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Easy to use materials
- We have collaborated with ICAEW and Deloitte to produce nine short films introducing the challenge of climate change to the citizen and to business. To view these visit: deloitte.co.uk/climatechange
- Our Planet: Our Business – a version of David Attenborough’s Our Planet (Netflix) has been edited for a business audience by the WWF and our partner ICAEW. It features scientific, business and political leaders who share their thoughts about the cumulative loss of nature worldwide, including the impact on businesses should nature collapse. Michael Izza, CEO of ICAEW, launched the film with a speech showing the ICAEW’s commitment to using its huge reach – 150,000 chartered accountants worldwide – to take a lead in tackling the issue.
- Videos (and 5-Minute Read Key Takeaways) from a 4-part Climate Crisis series, run by The Deloitte Academy, in collaboration with Chapter Zero, the UK Chapter of the World Economic Forum (WEF) Climate Governance Initiative:
1. Climate Crisis Briefing – Bringing climate change on to the board agenda event (13 September 2019).
The speakers were Simon Thompson, Chair of Rio Tinto PLC and 3i Group PLC, Emily Farnworth, Head of Climate Change at WEF, Emma Howard Boyd, Chair of the Environment Agency, and Susan Hooper, non-executive director of Rank Group, Uber UK, Affinity Water and Wizz Air.
2. Climate Crisis Briefing – climate change risks and opportunities, scenario analysis and strategy (14 October 2019).
The speakers were Richard Gillingwater, chair of SSE and Daniel Klier, Global Head of Sustainable Finance, HSBC (plus an expert panel).
3. Climate Crisis Briefing – Financial statement impact and narrative reporting in the annual report event (6 December 2019).
Our keynote speakers were Sarah Breeden, Executive Director of the Prudential Regulation Authority at the Bank of England, Judith Batchelar OBE, Director of Sainsbury’s Brand and Veronica Poole, Global IFRS Leader at Deloitte. The event described the impact of climate and why it is relevant to the Bank of England, as well as disclosure expectations, how practitioners are responding and the auditor’s view.
Glossary of terms
A resource to help NEDs get comfortable with climate change related jargon. Click here.
Sustainability Industry Bodies and Frameworks
Links to key sources of information to stay informed
Developing an understanding of Climate Change
In the world’s largest economies, where the need to reduce carbon emissions is greatest, CEOs broadly recognise the silver lining in the climate change cloud: new product and service opportunities (see Exhibit 17). China’s growing embrace is the most pronounced; in 2010, only 2% of China CEOs saw opportunity in the climate change crisis for new products and services. Now, nearly half (47%) do.
|Pivotal moment recording||Dr Emily Shuckburgh explains the fatal difference just 0.5°C of warming will bring, and explores how businesses the world over can step up, and set targets that hold global temperatures to 1.5°C|
|Huw van Steenis|
|What I learned at Davos 2020||Investors and financiers can see the stakes are rising. Firms can see there is real money to be made by helping mobilise capital into financing the transition to a lower carbon economy. Some $90tn may need to be invested over the coming decade, according to the Bank of England.|
|INSIDE BUSINESS ON MONDAY||Decarbonisation cannot ultimately be subcontracted to well-meaning investors or altruistic businessmen. Disinvestment will not save the planet.||Fund managers aren’t there to drag their clients out of profitable investments into ones where returns are more meagre. That would be quixotic and almost certainly unsuccessful. For as climate-concerned investors dumped fossil-fuel stocks, thus driving down their value, their socially neutral peers would take advantage of the mispricing that came about, meaning the net effect was blunted. In the case of climate change, it could even be detrimental. Put Royal Dutch Shell out of business by dumping its shares and state-run oil companies in Asia or South America might pick up the slack, creating more polluting output.|
|An Ipsos Survey for the World Economic Forum||Global changes in consumer behaviour in response to climate change||A survey showing amongst others, two-thirds of adults surveyed across 28 countries (69%) say they have made changes to their consumer behavior out of concern about climate change: a lot of changes for 17%, a few changes for the other 52%.|
|The Global Commission on Adaptation (The Commission is led by Ban Ki-moon, 8th Secretary-General of the United Nations, Bill Gates, Co-chair of the Bill & Melinda Gates Foundation, and Kristalina Georgieva, CEO, World Bank)||A global call for leadership on climate resilience||Under a “business-as-usual” emissions scenario, the US will lose 10.5% of its GDP, Japan, India and New Zealand will lose 10%, Switzerland will be down 12%, Russia 9% and the UK down by 4%. The Global Commission on Adaptation shows how investing in adaptation, and in the innovation that comes with it, can unlock new opportunities and spur change across the globe.|
Report updated on Friday, September 13th, 2019
|Nature.com||Climate tipping points — too risky to bet against||Politicians, economists and even some natural scientists have tended to assume that tipping points1 in the Earth system — such as the loss of the Amazon rainforest or the West Antarctic ice sheet — are of low probability and little understood. Yet evidence is mounting that these events could be more likely than was thought, have high impacts and are interconnected across different biophysical systems, potentially committing the world to long-term irreversible changes.|
27 Nov 2019
|The Carbon Trust||What is net zero||Unlike other terms, such as carbon neutral, there is no commonly agreed definition of what constitutes net zero emissions. However, this may be about to change. In September, the SBTi published a discussion paper – ‘Towards a science-based approach to climate neutrality in the corporate sector’ – containing a working definition of net zero to inform corporate net zero targets.|
13 Nov 2019
|Global Carbon Project||Global Carbon Budget 2019|
This report shows the per capita per person tCO2 for Europe is 6.9 versus China’s which is 7.0 and India of 2.
Find out who the largest emitters are, pathways and remaining budget.
|United Nations Environment Programme||Emissions Gap Report, 2019||Under the current commitments we have only a 66% chance of reaching 3.2 degrees Celsius of global warming, this is catastrophic for the world and why significant action is needed in 2020. The report also provides insights into measures that can be taken to reach net zero coal GHG emissions.|
26 Nov 2019
|World Business Council for Sustainable Development||Carbon Pricing WBCSD Policy Paper 2019||Presents the reasons why business supports carbon pricing as a critical enabler to raise climate ambition and calls on policy makers to establish and extend current carbon pricing mechanisms.|
19 Nov 2019
|Carbon Pricing Leadership Coalition||Understanding Carbon Pricing||A helpful introduction to carbon pricing|
|Published in BioScience||World Scientists’ Warning of a Climate Emergency||5 Nov 2019|
|Schroders||Schroders: Climate change dashboard||A tool created to help Schroders’ analysts, fund managers and clients track climate action.|
4 Oct 2019
|EcoAct||The Sustainability Reporting Performance of the FTSE 100||This report features a leaderboard that ranks FTSE 100 companies on sustainability reporting performance.|
|Science Advisory Group to UN Climate Action Summit 2019||The United in Science report, convened by the Science Advisory Group of the UN Climate Action Summit 2019||The report includes details on the state of the climate and presents trends in the emissions and atmospheric concentrations of the main greenhouse gases. It highlights the urgency of fundamental socio-economic transformation in key sectors such as land use and energy in order to avert dangerous global temperature increase with potentially irreversible impacts. It also examines tools to support both mitigation and adaptation.|
22 Sep 2019
|PwC||The 2019 Low Carbon Economy Index||The results make reaching the Paris Agreement targets extremely challenging without stronger Government policies. Progress on climate appears to have stalled and the Paris Agreement goal slips further out of reach as a decarbonisation rate of 7.5% per year is now needed to limit warming to 2°C. Boards will be increasingly challenged to deal with extreme weather impacts and growing climate policy risk.|
19 Sep 2019
|Global Commission on Adaptation||Adapt now: a global call for leadership on climate resilience||This report focuses on making the case for climate adaptation, providing specific insights and recommendations in key sectors such as food security, water, infrastructure and finance.|
13 Sep 2019
|World Economic Forum||The speed of the energy transition||A paper on the speed of the energy transition.|
12 Sep 2019
|BBC||BBC briefing – energy||This briefing explores the challenge of how energy can be supplied affordably and reliably, while honouring the UK’s commitment to almost completely eliminating carbon emissions over the next three decades.|
6 Sep 2019
|Green Alliance||Acting on net zero now||This paper green Alliance propose five policies that could be put in place immediately to get the UK back on track to meet its carbon budgets and on the road to net zero by 2050 latest.|
|IPCC||Intergovernmental Panel on Climate Change (IPCC): An IPCC special report on the impacts of global warming of 1.5 °C above pre-industrial levels and related global greenhouse gas emission||Does your business understand the financial, environmental, economic and socio-cultural risks of a 1.5°C warmer world?|
8 Oct 2018
|Schroders||The forgotten physical risks||This analysis examines the implications of the physical risks of climate change for companies and investments.|
|Partners: Grantham Research Institute on Climate Change and the Environment, LSE, FTSE Russell & Principles for Responsible Investment||A global initiative led by asset owners and aimed at investors: website||Aligned with TCFD and supported globally by major asset owners and asset managers, the Transition Pathways Initiative publishes research on high impact sectors, including autos, cement, oil and gas, coal, electric utilities, paper, aluminium, aviation, shipping, chemical and steel sectors.|
|Grantham Institute, Imperial College London||Subscribe to the Grantham Institute – Climate Change and the Environment mailing list||Keep up to date with research activities at the Grantham Institute, receive invites to their events and find out about their latest publications.|
|Subscribe (free) to receive regular updates|
UK Government policy and policy proposal papers
|Jonathan Brearley, Chief Executive of Ofgem – FT||Fair energy costs must include the funding needed to get to net zero||“Ofgem’s decarbonisation action plan, published on my first day in charge, explains how we will tackle climate change and build a low-carbon energy system at the lowest possible cost to consumers. The regulator is taking an approach which recognises that protecting consumers includes helping to hit the net zero target passed by parliament. This equal commitment to protect today’s citizens and those of the future will be reinforced in every decision we make.”|
|Green Deal Article – Financial Times||Europe shows the way to tackle the costs of the new climate order||To support its European Green Deal, Brussels this week said it would try to orchestrate €1tn of public and private investment over 10 years. Half will come from the next EU budget, €100bn from matching contributions from national budgets, a quarter from an EU-backed investment scheme and the rest from the European Investment Bank.|
|Green Alliance policy insight||Using digital technology to increase business energy efficiency||Digitally enabled energy efficiency is an inexpensive way to reduce energy demand, avoiding unnecessary investment in power generation and network infrastructure. It also cuts business costs. The government’s 2030 energy efficiency target for business could save small and medium enterprises (SMEs) around £2.7 billion a year by 2030, and £6 billion a year for UK business as a whole. While, from an industrial strategy perspective, energy efficiency has been directly responsible for a quarter of the UK’s economic growth, by increasing productivity.|
|Bright Blue||Immediate public expectations of and priorities for the Conservative Government||This report shows there is a significant gap between the level of priority that the UK public expects and wants to place on these key policy issues. The second of the key policy issues the UK public wants to be a high priority is climate change with 64% of people wanting it and air pollution to be a high priority issue.|
8 Jan 2020
|Land use: Policies for a Net Zero UK|
There is now a need to put in place clear, well-designed policies to ensure the UK’s use of land contributes to the Net Zero emissions target, this report presents the CCC’s first ever in-depth advice on UK agricultural and land use policies.
Click here for the infographic
Are these opportunities or risks for your business?
Reduce food waste and consumption of the most carbon-intensive foods – reduce the 13.6 million tonnes of food waste produced annually by 20% and the consumption of beef, lamb and dairy by at least 20% per person, well within current healthy eating guidelines.
|PRI (An investor initiative in partnership UNEP Initiative and United Nations Global compact)||Preparing investors for the Inevitable Policy Response to climate change||Further climate policy is expected ahead of COP26. However, in the meanwhile has released a forecast of an Inevitable Policy Response with a view on pricing-in the likely near-term policy response to climate change. The analysis shows that these critical policies could permanently wipe up to 4.5 percent or $2.3tn off the valuation of a range of companies in the MSCI ACWI index.|
We Are Still In
(A coalition of cities, states, tribes, businesses, universities, healthcare organizations, and faith groups. As they did in 2017, they strongly oppose the US withdrawal from Paris, and are not going to take a retreat from the global response to the climate crisis)
|Responses to US Withdrawal from Paris Agreement||3,841 leaders representing 158.6million people, across 50 states, totalling $9.46 trillion in GDP have signed up to support the Paris Agreement despite Trump’s views.|
|Department of Business, Energy and Industrial strategy and Energy Transitions Commission||Accelerating the low carbon transition by sector||Provides sector specific application to the low carbon transition. Power, Agriculture and land-use, cars and trucks, shipping and aviation, buildings, steel, cement, plastics.|
|Department of Business, Energy and Industrial strategy and Energy Transitions Commission||Accelerating the low carbon transition by sector – infographic||An infographic making the case for stronger more targeted and co-ordinated international action. Includes concise sector specific considerations.|
World Economic Forum in collaboration with Boston Consulting Group
Nordic countries have been among the few to take truly decisive steps, supported by favourable public opinion and social contexts. For example, Sweden’s climate act of 2018 enforces yearly reporting, sets targets at 1.5°C or below and calls for forceful climate policy through the country’s dedicated Climate Policy Council. Sweden has set the highest carbon tax in the world, at €114 per tonne, is engaging industry in sector-specific dialogue to create meaningful policies and has invested heavily in R&D and new technology pilots, along with climate-resilient development projects through the UN Green Climate Fund. The Netherlands has also taken decisive steps, putting in place a Climate Agenda and ambitious targets for renewables, reinforced by subsidies and biofuel mandates. The country has regulations on new building energy performance and aims to phase out gas boilers by 2050, supported by tax breaks and subsidies. Industrial sectors are also subject to energy efficiency and best available technique (BAT) standards.
|UK Government||Net Zero Review launched to support UK’s world leading climate commitment||Review launched that will determine how the UK ends its contribution to global warming. 2 Nov 2019|
|UK Government||Government response to CCC 2019 Report to Parliament – Progress in preparing for climate change||Oct 2019|
|Committee on Climate Change||CCC Progress reports to Parliament.|
|CBI||Low carbon 2020s – a decade of delivery||This paper sets out the CBI’s policy recommendations for the 2020s to government, focused on the sectors that are key to the UK’s domestic net-zero ambitions|
4 Nov 2019
|Aviva||Marshall plan for the planet||Aviva’s paper sets out their ideas for how to address the major barriers that are still preventing proper investment in a sustainable future.|
|UK Government||The Green Finance Strategy||This government strategy explores the role of the financial sector in delivering global and domestic climate and environmental objectives.|
2 Jul 2019
|UK Government||UK government commits to net zero||UK government passes net zero emissions law.|
27 Jun 2019
|Energy Transitions Commission||Mission Possible report||This report describes why reaching net-zero CO2 emissions from harder-to-abate sectors is technically and economically feasible, how to manage the transition to net-zero CO2 emissions in heavy industry and heavy-duty transport and what policymakers, investors, businesses and consumers must do to accelerate change.|
19 Nov 2018
The Boston Consulting Group, Henderson Institute
|The Economic Case|
Climate Change – for six countries BCG studied economically optimised paths for implementing climate change mitigation efforts
HOW TO DECARBONIZE A DEVELOPED ECONOMY: There are clear paths for most countries to achieve substantial reductions in greenhouse gas (GHG) emissions that can generate near-term macroeconomic payback. Just about all leading emitters could eliminate 75% to 90% of the gap between emissions under current policies and their individual 2050 2°C Paris targets using proven and generally accepted technologies. If they prioritize the most efficient emissions reduction measures, taking the necessary steps will actually accelerate, rather than slow, GDP growth for many countries. All countries can generate economic gain by moving at least part of the way—even if they move unilaterally.
|UK Government||The Clean Growth Strategy||This strategy sets out the government’s proposals for decarbonising all sectors of the UK economy through the 2020s. Last updated 16 Apr 2018|
|Committee on Climate Change||https://www.theccc.org.uk/||Website detailing the independent advice to government on building a low-carbon economy and preparing for climate change.|
Identifying, assessing and measuring the business risk
Taking the time now to think about climate risks, running appropriate impact scenarios and making the relevant changes to business models and strategies gives companies the opportunity to take advantage of the new technologies and market opportunities these changes present. The report also notes the need for urgency because whilst currently voluntary, the UK government has announced that it plans to mandate TCFD-based reporting for all listed companies by 2022; and the PRI is mandating it for all signatories by 2020.
|McKinsey Global Institute||Climate risk and response – Physical hazards and socioeconomic impacts||In this report, we look at the physical effects of our changing climate. We explore risks today and over the next three decades and examine cases to understand the mechanisms through which physical climate change leads to increased socioeconomic risk. We also estimate the probabilities and magnitude of potential impacts.|
|The 1.5°C Business playbook by Exponential Roadmap||Concrete tool to facilitate halving of emissions at least every 10 years, and shift business focus to zero-carbon solutions.||This playbook is developed for companies that want to align with the 1.5°C ambition. Small, medium and larger companies may find it useful both for strengthening their own strategy and to help in engaging suppliers and setting requirements. Companies with advanced climate strategies that have already joined sector climate initiatives can use it to benchmark their approach and raise ambitions. In this capacity, the playbook will help to establish a clear climate strategy, define targets aligned with science, set requirements for suppliers and align supply chains and value propositions with a 1.5°C ambition. This guide is grounded on the Exponential Roadmap which integrates solutions from several research projects such as Project Drawdown and the Low Energy Demand scenario, which are also referenced in this playbook. It highlights 36 key solutions that together can halve global emissions by 2030. These solutions are all market-ready: they are affordable (like wind and solar), can scale rapidly (like reduced food waste) and can save money (like building efficiencies).|
Jan 2020 – v1.0
|World Economic Forum|
In partnership with Marsh & McLennan and Zurich Insurance Group
|The Global Risks Report 2020||The World Economic Forum’s 2020 top five global risks in terms of likelihood relate to the environment and the number one risk in terms of impact is: climate action failure|
Jan 2020 – 15th Edition
|Transition Pathway Initiative||Management Quality and Carbon Performance of Transport Companies||This slide set reports on TPI’s latest assessment of the transport sector, comprising 57 companies in automobile manufacturing, airlines and international freight shipping. We cover more automobile manufacturers and airlines than last year, and we include shipping companies for the first time.|
|BSR/GlobeScan||The State of Sustainable Business 2019 Results of the 11th Annual Survey of Sustainable Business Leaders 2019||Provides insight into sustainable business and looks at the future milestones around which companies are planning their sustainability strategies and what they’ll be doing differently. |
|Financial Conduct Authority||Feedback FS 19/6 – Climate Change and Green Finance: summary of responses and next steps||Discusses the stakeholder responses received to its discussion paper DP18/8 and sets out its actions and next steps to ensure the FCA’s regulatory approach creates an environment where market participants can manage the risks from moving to a low carbon economy, and capture opportunities to benefit consumers.|
|Herbert Smith Freehills||Climate Change – Succeed in a lower carbon future||This report considers the political, regulatory and commercial pressures arising from climate change and examine the opportunities and rewards for corporates leading the charge into a lower-carbon future.|
25 Sep 2019
|World Business Council for Sustainable Development||Business climate resilience: thriving through the transformation||Brings together global developments and latest thinking on climate adaptation and resilience, with particular focus on private sector climate resilience. It builds on the need for businesses to prepare for both the physical risks that are associated with climate change, as well as the associated transitional risks on the path towards a net-zero economy.|
18 Sep 2019
|Carbon Risk Real Estate Monitor||Stranding risk and carbon – science-based decarbonising of the EU commercial real estate sector||This paper provides background information on ‘stranding risk’ in the property sector, describes global and EU policies on climate change mitigation as well as international standards on the assessment of greenhouse gases, explains how property specific targets can be derived from global climate targets and international commitments and focuses the assessment of greenhouse gases and strategies to manage and reduce resulting risks on a property and corporate level.|
3 Sep 2019
|Bank of England||Bank of England: Avoiding the storm: Climate change and the financial system speech, Sarah Breeden, Executive Director, International Banks Supervision, 15 April 2019||How prepared are business leaders/NEDs to assess, and accept, the significant financial risks and potential losses of global financial assets to their organizations that climate change presents?|
15 Apr 2019
|Bank of England||Climate Change||This page on the BoE’s website details the work the Bank is carrying out ongoing to assess and respond to climate-related financial risks.|
|Clyde & Co||Climate change: Liability risks for businesses, directors and officers. The coming wave of litigation.||Examines how assessments of climate risk, resilience and the opportunities created by the transition to a low-carbon economy and adaptation to climate change are being increasingly integrated into business decision-making.|
29 Mar 2019
|The Carbon Trust||The Carbon Trust: Aim higher: how business can help achieve 1.5ºC||The consequences of climate change are negative and formidable, including damage to infrastructure, disruption of supply chains, water scarcity and shifts in customer behaviour. How can businesses mitigate these risks by working to keep global warming below 1.5°C?|
|The Carbon Trust||The Carbon Trust: Titans or titanics? Climate change and business||How will the transition to a low carbon, environmentally sustainable future affect projected cash flows and company value? And as the drivers for an environmentally sustainable economy grow stronger, would your company consider changing products, services and business models?|
|The Carbon Trust||The Carbon Trust: Climate change – a business revolution?||What is the impact of a transition to a low carbon economy on companies and how can this transition affect projected cash flows and company value?|
22 Sep 2008
|The Better Boards Podcast||Emily Shuckburgh: talking on a “Better Boards” podcast. Are you aware?|
Would you like to know about climate science’s data and insights? Listen to Director of Cambridge Zero @emilyshuckburgh ‘s podcast
|Deloitte||A must read for Those Charged With Governance|
Investors, regulators and other business stakeholders are increasingly demanding better disclosures on climate change matters and challenging companies that are not factoring the effects of climate change into their critical accounting judgements.
Revenues, costs and asset lives could be impacted, and companies will need to reassess their future cash flow forecasts and related management judgements relating to impairment, asset retirement obligations, provisions, going concern and viability statements.
|Commonwealth Climate and Law Initiative||Directors’ Liability and Climate Risk. Australia, Canada, South Africa and the United Kingdom||This report represents a high-level summary of the detailed legal analysis contained in four country papers produced by the CCLI on directors’ duties and climate risk in Australia, Canada, South Africa and the UK.|
|Legal and General||A guide to climate governance||L&G: Why should companies disclose the impact of climate change on their business and performance and what governance procedures and disclosures should company Boards put in place to ensure that climate considerations are core, and comprehensively linked, to their business planning and strategy?|
|World Economic Forum||World Economic Forum in collaboration. with PWC: How to set up effective climate governance in corporate boards – guiding principles and questions||What governance principles are needed to increase directors’ accountability, climate awareness and their commitment to embed climate considerations into Board structures and stewardship?|
Disclosure - procedure
World Economic Forum
Prepared in collaboration with Deloitte, EY, KPMG and PwC
“As CEOs, we want to create long‐term value to shareholders by delivering solid returns for shareholders AND by operating a sustainable business model that addresses the long‐term goals of (the) society, as provided for in the SDG roadmap. At the same time, data on responsible business and sustainability is proliferating, enabling companies to better understand their impact and implement responsible strategies. What we seek is a general framework for companies to demonstrate their long‐term sustainability; a framework that integrates financial metrics along with relevant non‐financial criteria such as ESG considerations, gender equality, compensation practices, supply chain management, and other activities..”
|Financial Reporting Council||Climate-related corporate reporting – where to next?||This report has been developed to assist companies and provide practical guidance on how to meet investor expectations using the TCFD framework.|
22 Oct 2019
|Climate Disclosure Standards Board & Sustainability Accounting Standards Board||TCFD good practice handbook||This handbook identifies good practices in implementing the TCFD recommendations.|
23 Sep 2019
|Climate Disclosure Standards Board||TCFD Knowledge hub||A climate-related financial disclosure e-learning platform designed to help organisations fill the knowledge gap and enhance their disclosures of climate-related information. Launched 10 Sep 2019|
|ICAEW and The Carbon Trust||ICAEW in association with the Carbon Trust: Reporting on climate risks and opportunities: a practical guide to the recommendations of the taskforce on climate-related financial disclosures||Investors have joined the climate change debate and are demanding climate risk disclosures from companies they invest in. What are the TCFD’s recommendations to companies on how to report potential financial impacts from climate change on their businesses?|
|PwC||Guides to climate risk and disclosure/TCFD||Are business leaders and company boards equipped to address climate change? How to respond to the TCFD recommendations.|
|Task force on Climate-related Financial Disclosures||Visit website||The TCFD is a market-driven initiative, set up to develop a set of recommendations for voluntary and consistent climate-related financial risk disclosures in mainstream filings|
|Science Based Targets Initiatives||Science Based Targets Initiative: Visit website||Why should businesses adopt science-based targets as they act on climate change and what are the benefits to future growth of a corporate commitment to science-based targets and decarbonisation?|
Disclosure - perspectives
Alan Vinskey – FT
|Lex in depth: the $900bn cost of ‘stranded energy assets’||These companies (Climate Action 100) have 2,910 gigatonnes (GT) of potential CO2 emissions locked away in their assets. Two-thirds of that is coal, the rest crude oil and natural gas. The question investors must ask is how long these assets can hold their value. Ben Caldecott, director of Oxford university’s Sustainable Finance Programme, says: “Oil companies need to think about [preparing] themselves for when their cost of capital soars.”|
|Natasha Landell-Mills – FT||How to measure the impact of business on the planet||A global carbon tax would be by far the neatest policy solution: put simply it would force everyone to internalise the climate externality. The IMF estimates that to deliver the 2015 Paris climate agreement’s goal of keeping the global temperature rise well below 2C, we need a tax worth about $75 a tonne of carbon.|
|David Cumming – FT||Why asset managers cannot be passive on climate change||Climate change is causing the most significant shift in the investment universe I have seen in my 35 years in the industry. But if asset managers are to play a critical role, they must adopt a more radical approach. Our customers, particularly the next generation, regard climate change as the biggest global threat.|
|UBS||Mobilizing capital to help meet climate change goals: an investor’s perspective|
Addressing the climate challenge. Against that backdrop this paper addresses two key questions:
1.Why are current investment levels so far short of what we need to reach the Paris Agreement goals? Many investors want to direct their capital toward a lower-carbon future. The existence of that shortfall has been widely discussed, yet still it persists.
2. How can asset owners invest in a climate-smart future now? How do they integrate known climate risks within their investment decisions, identify and invest in products and solutions that can contribute to a lower-carbon world, while staying abreast of the regulatory and policy developments that could put the world on track to meet the goals of the Paris Agreement? In short, how do they align their investments to a climate-smart future?
|BlackRock CEO Larry Fink||Larry Fink’s letter to CEOs and clients||Blackrock asks companies to publish SASB- and TCFD-aligned disclosures, and as expressed by the TCFD guidelines, this should include the company’s plan for operating under a scenario where the Paris Agreement’s goal of limiting global warming to less than two degrees is fully realized.|
|By B Lab UK with the support and guidance of The B Team and Oxford University’s Saïd Business School||A playbook for business||The purpose of this playbook is to inspire and support businesses of all sizes who want to take climate action, declare a climate emergency and engage in meaningful climate advocacy. The playbook will present practical tools and resources for business executives and employees who wish to step up their commitment to transforming their organisation’s governance, operations and business models to address the climate emergency.|
|Influence Map||The world’s 15 largest asset management groups (with collectively $37Tn in assets in all classes), are overweight in companies deploying brown technologies in four key sectors: automotive, oil & gas, electric power and coal production, representing roughly 10% of global equity markets. Increasingly, forceful engagement with the companies in these sectors to hasten their transition to low carbon technologies must occur rapidly.|
|Boston Common Asset Management, LLC||Banking on a Low-Carbon Future: Finance in a Time of Climate Crisis – Impact report 2019||Boston Common’s study of how global banks are managing climate risks and opportunities.|
8 Nov 2019
|Dr Richard Carmichael, Centre for Energy Policy and Technology (ICEPT) and Centre for Environmental Policy (CEP) Imperial College London||Behaviour change, public engagement and Net Zero||This report considers the contribution of behavioural and societal shifts to delivering the long-term UK Net Zero target. It identifies opportunities for where shifts in behaviour could deliver deep emissions reductions and recommends policies that could help to deliver them.|
|Climate action 100+||Press summary: Investors are getting closer to a climate change tipping point by Stephanie Maier, director of responsible investment at HSBC Global Asset Management||Press summary of the Climate Action 100+ 2019 progress report. Investment giants to step up calls for corporates to set net zero goals.|
4 Oct 2019
|CalPERS, Wellington Management & Woods Hole Research Center||Calpers Wellington Physical Risks of Climate||This Physical Risk of Climate Change (P-ROCC) framework is a helpful guide for company management teams to integrate climate science-based scenarios into their strategic planning and disclosures|
|You Gov||International Climate Survey – summary findings and full results||A poll on perceptions around climate change during the period 11 June – 22 July 2019.|
15 Sep 2019
Disclosure - current reporting
|Transition Pathway Initiative||TPI report finds slow climate progress by high-emitting industries||Just 29% of the largest publicly-listed industrial companies are on course to align their emissions with those laid out in the Paris Agreement by 2030.|
|Carbon Disclosure Project (CDP)||“A list” companies 2019||CDP names 179 corporates as leaders in corporate transparency and action on climate change—North American companies represent 20% of the global A List (36)|
|Carbon Disclosure Project (CDP)||Making environmental action in procurement the new normal report||CDP brings together 125 global corporations and public sector organizations, with US$3.6 trillion in annual procurement spend, that request their suppliers report to them through CDP’s questionnaires regarding current and anticipated environmental risks and opportunities.|
|Carbon Disclosure Project (CDP)||CDP Worldwide: Global climate analysis 2019||Globally, how many companies say they integrate climate risk into their business strategy; how many have identified, and managed, climate related risks on their businesses; how many companies disclose the metrics and targets they use to assess climate related risk as part of their ongoing investor relations strategy?|
|Carbon Disclosure Project (CDP)||CDP Worldwide: Global climate analysis 2018||idem.|
|Accounting for sustainability||Financing our future update||A growing number of leaders from each part of the investment chain and wider capital markets community are taking action to direct finance towards sustainable outcomes. It is only through collective leadership and by reconnecting with individual savers, investors and beneficiaries, that we will find solutions to the barriers which remain.|
|Climate action 100+||Climate Action Progress Report 2019||Provides an overview of the activities that have been undertaken and observed progress against the initiative’s goal.|
2 Oct 2019
|Bank of America Merrill Lynch||Climate-geddon in reporting – a primer on TCFD||This primer highlights climate risk scenarios, TCFD requirements and a sample of disclosure from 40 companies and industry bodies across a number of sectors.|
12 Aug 2019