This week, the Climate Bonds Standard and Certification Scheme, released a significant expansion to its scheme with a new Company-level Certification. This certification indicates to investors that a company is a green entity committed to a Paris-aligned pathway of limiting global warming to 1.5-degrees. The Climate Bond Certification focuses onContinue…
On April 20, 2023, the Financial Stability Board (FSB) published a report on the impact of climate change on compensation frameworks in financial institutions. As climate change becomes a top priority for financial institutions and regulators, many are adopting climate-related metrics in their compensation frameworks. Several jurisdictions have already incorporatedContinue…
The European Supervisory Authorities (ESAs), together with the European Central Bank (ECB), published a Joint Statement on climate-related disclosure for structured finance products. The Statement encourages the development of disclosure standards for securitised assets through harmonised climate-related data requirements. climate-related structured products The European Supervisory Authorities (ESAs) and the ECBContinue…
To reduce its economic impact, adaptation and mitigation actions are urgently needed. Decision-makers need to understand their benefits and costs compared to not acting at all. This briefing summarises the main assessment concepts, key methods and related challenges and constraints, and provides practical examples of approaches relevant to the EU.Continue…
This year the International Forum of Sovereign Wealth Funds – IFSWF – took a slightly different approach to their annual survey. Instead of looking at investment beliefs, they focused more on the policies and practical steps sovereign wealth funds are taking to implement their climate-change policies. Such an approach makesContinue…
Climate change will continue to take center stage on the European regulatory agenda in 2023 as financial authorities introduce new disclosure requirements for banks, heighten their expectations for lenders’ risk management and contemplate new prudential rules. As a result, this year banks will “spend a lot of time, money andContinue…
Alvaro Vivanco, Head of EM and ESG Macro Strategy at NatWest Markets, explains why a sustainability-linked bond tied to level of Amazon’s deforestation (with adjusted coupon to annually upwards or downwards of deforestation) would provide the right incentives for Brazil and investors alike to tackle this major priority in theContinue…
The European Parliament and the Council of Europe reached yesterday a political agreement on the Carbon Border Adjustment Mechanism (CBAM). The CBAM is the EU’s landmark tool to put a fair price on the carbon emitted during the production of carbon intensive goods that are entering the EU, and to encourage cleanerContinue…
The Basel Committee on Banking Supervision published responses to frequently asked questions to clarify how climate-related financial risks may be captured in existing Pillar 1 standards. Consistent with the objective of FAQs, the responses are intended to facilitate a globally consistent interpretation of existing standards given the unique features of climate-related financialContinue…
The Climate TRACE coalition released the most detailed facility-level global inventory of greenhouse gas (GHG) emissions to date, including emissions data for 72,612 individual sources worldwide. The 70,000+ individual sites – including specific power plants, steel mills, urban road networks, and oil and gas fields – represent the top knownContinue…
