Partnership between United Nations Environment and the global financial sector to promote sustainable finance
This briefing paper looks to the ocean, addressing the financial risks and environmental impacts associated with the exploration and production of offshore oil and gas. It takes into consideration the realm of environmental, financial, reputational, regulatory, operational and physical risks associated with these activities, and discusses how financial institutions should engage with and respond to this sector.
This report features new climate-driven macroeconomic shock scenarios developed with UK-based National Institute of Economic and Social Research (NIESR) as part of UNEP FI’s Taskforce on Climate-related Financial Disclosures (TCFD) Programme. It provides an in-depth analysis of the economic impacts of these scenarios for financial institutions and recommendations for using short-term scenarios.
Commissioned by the UN-convened Net-Zero Asset Owner Alliance and the European Climate Foundation, the One Earth Climate Model (OECM) provides a much-needed roadmap for sectoral decarbonization. By clearly defining scope 3 emissions, while avoiding double-counting, the model and the latest results offer detailed and standardised net-zero pathways for 12 industry sectors. This ground-breaking research, led…
This report aims to assist financial institutions wishing to embark on the journey of assessing, measuring, and reporting on their nature-related risks with a sectoral focus. The study also guides the development of potential tools and data collection methodologies, focusing on high-dependency and high-impact sectors as priorities for initial action, providing an overview of the…
This report identifies the availability and suitability of publicly available nature-related data to support financial decision-making in five case-study countries. Its findings and recommendations aim to inform data needs for successful disclosure frameworks, such as the Taskforce on Nature-related Financial Disclosures (TNFD), to be established. The challenges and recommendations are also of relevance for governments…
This report presents the results of a corporate sector market readiness assessment on their journey to acknowledge nature-related risk management – and how ready they are to embed these risks and opportunities to operations, towards a consistent reporting and disclosure approach. The report aims to create a clear understanding of the state of play of…
This primer aims at demystifying, shaping and advancing net-zero insurance thinking and practices. It has been produced by the UN-convened and member-led Net-Zero Insurance Alliance and looks at potential insurance underwriting approaches to net zero, key challenges and next steps.
As controllers and facilitators of capital, banks can be at the core of the systemic change needed to help decarbonise the economy to achieve a 1.5 degree temperature outcome. But leading this change requires banks to set and achieve ambitious, robust, and science-based targets – get started with the Foundations of Climate Mitigation Target Setting.
Dredging and marine aggregate extraction are highly damaging to seabed habitats but are needed for a number of sectors that can contribute to a sustainable blue economy. This briefing paper highlights financial, reputational and regulatory risks associated with dredging, setting out a pathway for positive change, and supporting a transition to more responsible practices.
The Principles for Responsible Banking Guidance Document is designed to support signatory banks’ implementation of the Principles. It provides non-binding guidance to banks on measures they can take to implement each Principle.
This discussion paper centers on investor engagement in support of the net-zero transition and the need for all institutional investors, especially asset owners, to explore new forms of engagement that accelerate decarbonisation in the real economy. In particular, the paper outlines and addresses the limits to corporate engagement being used alone. Although it is certain…
Real estate faces significant transition risks as economies decarbonize. To mitigate the impact of potential transition risks, financial institutions active in this sector must be proactive. This report assesses the state of real estate assets and the challenges it faces to align to net zero. It provides insights on the climate challenges confronting the real estate sector, and recommendations for addressing them.
The financial sector has a central role to play in assessing and managing climate-related risks. To do so, many financial institutions are working with third party providers to obtain the climate skills, information, and outputs they require. This report gives financial institutions insights into the process, challenges, and outputs related to using selected climate risk tools.
This paper is the product of a UNEP FI Reflective Cycle which investigated how a holistic and more locally driven approach to the SDGs could unlock private finance for climate change and other SDG topics in the MENA region. This process, which was conducted in Egypt and Morocco, combined desk-top research with a series of dialogues with experts and decision-makers from public and private entities from both countries.
A new report from Global Canopy and UNEP FI identifies key challenges that corporates and financial institutions face in assessing, managing and reporting on their nature-related risks. The report’s recommendations are intended to inform the forthcoming global framework for nature-related risk management and disclosures currently being developed by the Taskforce on Nature-related Financial Disclosures (TNFD). Download…
A science-based, actionable toolkit for banks, insurers and investors to align decision-making with a sustainable blue economy. The Diving Deep Guidance helps financial institutions to break the pollution cycle, including plastics and other solid waste, and manage the impacts of coastal infrastructure projects such as seawalls, while exploring the potential of nature-based solutions including mangroves and reefs. Featuring inspirational photographs by Cristina Mittermeier.
This joint report by UNEP FI and the European Banking Federation explores practical approaches for banks who wish to use the EU Taxonomy. This initiative, supported by EY, was developed based on discussions with 24 banks, 12 banking associations and six observing organisations, and follows a joint project in 2020 that tested the application of the EU…
Aligned with the very latest IPCC SR15 no/low overshoot pathways, the Protocol is intended to guide the Net-Zero Asset Owner Alliance’s members in setting more ambitious climate targets. The updates to the Protocol include: • Expansion of asset classes (target setting on infrastructure) • More ambitious reduction range for sub-portfolio targets • Doubling high-emission sector…
This report is designed to support the financial sector to improve assessment and interactions with clients in line with net zero plans. It has been created as part of the UNEP FI TCFD programme and builds on the University of Cambridge Institute for Sustainability Leadership’s Banking Environment Initiative Let’s Discuss Climate: the essential guide to bank-client engagement.
This report produced by the UNEP FI TCFD programme and ClimateWise explores the combined financial impact of physical and transition risks. It includes theoretical principles and practical steps for implementation of an integrated assessment of physical and transition risks with examples of sectoral analysis.