How can convergence be created between the public- and private-sector work for the climate? Central banks and businesses have answered the One Planet Summit’s call and have committed together to take significant steps to redirect financial flows towards the low-carbon economy.
424+
companies and organizations support the TCFD recommendations. It includes 8 out of 10 of the largest asset managers, leading insurance companies, pension funds, accounting organizations and the largest proxy advisory firms.
3
national governments (France, Sweden, United Kingdom) included in the group of supporters
Announcements
- Launch of a coalition of companies committing to implement the TCFD recommendations and of States and supervisors planning to adjust their regulations if need be to promote corporate disclosure consistently with the TCFD recommendations.
- Announced by Mark Carney and Michael Bloomberg.
Accomplishments
- Launch of the TCFD Knowledge Hub, a web-based platform providing resources for companies to implement the recommendations
- Publication of an update and monitoring report providing an overview of current disclosure practices in line with the TCFD recommendations
- TCFD has been asked by the FSB to continue its work and draft a further update and monitoring report in 2019.
- Decision of the FSB on a possible follow-up.
“ Increasing transparency makes markets more efficient, and economies more stable and resilient.”
3
thematic priorities identified for the network work streams: micro prudential, macro financial, scaling up green finance
7
Additional and 5 observers members since December 2017
Announcements
- Establishment of a Network for Greening the Financial System by 8 central banks and supervisors accounting for a third of both global financial assets and carbon emissions
- People’s Bank of China, Monetary Authority of Singapore, Bank of Mexico, Banque de France and ACPR, Bank of England, German Bundesbank and the Dutch and Swedish supervisors.
- Aims to share analyses and innovations to:
- develop the opportunities related to the financing of the transition
- measure the long term risks associated with climate change
Accomplishments
- Definition of governance and work program of the network, chaired by Frank Elderson from the De Nederlandsche Bank (rotating)
- Conference on climate risk for supervisors on April 6th 2018 in Amsterdam with supervisors from 30+ countries and 50+ supervisory organizations
- Publication of the mandate of the NGFS work streams and the NGFS Charter
- Extension of membership since launch (now 17 members and 5 observers )
“Central banks are concerned with "greening" the financial system. This may be unexpected, but it's more than a passing trend. This is a conviction: climate stability is, in the long run, part of the determinants of financial stability, which is our responsibility.”
€150bn
Dedicated financial support for sustainable infrastructure investments through the “InvestEU” programme, leveraging €150bn
25 %
Is the part of the next EU budget (2021-2027) or €320bn the EC proposed to dedicate to climate objectives.
Announcements
- EU to be at the forefront of changes in the global finance industry and reform the financial sector in support of the transition to a more sustainable economy.
- By pioneering action through its Capital Markets Union, EU to be globally leading the shift and scale up private investment towards achieving the objectives of the Paris Agreement.
- With the overall goal of supporting the transition by putting in place the right conditions and incentives for investors to fund projects such as low-carbon and energy-efficient infrastructure.
Accomplishements
- Sept. 2017: Proposal to require the EU Supervisory Authorities to take ESG risks into account
- Jan. 2018: Final report of the High-level Expert Group on Sustainable Finance
- March 2018: EC Action Plan on 'Financing Sustainable Growth‘ and High-level Conference on Financing Sustainable Growth
- May 2018: 3 EU legislative proposals made to:
- establish a taxonomy on sustainable economic activities,
- improve disclosure requirements related to sustainability risks
- create benchmarks for low-carbon investment strategies
" The reforms which are underway in the EU are about putting sustainability considerations at the heart of investment decisions. This will allow us to harness the entire financial market in the fight against climate change. "