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 […]
Alex
Weekly round-up: February 21-25
The top five climate risk stories this week 1) HSBC sets portfolio emissions targets The UK’s largest bank released its blueprint for cutting emissions linked with two carbon-intensive portfolios. On Tuesday, HSBC said it is targeting a 34% reduction in the absolute financed emissions of its oil and gas exposures and a 75% cut in the […]
Weekly round-up: February 14-18
The top five climate risk stories this week 1) Banks, lobby groups caution OCC on climate risk guidance Respondents to a US bank regulator’s consultation on climate risk management principles say these should not place limits on lenders’ financing activities or alter their capital planning. The Office of the Comptroller of the Currency (OCC) issued draft […]
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 […]
Weekly round-up: February 7-11
The top five climate risk stories this week 1) Warren knocks SEC over climate disclosure rule delay US Senator Elizabeth Warren (D-MA) blasted the Securities and Exchange Commission (SEC) for its slow progress putting together a climate risk disclosure rule for public companies, branding the delay “unwarranted and unacceptable”. In a letter to SEC Chair […]