climate strategy is just good business. An organization with a well-developed climate strategy is able to address climate-related risks and leverage climate-related opportunities. Getting your strategy right can be the difference between success and failure in the face of great change. In this white paper we illustrate the value of developing the right […]
Why financial institutions are still lagging on climate risk management
A recent study suggests that resource constraints, concerns over regulation, and the allure of climate opportunities may all be slowing firms’ work on risk management European banks received an unwelcome Valentine’s Day gift earlier this week courtesy of UK nonprofit ShareAction, which published a damning breakdown of their ongoing financing of the fossil fuel industry. This revealed […]
Climate Basics 101: Tackling Physical and Transition Risks for Businesses
February 16th, 2022 In this webinar, we talk about how climate change presents real physical and transitional risks to every business. Join this interactive conversation where we tackle climate fundamentals, debunk myths, and breakdown jargon. Sign up below to watch our discussion. Don’t be left behind. We’ll help you See Beyond! Watch webinar Presented by:
How to Use TCFD to Build Investor Confidence
Climate change is rapidly rising on the agenda of major investors around the world. Pension funds, asset managers and other major capital allocators have recognized the financial materiality of the risks and opportunities associated with the transition to a net-zero economy and the physical impacts of a warming world. For investors, these financial impacts manifest […]
Assessing and Tackling Climate Risks for Banks
As global warming wreaks havoc across the world, there is a growing awareness that physical and transition risks threaten banks and the wider financial system. Banks have seen stakeholder awareness of these risks grow substantially over recent years, with regulators, policymakers, customers, employees, and civil society imploring them to improve and disclose their climate-related financial […]
The EBA’s climate disclosure standards leave much to be desired
New rules will force banks to publish stacks of climate data — but their usefulness may be limited Risk disclosures are supposed to alert investors to looming threats lurking on bank balance sheets and give them the information needed to make smart trading decisions. Post-financial crisis, the publication of such disclosures was enshrined under ‘Pillar […]
Climate risk regulation rundown: January 2022
What happened in climate-related financial regulation last month, and what’s coming up US President Biden nominated Sarah Bloom Raskin, a vocal supporter of tougher climate-related financial regulation, to be Vice-Chair of Supervision at the Federal Reserve on January 14. Raskin wrote in the New York Times in 2020 that climate change “threatens financial stability” and has queried the Fed’s decision to […]
Executive Compensation and Climate Metrics: Could This Be the Solution We Have Been Waiting for?
As climate change issues become increasingly material to businesses, organizations everywhere are struggling to keep pace. Many are setting net-zero targets and revealing new long-term business plans for achieving those goals. This has led some businesses to wonder whether tying climate-related metrics to executive compensation could help them on their new paths to net-zero. Executive […]
Climate Governance 101
January 28th, 2022 In this webinar, we talk about the first steps businesses need to take to structure and provide oversight for your climate journey and tap into the benefits of the framework backed by 85% of global GDP. Sign up below to watch our discussion. Don’t be left behind. We’ll help you See Beyond! […]