The top five climate risk stories this week 1) Climate risk rules proposed for top UK pension scheme The UK government wants the country’s largest public pension scheme to crack down on its climate risks. Under a proposal drawn up by the Department for Levelling Up, Housing and Communities, the Local Government Pension Scheme (LGPS) — which […]
Alex
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 […]
Weekly round-up: August 22-26
The top five climate risk stories this week 1) Texas blacklists financial institutions over fossil fuel policies Texas has banned state pension funds from investing in 10 banks and asset managers it says are hostile to fossil fuels. BlackRock, BNP Paribas, Credit Suisse, Danske Bank, Jupiter Fund Management, Nordea, Schroders, Svenska Handelsbanken, Swedbank, and UBS are […]
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 […]
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 […]