Stockholm (NordSIP) – The following banks have committed to develop analytical tools and indicators to strengthen assessments and disclosures of climate-related risks and opportunities in conjunction with the UN Environment Programme (UNEP) Finance Initiative, according to a press release:
- National Australia Bank
- Royal Bank of Canada
- Standard Chartered
- TF Bank Group
The cooperation is designed to encourage other banks worldwide to adopt such climate-focused efforts.
“The message from financial heavyweights is clear – climate change poses a real and serious threat to our economy,” said UNEP Executive Director Erik Solheim. “At the same time, there are enormous business opportunities in taking climate action. Transparency on how financial institutions mitigate the risks and seize the opportunities of a two degrees pathway is crucial to move international markets towards actively supporting a low-carbon and climate-resilient future.”
Increasing the amount of reliable information on financial institutions’ exposure to climate-related risks and opportunities is expected to strengthen the stability of the financial system, alongside helping to boost climate-friendly investments, the press release suggested.
The institutions will follow recommendations by the Financial Stability Board’s (FSB) Task Force on Climate-Related Financial Disclosures (TCFD), which was mandated to develop voluntary, consistent climate-related financial risk disclosures for use by companies, investors, lenders and insurers. The FSB is chaired by Bank of England governor Mark Carney, while the TCFD is chaired by former NY mayor Michael Bloomberg.
Their final recommendations were submitted to the G20 last week. “After the G20, the issue now is about implementation: how can the finance industry put the framework into practice and deliver disclosure that is meaningful?,” asked Christian Thimann, group head of strategy, sustainability and public affairs at the AXA Group, co-chair of UNEP Finance Initiative and TCFD Vice-Chair.
“Through this and other industry-led working groups UNEP FI is helping the finance sector to do just that: Move from awareness to action,” he said.