The government’s new green finance strategy, to be published on Tuesday, will “set expectations” for listed companies and large asset owners to report climate risks by 2022, said the Treasury, adding that work with regulators “will explore the most effective way of doing this, including whether mandatory disclosures are necessary”
In short, without changing the size of our homes, or our cars, or fundamentally changing the fabric of our lives, these discounts mean that a fully electrified energy economy using non-carbon fuel sources would require less than half of the total amount of energy we use today.
“The delegates remained deadlocked on accounting rules and governance for the system, pushing the debate to their next meeting in Chile in December. They also failed to agree a statement on a scientific report about the risks of rising temperatures, with a group of countries trying to water it down, even as Berlin and Paris were facing highs near 40 degrees Celsius (104 Fahrenheit).”
Natural gas is at times described as a transition fuel in the response to the climate crisis as it has about half the carbon dioxide emissions of black coal when burned to generate electricity. That argument has been rejected by the head of the International Energy Agency and science bodies warning the world needs to rapidly move to clean energy and industries.
“It is also part of our mandate for monetary policy because climate change affects price evolutions, effects the economic outlook,” Villeroy told French asset manager Amundi’s annual investment forum in Paris.
This paper addresses what constitutes appropriate central bank policy in respect of environmental sustainability. Sound money and sustainability both depend on finding the right balance in the economy. Central banks use monetary policy to try to balance aggregate demand and supply. When they intervene in markets they can have significant impact – either to steer the economy or to address financial instability. This gives central banks the power and opportunity – subject to mandate - to address market distortions and externalities.
The Task Force on Climate-related Financial Disclosures (TCFD) published its 2019 Status Report to the Financial Stability Board (FSB) today. The TCFD’s second status report provides an overview of disclosure practices aligned with the Task Force’s recommendations between 2016 and 2018. The report also examines the decision-usefulness of existing climate-related financial disclosures to users of disclosure, and evaluates disclosures of strategy resilience and the challenges faced by preparers using scenario analysis. At the time of publication, nearly 800 organizations have expressed their support for the TCFD recommendations, a more than 50% increase from the publication of the first status report in September 2018.
An artificial intelligence (AI) review of reports from over 1,100 large companies across multiple sectors in 142 countries found that the average number of recommended disclosures per company has increased by 29% from 2.8 in 2016 to 3.6 in 2018. At the same time, the percentage of companies that disclosed information aligned with at least one of the Task Force’s recommendations grew from 70% in 2016 to 78% in 2018.
Investment professionals are increasing the pressure on big corporations to do more to combat climate change. A small, but influential investor, the Church of England has become a leader in the mission to save the environment through finance.
When doing your Risk Assessments, please be mindful of the physical and transition risks presented by climate change.
For three years in a row, the World Economic Forum’s Global Risk Report (GRR) has called out the risks we collectively face from climate change. In the 2019 report published in February, climate change and environmental risks dominate the “high likelihood” and “high impact” quadrant of the global risk matrix. Read the article here.
Click here to view the RMIA Risk Magazine April edition. Please note the magazine is for RMIA members only.
A renewed focus on lesser fuel usage was originally promoted by United Continental as a responsible move for the atmosphere. But the effects were felt most strongly by the company’s investors. United managed to save $343 million in a single fiscal year.
cross Alaska, March temperatures averaged 11 degrees Celsius above normal. The deviation was most extreme in the Arctic where, on March 30, thermometers rose almost 22 degrees Celsius above normal—to 3 degrees. That still sounds cold, but it was comparatively hot.
It is not alarmism to suggest that climate change is itself an emergency. It is the causal force driving up the frequency and severity of each of these other crises.
ExxonMobil and Chevron will square off at annual meetings today (29th May) with concerned investors who want to see greater action to address climate change risk, and a tangible shift in the corporate culture behind the companies’ intransigence.
Australia’s greenhouse gas emissions increased for fourth year in a row in 2018.
As things stand, however, Australia will be faced with the necessity of making the same transition over a period of perhaps five to 10 years. That will entail massive investment in solar PV, storage and wind, totalling perhaps $100bn. Given the uncertain environment created by decades of policy reversals, governments will need either to undertake this investment directly or provide long-term guarantees.
Activists are disappointed after the majority of large superannuation funds failed to support shareholder resolutions on environmental, social and governance issues last year.
The exceptions were construction industry fund Cbus, Local Government Super and Vision Super, which voted in favour of shareholder resolutions on more than 75 per cent of occasions, Australasian Centre for Corporate Responsibility's climate and environment director, Daniel Gocher, said.
“Despite claims from many funds that they are ‘ESG aware’, there is still widespread reluctance to support sensible shareholder proposals on these issues,” he said.
Corporations are facing increased pressure to apply climate-related governance, strategy, risk metrics and disclosure. Report preparers, assurers and auditors must approach climate change-related issues with the same degree of rigour as any other financial variable.
As reporting season approaches, financial report preparers are grappling with new expectations concerning the disclosure of financial impacts associated with climate change.
They all want to learn more about the greenhouse gases and other pollutants that pour out of the world’s power plants, with the aim of holding companies and polluters accountable. They’ll be relying on satellites currently up in space to gather data for this endeavour.