This newsletter comes to you as the members of the FSB Task Force on Climate-related Financial Disclosures gather for its plenary meeting in Berlin. Fittingly, therefore, in this newsletter we focus on finance, climate and risk.
We take a look at how the work of the FSB Task Force should progress from here and build some of the conditions necessary for an orderly and inclusive transition to a global low carbon economy. Next, we take a look at the capacity of Principles for Responsible Investment signatory asset owners and investment managers to understand and manage the financial impacts of climate change and other ESG factors – and find that many appear woefully underprepared. We then take a deep dive into the options available to one highly carbon intensive sector at risk – the international oil majors - to transition their business models to become 1.5/2°C compatible. Finally, we share a few reflections on how the European Commission’s new High Level Expert Group on Sustainable Finance can help European government and investors get on the front foot on these issues - and see Europe regain some of the climate leadership it has lost in recent years.
Thanks for reading,
Ingrid Holmes, Director