2019 picks from the Acclimatise article archive – Financial Services

2019 picks from the Acclimatise article archive – Financial Services

The start of a new year is a time for setting new resolutions for the year ahead, whilst giving consideration to moments that shaped us over the past year. With that spirit of reflection in mind, we sifted through our network’s article archive and selected some of our favourites from the past year. We’ve sorted our favourite articles by topic, to make up a six-part series throughout the month of January.

We kick off with six articles related to climate adaptation for the financial services sector. 2019 was another important year of progress with momentum continuing to grow behind the recommendations of the Taskforce on Climate-related Financial Disclosure (TCFD). The noises from central banks including Bank of England Governor, Mark Carney, indicate that they are prepared to take further action, if banks and investors are perceived to be dragging their heals on the issue. The Bank of England and the French financial regulator have both indicated that they will begin climate stress testing of banks this year.

In the meantime, there remains a need for more standardisation of approaches for climate risk disclosure in the industry. Acclimatise continues to work with leading banks and investors to develop methodologies to help them understand, measure and manage the physical climate risks to their loan portfolios and investments.

Advancing climate-related financial risk discourse in the financial sector

By Laura Canevari

The financial sector must play a fundamental role in the transition to a low carbon and climate-resilient future. To do this, there is a need for a systemic shift in the way the financial system operates and in the way investment decisions are made. Through the release of the TCFD Recommendations in 2017, financial institutions, along with corporates, have been given a robust compass with which to navigate climate disclosures.

Read the full article here.

Bank of the England plans to test climate resilience of UK banks

By Acclimatise news

Mark Carney, governor of the Bank of England, said the central bank has plans to include the impact of climate change in its UK bank stress tests. Since 2017, the Bank of England assesses on a yearly basis how well the UK’s biggest lenders could withstand a shock without needing a bailout from taxpayers. This announcement comes after a survey completed by the Bank of England in 2018 showed that only 10% of banks were considering their long-term climate change risks.

Read the full article here.

Climate change adaptation is the “biggest investment opportunity of this generation,” says new UNEP FI report

By Will Bugler

In September 2019, the UNEP Finance Initiative launched a technical background paper on adaptation finance, identifying barriers and opportunities for scaling up financing for climate change adaptation and resilience building. The paper, ‘Driving Finance Today for the Climate Resilient Society of Tomorrow’ refers to adaptation as “the biggest investment opportunity of this generation’.

Read the full article here.

Investor portfolios failing to account for climate risk says BlackRock

By Acclimatise News

A report by the BlackRock Institute accuses investors of under-pricing the impact of climate-related risks and advises a restructuring of assessments of asset vulnerabilities. The report, ‘Getting physical: Scenario analysis for assessing climate risk’ marks an important next step.

Read the full article here.

Climate poses direct risk to real estate investment says ULI report

By Will Bugler

In a recent published just last year, the Urban Land Institute and real-estate investment management firm Heitman assess the potential impacts of climate change on real estate assets and give some direction as to what investment managers and institutional investors might do to understand and reduce their climate risk disclosure.

Read the full article here.

COP 25 signals public and private sectors coming together to green the financial system

By Caroline Fouvet

Multiple side events involving green finance emerged at the 2019 UNFCCC climate negotiations this past year. One common thread was the importance of collaboration between public sector-led efforts and financial institutions’ (FIs) initiatives to build a sustainable low-carbon and climate resilient financial system.

Read the full article here.


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