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4 11, 2019

Op-ed by Stan Dupre in Environmental Finance: In response to accusations that Enel’s SDG bond was greenwashing

Now that the G-word has been dropped, let’s talk about it, says Stan Dupré

Quoted by Environmental Finance last week, a representative from the green bond investor Nuveen charged that the “SDG-linked bond” recently issued by Italian electricity giant Enel amounted to “greenwashing.”

The first-of-its-kind bond is linked to a commitment to increase the coupon by 25 basis points if the company fails to meet its renewables capacity development targets by the end of 2021. A Nuveen representative argued, “That is not a green bond to us. If you want to issue a green bond, then issue a green bond funding the direct projects that are transitioning them to 55% renewables.” He added, “Effectively, all they have done is pay … an option on not delivering their renewables goals”.

So now that the “G-word” has been dropped, it might be the right time to ask: in many ways, isn’t the ‘green bond’ concept itself a form of greenwashing?

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29 10, 2019

CONFERENCE: Beyond Alignment: Monitoring the financing of the energy transition

When? November 28th 2019 from 10am to 1pm
Where? La Fabrique Événementielle, 52 ter Rue des Vinaigriers, 75010 Paris

During Paris for Tomorrow week, 2°ii and Beyond Ratings are organizing an event on November 28th, 2019 to discuss the financing of the energy transition and launch the new online platform NCTIP (National Climate Technology and Investment Pathways) which allows you to map country level sectoral technology pathways consistent with a 2°C scenario, as well as explicit investment options in climate relevant sectors. The audience will be invited to participate in panel discussions on the following topics:

1. Transition strategies: How can we accelerate the energy transition through innovative investment strategies and products?
2. Transition monitoring: What are the indicators and tools available to track progress and ensure our actions are taking us toward greater alignment with the Paris Climate Goals?

Why attend?

  • Learn about the new online platform NCTIP developed by Beyond Ratings and 2°ii
  • Hear from financial institutions leading the way in terms of investment strategies and metrics to track progress for financing the energy transition, as well as NGOs pushing the ambition of climate aligned finance
  • Participate in envisioning next steps to make progress on financing a low-carbon economy

What is it about?

This event will mark the launch of the new platform NCTIP, developed in partnership with Beyond Ratings as part of a Climate KIC-EIT project. The platform will enable key stakeholders to map the technology transition and investments necessary to achieve the 2°C target. The data is available at country and sector level, therefore allows the integration into key stakeholders’ operational process and investment decisions.

We invite participants of this event to imagine, discuss and reflect on the progress required in the coming years as well as innovative strategies, actions or metrics that can take us there. The panel discussions and the NTCIP platform launch will be followed by a buffet and time for further conversation.

Agenda

10h00 – 10h45 : Financing the Transition: How can we accelerate the energy transition through innovative investment strategies and products?

10h45 – 11h15: Launch of the NCTIP platform 
Live demo of the NCTIP platform and Q&As

11h15 – 12h: Monitoring the Transition: What are the indicators and tools available to track progress and ensure our actions are taking us towards greater alignment with the Paris Climate Goals?

12h – 13h: Buffet Lunch and Networking

TO REGISTER CLICK HERE.

23 10, 2019

WEBINAR: Enhancing Transparency & Aligning Private Financial Flows with the Paris Agreement

When? On November 11, 2019 from 14.00 to 15.00 (CEST)

This technical webinar will focus on how to use the PACTA model to measure the alignment of equity/corporate bond portfolios and global bank loans with the Paris Agreement. Free and open-source, the PACTA methodology analyses exposure to climate change-related sectors in equity and fixed-income portfolios over multiple scenarios – and compares it with scenarios needed for a climate-safe transition. More than 1,500 financial institutions worldwide have already applied the methodology on over $10 trillion in assets under management.

The webinar comes in the context of our support for the Swiss and Dutch government-led initiative, announced at the UN Climate Action Pre-Summit 2019, to help align private financial flows with the Paris Agreement. As part of this initiative, governments (national or sub-national), including some of the world’s biggest financial hubs, and financial institutions are committing to monitor their climate impact and their alignment with the 1.5°C temperature goal. Committed governments and financial institutions will enjoy a number of free benefits, including the chance to participate in testing the enhanced version of the PACTA methodology in 2020.

Speakers

  • Jakob Thomä, Managing Director at 2° Investing Initiative
  • Silvia Ruprecht, Senior climate policy advisor in the Swiss Federal Office for the Environment FOEN

Register for the webinar click here.

To learn more about the PACTA methodology and its role in the Swiss/NL Initiative, please see https://www.transitionmonitor.com/pacta-2020/ or contact transitionmonitor@2degrees-investing.org

This project has received funding from the European Union’s Life NGO programme under grant agreement No GIC/FR/00061 PACTA

16 10, 2019

Event: International Climate Reporting Awards Ceremony

Brune POIRSON, Minister of State attached to the Minister for the Ecological and Inclusive Transition, is delighted to invite you to the ceremony for the second edition of the International Climate Reporting Awards in presence of Olivier GUERSENT, Director General of DG FISMA, and Arnaud LEROY, ADEME CEO and Thomas LESUEUR, Commissioner-General for sustainable Development.

In addition to announcing the winners, a series of high-level conversations and panels will provide an overview of some of the key reporting drivers, best practices and challenges which international financial institutions are currently working on.

The Awards build on the French Article 173, European Action Plan and TCFD guidelines aims to stimulate innovation and recognize the best climate reporting practices of international financial institutions.

The 2019 awards are awarded by an independent jury and will highlight collective efforts and knowledge across different institutions and regions.

To register for the event, please click here.

2 10, 2019

Now launched: New partnership with the Japan Financial Services Agency (JFSA)

Following our successful application for the Japan Financial Services Agency (JFSA) special research fellowship, we are proud to announce a new partnership to conduct an impact evaluation of climate-related risks to Japan’s financial stability. The project will be led by Jakob Thomae, managing director at 2° Investing Initiative, and Hugues Chenet, co-founder and board member at 2°ii France.

This partnership represents an important expansion of our climate scenario methodology in a previously untapped market, following our collaborations with the Bank of England, the California Insurance Commissioner, and the European Insurance and Occupational Pension Authority (EIOPA), as well as 17 international banks representing 20% of the global banking sector by asset size. We look forward to sharing more about this exciting new partnership in the coming months.

20 09, 2019

Enhancing transparency and aligning private financial flows with the Paris Agreement

New joint initiative presented by Switzerland & the Netherlands, with technical support from the 2° Investing Initiative, at the UN Climate Action Summit

Despite progress in recent years, the finance sector is still falling short of what’s needed to address climate change. To help bridge this gap, Switzerland and the Netherlands are calling on Member States and financial institutions to sign on to a new pledge to assess and monitor the climate impact and alignment of their financial flows with the Paris Agreement’s 1.5°C temperature goal.

The 2° Investing Initiative is providing key support to this pledge, notably via the Paris Agreement Capital Transition Assessment (PACTA) climate scenario analysis methodology. Free and open-source, the PACTA methodology analyses exposure to climate change-related sectors in equity and fixed-income portfolios over multiple scenarios – and compares it with scenarios needed for a climate-safe transition. More than 1,500 financial institutions worldwide have already applied the methodology on over $10 trillion in assets under management.

How the pledge works:

Governments (national or sub-national), including some of the world’s biggest financial hubs, and financial institutions will commit to monitor their climate impact and their alignment with the 1.5°C temperature goal.

As well as Switzerland and the Netherlands, Denmark, Italy, Luxembourg, Norway, Portugal, Spain, and Sweden have agreed to commit, with additional interest from other major finance hubs. Private financial institutions, their industry representatives, public financial institutions, and supervisory authorities can also voluntarily commit to take action. Going forward, progress will be tracked to ensure the commitments made will result in climate impact in the real economy.

More on 2°ii’s contributions: the enhanced PACTA methodology

Committed governments and financial institutions will enjoy a number of free benefits, including the chance to participate in testing the enhanced version of the PACTA methodology in 2020. This version builds on our earlier, voluntary pilot project with Swiss pension funds and insurance companies in 2017. It also incorporates new insights from our partnership with ING and 16 other banks to test a methodology for corporate lending.

The enhanced version of the model will offer:

1)    The consideration of climate actions in addition to portfolio exposure;

2)    The ability to consider corporate loans’ climate goal alignment, and therefore make the test available for banks with global loan books;

3)    A target-setting framework to be finalized in 2020;

4)    A new tool to measure climate alignment of Swiss real estate and mortgage portfolios.

To find out more about the pledge, please contact lydie-line.paroz at bafu.admin.chsilvia.ruprecht at bafu.admin.chk.p.m.solberg at minezk.nll.a.j.eble at minezk.nl

To learn more about the PACTA methodology and the internationally coordinated PACTA-Initiative 2020, supporting the Swiss/NL Initiative, please see www.transitionmonitor.com or contact  transitionmonitor at 2degrees-investing.org

 

20 09, 2019

Our op-ed on Ethical Corporation: Tackling the last frontier in climate finance

Jakob Thomae of the 2° Investing Initiative explains how 17 international banks are road-testing a new methodology to address the barriers that have prevented banks from aligning more fully with the Paris Agreement

Ahead of New York Climate Week 2019, the sustainable finance sector has made important strides toward meeting one of the Paris Agreement’s long-term goals, under Article 2.1c: “making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development.”

But there’s a major caveat: while finance as a whole has concentrated on efforts to align equity portfolios with the Paris goals, or to promote green bonds, the banking sector has long remained one of the “last frontiers”. This has been due in large part to two major market gaps: the lack of data on non-listed companies, and the difficulties of processing data from unstructured databases.

Here at the 2° Investing Initiative, a non-profit thinktank working to align financial markets with climate goals, we’ve been working over the past months with a pilot group of 17 international banks in order to help address these gaps. By publicly announcing the banks that are piloting our flagship methodology for climate-scenario analysis of corporate lending portfolios, we’re hoping that the banking sector will be further empowered to contribute more fully to Article 2.1c – and to the Paris Agreement goals more broadly.

Read more at Ethical Corporation: http://www.ethicalcorp.com/tackling-last-frontier-climate-finance

19 09, 2019

Progress on the PACTA methodology for corporate lending: ING publishes its first Terra progress report

On September 19, 2019, one of our longstanding partners, ING, published their first progress report on Terra, their approach to steer its €600 billion lending book in line with the goals of the Paris Agreement to keep global warming to well-below two degrees. As ING put it: “With the Terra approach, ING aims to be a positive force in the fight against climate change. The progress report presents ING’s pathway towards climate alignment in the sectors most responsible for climate change and is intended to be published every year.

The disclosure addresses developments and climate alignment for the sectors: power generation, fossil fuels, automotive, shipping, aviation, steel, cement, residential mortgages and commercial real estate. These are the sectors in ING’s portfolio that are most responsible for greenhouse gas emissions. In a Climate Alignment Dashboard (CAD) the report presents which sectors are on track for climate alignment and where work is still in progress. This climate change disclosure is a first for banks.”

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16 09, 2019

17 international banks now piloting the 2° Investing Initiative’s flagship climate scenario analysis methodology

The engagement represents a major step forward in the banking sector’s contributions to measuring climate alignment

Ahead of New York Climate Week 2019, the 2° Investing Initiative (2°ii) is delighted to announce the international banks that are road testing the Paris Agreement Capital Transition Assessment (PACTA) methodology for climate scenario analysis of corporate lending portfolios.

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15 09, 2019

Event: Bridging the Gap – from Portfolio Alignment to Impact

The 2° Investing Initiative is delighted to invite you to:
BRIDGING THE GAP:
FROM PORTFOLIO ALIGNMENT TO IMPACT

Technical discussion on evidence-based and impact-oriented targets

When? September 24th 2019 – from 9am to 12pm
Where? ING Financial District office
1133 Avenue of the Americas, 9th Floor New York, NY 10036

2° Investing Initiative will bring together experts from the banking sector to discuss ways to build understanding of impact-oriented climate commitments. The audience will be invited to participate in a debate on the technical challenges to applying these target-setting and tracking concepts for banks and review a way forward.

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