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.  This high-level briefing…

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…

Pathways to Paris: A practical guide to climate transition scenarios for financial professionals

Pathways to Paris’ is a practical guide for financial practitioners looking to understand and apply climate scenarios. Co-authored with the Center for International Climate Research (CICERO), a world-renowned research institution on climate and climate finance, the report examines the driving assumptions and sectoral coverage of the models used to produce climate scenarios, as well as…

Decarbonisation and Disruption: Understanding the financial risks of a disorderly transition using climate scenarios

‘Decarbonisation and Disruption’ highlights the ways in which many sectors are exposed to transition risk. If not properly managed, a disorderly transition could have major ramifications for financial stability. Financial institutions need to not only prepare for the transition along with their counterparties but must have the right tools for risk assessment. This paper was…

Aligning Finance for the Net-Zero Economy: Thought Leadership Papers 3 & 4

UNEP FI is continuing its partnership with EIT Climate-KIC to bring some of the world’s leading thinkers to contribute to a series of thought leadership papers. Our aim is to inspire financial actors worldwide to move from risk to alignment, challenge current assumptions around climate alignment and develop ideas and concepts on how alignment can…

Promoting Sustainable Finance and Climate Finance in the Arab Region

This report analyses the climate change related risks countries in the Arab region are facing such as water scarcity, rising sea levels, drought, land degradation and desertification. It sheds light on the existing strategies and policies on climate adaptation and mitigation in the region, and emphasizes the importance of sustainable finance resources in transitioning to…

Collective Commitment to Climate Action: Year One in Review

The Collective Commitment to Climate Action (CCCA) is the most ambitious global banking sector initiative supporting the transition to a net zero economy by 2050. It brings together a leadership group of 38 banks from across all six continents who have committed to align their portfolios with the global climate goal to limit warming to…

Beyond the Horizon: New Tools and Frameworks for Transition Risk Assessments from UNEP FI’s TCFD Banking Programme

Beyond the Horizon: New Tools and Frameworks for Transition Risk Assessments from UNEP FI’s TCFD Banking Programme Thirty-nine global financial institutions from six continents participated in UNEP FI’s second TCFD banking programme. Through this yearlong engagement, the participating banks collaborated with climate risk experts and each other to improve financial assessments of transition risk. In…

Climate Risk Applications: Guidance and Practices

From Disclosure to Action: Applying TCFD principles throughout financial institutions Recent reports from the Network for Greening the Financial System (NGFS) and the Commodities Futures Trading Commission (CFTC) indicate how the financial sector has increasingly recognized climate risk as a financial risk. Financial institutions must respond to the threat of climate change by identifying, assessing,…

UNEP FI and IIF’s “TCFD Report Playbook”

UNEP FI and the Institute of International Finance (IIF) have developed a TCFD Playbook to serve as a resource for firms at different stages of their TCFD journey, with support from EY. The organisations conducted a joint initiative to assist banks and other financial institutions in their efforts to strengthen climate risk disclosures by convening…

Using hindsight and foresight: Update from the TCFD Pilot Project for Insurers

Using hindsight and foresight: Enhancing the insurance industry’s assessment of climate change futures Over the past eight months, 22 leading insurers and reinsurers from across the globe (“the pilot group”) have been collaborating under the auspices of UN Environment Programme’s Principles for Sustainable Insurance Initiative (PSI) to explore and pilot methodologies that insurers can use towards implementing the recommendations of the Financial…

Charting a New Climate: TCFD Banking Programme Report

Charting a New Climate: State-of-the-art tools and data for banks to assess credit risks and opportunities from physical climate change impacts Charting a New Climate is a report on physical climate risks and opportunities from Phase II of its Task Force for Climate-related Financial Disclosures (TCFD) Banking Programme with climate risk advisory and analytics firm,…

2 September 2020

Aligning Finance for the Net-Zero Economy: Thought Leadership Series

UNEP FI has partnered with EIT Climate-KIC to develop a series of thought leadership papers that aims to inspire financial actors worldwide to move from risk to alignment, challenge current assumptions around climate alignment and develop ideas and concepts on how alignment can best be achieved. We hope to encourage stakeholders that a proactive climate…

Climate Thought Leadership

Five years after the Paris Agreement, along with IPCC’s call for urgent action to prevent climate change catastrophe in the coming decade, 2020-21 has been billed as a key year for climate action. The COVID-19 crisis this year has marked a point of transformation for our economy and society by demonstrating how remarkable and rapid…

Cómo los bancos incorporan el cambio climático en su gestión de riesgos

This report aims to present the survey results of “How the Banks of Latin America and the Caribbean (in Spanish, ALC) incorporate climate change in their risk management,” which aligns with the first global initiative exploring what regional banks are doing to integrate dimensions of climate change in their strategy and management.

Changing Course: Real Estate – TCFD pilot project report and investor guide to scenario-based climate risk assessment in Real Estate Portfolios

Twelve institutional investors from eight countries, convened by UNEP FI and supported by Carbon Delta, have worked throughout 2018–2019 to analyse, evaluate, and test, state-of-the- art methodologies to enable 1.5°C, 2°C, and 3°C scenario-based analysis of their direct property investment portfolios in line with the recommendations of the FSB’s Task Force on Climate-related Financial Disclosures…

G20 Energy Efficiency Finance and Investment 2019 Stocktake Report

Banks, investors, insurers and regulators are increasingly analyzing and adapting their financial strategies taking into account the risks and opportunities presented by the clean energy transition. Investments in renewable energy are currently a standard practice for most financial institutions. Investments in energy efficiency are also growing, yet their transaction size is small in comparison. Nevertheless,…

Driving Finance Today for the Climate Resilient Society of Tomorrow

UNEP FI partnered with Climate Finance Advisors to deliver this report to the Global Commission on Adaptation. It identifies the main barriers in the financial system to accelerated investment in adaptation-related programmes and projects and proposes six sets of recommendations to unlock the financing of adaptation programmes. Even if we reduce our greenhouse gas emissions…