2020 Picks from the Acclimatise Article Archive – Financial Services

2020 Picks from the Acclimatise Article Archive – Financial Services

It’s that time of year again! The beginning of a new year marks a great time for dedicating oneself to resolutions, whilst also giving us an opportunity to reflect on the past year and the moments that shaped us. 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 short, three-part series throughout the month of January. To kick things off, we bring you six articles related to climate adaptation for the financial services sector.

While 2020 was a big year in terms of newsworthy moments across the globe, there were also many significant developments within the financial services sector. In September, the United Nation’s Environment Programme Finance Initiative (UNEP FI) released a report on Phase II of its Task Force for Climate-related Financial Disclosures (TCFD) Banking Program with Acclimatise. The new report, “Charting a New Climate”, provides financial institutions with a state-of-the-art blueprint for evaluating physical risks and opportunities. A new learning paper was also launched, one which provides insights on the lessons learnt from implementing Green Climate Fund (GCF) Readiness projects in the Caribbean and aims to inform future Readiness efforts in the region or globally.

Despite the grave conditions many economies are facing due to 2020’s COVID-19-induced lockdowns, expectations for corporates and financial institutions on climate risk analysis and disclosure have not slowed. In fact, climate risk and reporting mandates only appear to be increasing. 2021 will see a continued focus on climate risk analysis in the private sector, in the lead up to the 26th Conference of the Parties to the UN Framework Convention on Climate Change (UNFCCC). 

Acclimatise has now been acquired by Willis Towers Watson, where we offer joined up services on both physical and transition related-risk analysis.

Launch of “Charting a New Climate: State-of-the-Art Tools and Data for Banks to Assess Credit Risks and Opportunities from Physical Climate Change Impacts

By Acclimatise News

UN Environment Programme Finance Initiative (UNEP FI) has released a report on physical climate risks and opportunities from Phase II of its Task Force for Climate-related Financial Disclosures (TCFD) Banking Program with climate risk advisory and analytics firm, Acclimatise. The report, “Charting a New Climate”, provides a state-of-the-art blueprint to support financial institutions to navigate the changing physical climate risk landscape.

Read the full article here.

Why climate resilience bonds can make a significant contribution to financing climate change adaptation initiatives

By Maya Dhanjal

There is a rising cost associated with economic damages related to climate change with 2019 being the most expensive year to-date and expected to only get worse. Governments who are mainly responsible for providing this funding are strapped in their ability to mobilise and manage emergency funds. Resilience bonds provide a unique opportunity to hybridise principles in debt securities and insurance policies and ultimately divert available funds into climate-resilient projects that will enhance adaptive capacity, particularly for long-lived infrastructure assets that have to face the test of time and a changing climate.

Read the full article here.

GCF readiness efforts in the Caribbean: Learning from Practice

By Acclimatise News

A new learning paper by Acclimatise provides an insight on the lessons learnt from implementing Green Climate Fund (GCF) Readiness projects in the Caribbean and aims to inform future Readiness efforts in the region or globally.

Read the full article here.

Expectation for corporates and financial institutions on climate risk analysis and disclosure continue to evolve and grow 

By Robin Hamaker-Taylor

As 2020 comes to a close, this article summarises major developments expectations for corporates and financial institutions on climate risk analysis and disclosure in the last quarter of this year. 

Read the full article here.

New report: Protecting low-income communities through climate insurance

By Will Bugler

Since 2015, the InsuResilience Investment Fund (IIF) has worked to build the climate resilience of poor and climate-vulnerable households as well as micro, small and medium enterprises, by increasing climate insurance coverage. A new report “Protecting low-income communities through climate insurance”, takes stock of its experience and achievements to date. 

Read the full article here.

Financing and de-risking nature: The next frontier for financial institutions

By Laura Canevari 

Nature and biodiversity have gained the spotlight this year, becoming the next frontier for financial services. Earlier this year, the Task Force on Nature-related Financial Disclosure (TFND) was launched under the leadership of the Global Canopy, UNDP, UNEP and WWF, aiming to redirect financial flows towards nature-based solutions and nature-adding activities.

Read the full article here.


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