Economic Impacts of Climate Change: Exploring short-term climate-related shocks with macroeconomic models

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.

One Earth Climate Model: Sectoral Pathways to Net-Zero Emissions

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…

Insuring the net-zero transition: Evolving thinking and practices

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.

Foundations of Climate Mitigation Target Setting

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.

Managing Transition Risk in Real Estate: Aligning to the Paris Climate Accord

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 Climate Risk Tool Landscape: 2022 supplement

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.

Target Setting Protocol Second Edition

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…

Leadership strategies for client engagement: Advancing climate-related assessments

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.

Recommendations for Credible Net-Zero Commitments from Financial Institutions

This paper sets out a high-level framework for what a credible, transparent and comparable 1.5°C science-based commitment looks like and what it will mean for the real economy transition. By defining net-zero, this guidance helps financial institutions achieve consistency in target setting and implementation of their net-zero goals.

Good Practice Guide to Climate Stress Testing

UNEP FI’s Comprehensive Good Practice Guide to Climate Stress Testing is a detailed user guide for financial institutions looking to understand climate stress testing and develop plans for effectively executing them. It has been created to assist the financial sector in its climate stress testing journey and should be adapted to meet the needs of…

Key Takeaways from the UNEP FI Leadership Council

Download the key takeaways from the inaugural meeting of the UNEP FI Leadership Council which convened 20 CEOs of banks and insurers across six continents in November 2021 to debate how to further mainstream sustainable finance and accelerate the pace and scale of action worldwide. The wide-ranging discussion focused on disclosure of risks and impacts, and…

Scaling Blended Finance

The UN-convened Net Zero Asset Owner Alliance released the Scaling Blended Finance discussion paper investigating obstacles to investing in climate solutions in emerging markets and arguing that blended finance vehicles can provide the necessary structures to help close the existing funding gaps in climate investment globally. Moreover, the paper lays out the potential solutions for…

Climate risk regulation in Africa’s financial sector and related private sector initiatives

This report highlights the state of climate risk regulation in Africa’s financial sector and presents an analysis of the financial stability architecture and climate risk initiatives in 12 selected deep-dive countries. It also highlights challenges hindering the integration of climate risk by financial sector authorities in Africa and offers potential areas of support for the key stakeholders in the finance ecosystem.

Liability Risk and Adaptation Finance

UNEP FI has partnered with MinterEllison to examine the impact of litigation in adaptation finance and address some of the challenges in scaling up adaptation capital identified in the GCA Adaptation Finance Paper published in 2019. This collaboration led to the publication of “The Forgotten Climate-related Financial Risk: Liability Impacts on Adaptation and Adaptation Finance“ in April 2021. 

Aligning Finance for the Net-Zero Economy: Thought Leadership Papers 5 & 6

UNEP FI has partnered with EIT Climate-KIC to bring the Thought Leadership Series, which presents papers from some of the world’s leading thinkers to help guide the financial sector towards a sustainable future. Our aim is to inspire financial actors worldwide to move from risk to alignment, challenge current assumptions around climate alignment and develop ideas…

The Climate Risk Landscape: Mapping Climate-related Financial Risk Assessment Methodologies

The Climate Risk Landscape: Mapping Climate-related Financial Risk Assessment Methodologies provides a summary of the key developments across third party climate risk assessment providers since May 2019, including new and updated scenarios, methodological tools, key guidelines, as well as an overview of the changing regulatory landscape and potential developments into 2021. This report covers both…