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.
     

Next steps

  • Extension of the mandate of the TCFD to effectively monitor progess.
  • Additional commitments to implement the recommendations of the TCFD.
  • Publication of further guidance by partners and of additional TCFD aligned reports by companies.
  • Announcement of companies planning to implement the TCFD recommendations beyond formal support.
“ Increasing transparency makes markets more efficient, and economies more stable and resilient.”
Michael R. Bloomberg, Chair

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 ) 
     

Next steps

  • Stocktaking exercise in 2018
  • Communication on progress at the IMF-WB annual meeting in October 2018
  • 1st NGFS progress report to be  published in April 2019 at the latest
“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.”

François Villeroy de Galhau, Governor of the Banque de France

€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
       

Next steps

  • Ongoing: •  Assessment of the extension of the eco-label framework to financial products
  • Clarifying the duty of institutional investors and asset managers regarding ESG risks
  • Incorporating sustainability in investment advice
  • March 2019: Conference on Sustainable       Finance,
  • June 2019: Technical Expert Group established in June 2018 reports on:
  • A taxonomy on climate change  mitigation and adaptation;
  • An EU Green Bond Standard; Improving climate-related corporate disclosures;
  • Low carbon benchmarks.
  • Q2 2019: Revision of guidelines on non-financial reporting 
" 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. "
Valdis Dombrovskis, Vice-President European Commission