The International Award on Investor Climate-related Disclosures (2° Invest Award) is an initiative organized by the French Ministry of Environment, Energy and the Sea, the Ministry of Finance and Economy and the 2° Investing Initiative. The award is designed to enable the fostering of innovation and promotion of existing best-practices in climate disclosure aligned with the requirements of Article 173-VI of the Energy Transition for Green Growth Law.
The objective of the 2016’s edition of the award was three-fold:
- To help prepare investors planning to showcase and/or improve their methodologies and disclosure in the next reporting cycle;
- To give the opportunity to investors to receive feedback on their current reporting and the possibilities for improvement; and
- To provide food for thought to the various organizations (private sector working groups, investors coalitions, governments, standard organizations) involved in the development of guidance for financial institutions.
Asset owners and asset managers were called to submit their applications during a period of 1 month, from September 15 to October 15. Feedback was provided to investors submitting their application during the first week, who had the possibility to integrate it in their reporting and re-submit a final version before the last deadline. By October 15, 30 applications were received.
The reports submitted were scored on the basis of 24 criteria falling within 4 major pillars: i.) integration of climate criteria in the investment decisions and engagement; ii.) alignment with climate goals; iii.) exposure to climate risks; and iv.) communication with clients and beneficiaries. The grid was developed in such a way that no weighting was given to any factor, thus following the spirit of Article 173 by providing flexibility to the investor regarding the most convenient approach.
The jury of the award, composed of 14 voting members and 7 observers belonging to 4 constituent groups (advocacy NGOs, investor groups, Members of Parliament and public administration) and presided by Ségolène Royal, Minister of Environment, selected the winners on October 26th. The reports of 7 investors were selected as best-practice due to their performance on the first three categories aforementioned.
Each report submitted was rated on the various criteria. For each section of the grid the scorecard included a summary of the strengths and weaknesses (2-3 sentences) and a spider chart (see sample below).