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25 07, 2018

2° Investing Initiative appoints Simon Messenger to lead engagements with companies and investors

Global independent think tank the 2° Investing Initiative (2°ii) has appointed Simon Messenger as Director of France and UK to lead its engagements with companies and investors on climate scenario analysis.

Stan Dupré, Founder of 2°ii, said: “We are delighted to have Simon on board. He will bring a vast amount of experience and expertise to oversee our expanding programme of work to align the financial sector with the 2°C climate goals of the Paris Agreement. Particularly exciting is that he will help to develop further our pioneering work on 2°C scenario analyses with companies and investors in response to the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD).”

Simon has 15 years of academic and professional experience in sustainable finance and sustainability reporting. As Managing Director of the Climate Disclosure Standards Board (CDSB), he worked with investors, companies and regulators on the disclosure of environmental and natural capital information in mainstream financial reports. He also led CDSB’s work in relation to the TCFD recommendations. Prior to this, Simon was Head of Consulting at the Energy Saving Trust and a sustainability manager at PwC and Deloitte. He holds two first-class degrees in environmental and climate change science and was highly commended in the Young Sustainability Executive category at the BusinessGreen Leaders Awards in June 2018.

Joining 2°ii, Simon Messenger, Head of Corporate and Investor Engagement and Director for France and the UK, said: “This is an extremely exciting opportunity, and I am looking forward to working with 2°ii on its groundbreaking climate change work to enable the financial services industry to better align itself with the 2°C climate goals.”

The think tank’s scenario analysis tool – the so-called Paris Agreement Capital Transition Assessment (PACTA) tool – has been one of the most popular and successful projects 2°ii has run. To date, the tool has been applied by over 250 institutional investors, as well as several financial supervisors, including the California Insurance Commissioner’s Office and the Swiss government. It enables investors to benchmark their exposure under 2°C climate scenarios against peers. The tool is also supported by the UN Principles for Responsible Investment and is set to be made freely available online this summer.

27 06, 2018

Discussion Paper: The Elephant in the Room – Aligning global bonds markets with climate goals

June 2018: While the discussion of bond markets has largely focused on the green bond space, which currently only represents a marginal share (<0.5%) of outstanding bonds, this discussion paper focusses on creating a broader understanding of the interface between climate goals and bonds.

Full Text

28 05, 2018

Discussion paper: Shooting for the moon in a hot air balloon? Measuring how green bonds contribute to scaling up investments in green projects

May 2018: This new discussion paper aims to pave the way for the development of a framework for assessing and moving forward the “contribution of green bonds to scaling up the investments in green projects”. The paper focuses on the case of ‘Use-of-Proceeds Green Bonds’ (UoP GB) that represent 95% of the market in 2016. It discusses the link between
increasing investment in UoP-GB on the one hand, and the growth of investments in green projects by issuers on the other hand, suggesting how this approach can be enhanced to achieve further impact.

Full Text

23 05, 2018

THE BIGGER PICTURE: The impact of automation, AI, shared economy … on oil demand

May 2018: Our new working paper “The bigger picture” shows that under optimistic assumptions around breakthrough technologies, oil demand could drop by 50% in only 22 years. A combination of shared economy, 3D printing, autonomous vehicles, nanotechnologies, and artificial intelligence, among others, could shave around 30 million barrels per day off of global oil demand. Once you add the ‘traditional’ assumptions around the effects of electric vehicles and the end of oil in the power sector, oil demand could drop to 47 million barrels per day by 2040.

The paper builds on a comprehensive literature review of the potential effects of breakthrough technologies, building on the optimistic assumptions founds in academic literature, as well as research by industry experts (McKinsey). Squarely in the realm of the possible, the analysis represents an alternative vision of what an oil demand crash could look like if technology disruption materializes. Our objective in this paper is not to forecast, but rather to show where optimistic technology assumptions lead the oil sector, providing the potential basis for alternative stress-testing frameworks for fossil fuels.

Full text

 

1 04, 2018

The Green Supporting Factor – Quantifying the impact on European banks and green finance

April 2018: In the context of mobilising policy actions with regard to sustainable finance, the European Parliament and Commission are considering introducing a Green Supporting Factor (GSF) or Brown Penalty (BP) for capital reserve requirements. The objective of this working paper is to identify the potential impacts of introducing a GSF or a Brown Penalty.

Full Text

22 02, 2018

2°C scenario analysis for corporate lending portfolios

In this project 2ii collaborates with banks to extend the existing 2°C scenario analysis framework to corporate lending portfolios including a road-test with participating banks of the methodology developed in the course of the project.

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31 01, 2018

It’s on you! Bringing climate assessments for household credit into the 21st century

Jan 2018: An overview of the current state of the household credit market. We argue that household credit has so far been an overlooked topic in climate finance. While there are some tentative steps from early movers to assess the climate impact of various types of household credit much potential remains to be unlocked.

Full Report

31 01, 2018

Financing a Sustainable European Economy

Jan 2018: 2°ii contributed to the final report of the EU High-Level Expert Group on Sustainale Finance “Financing a Sustainable European Economy”. The full report can be found here.