1) Two papers were released by the Financial Stability Board (FSB) as part of its efforts to address the financial risks associated with climate change. The first report intends to promote uniform approaches across sectors and jurisdictions and to assist agencies in developing their techniques and efforts against climate change. The second report evaluates the advancements done over the past year made by the new global standard-setter, authorities and businesses.
Source: FSB publishes recommendations for supervisory and regulatory approaches to climate-related risks and calls for continued progress on disclosures
2) Scope 1, Scope 2, and Scope 3 greenhouse gas (GHG) emissions declarations from companies are now required by the ISSB following their meeting this October. The ISSB indicated that its standards will prioritise addressing investors’ information demands and opted to change language in the proposals that were unclear. Additionally, they revealed that the standards will be based on the Task Force on Climate-related Financial Disclosures (TCFD).
The proposed standards are expected to be fully discussed by the end of 2022 in order to publish the final standards as soon as possible in 2023.
Source: ISSB unanimously confirms Scope 3 GHG emissions disclosure requirements with strong application support, among key decisions
3) Volkswagen AG has been sued by the Church of England Pensions Board after repeatedly refusing to provide information necessary to understand its corporate environment lobbying actions. Investors have never before brought a case to court in Europe involving climate change. Hausfeld Rechtsanwälte LLP, a German law firm, will be representing the investors who are supported by the charity organisation ClientEarth.
“VW is failing to demonstrate that the lobbying undertaken and funded by the company through their industry association memberships is aligned to their own climate goals.” says Chief Responsible Investment Officer at Church of England Pensions Board, Adam Mathews.
Source: Church of England Pensions Board begins legal proceedings against German car manufacturer VW
4) The International Finance Corporation (IFC) and Environmental Finance released a report that analyses trends in the emerging market of financial institutions and green bond impact. As they transition from pre- to post-reporting for their green bond programs, financial institutions can follow a number of “best practice” impact reporting steps that can be found in the report.
Source: EM financial institution green bond impact reporting study published
Link to the Report: Emerging Market – Banks, Bonds, and Impact
5) The Transition Finance Guide, recently released by the Net Zero Banking Alliance (NZBA), offers advice and suggestions on the function of banks in connection to transition finance. On November 9, they will be releasing the Collective Progress Report which will provide a thorough understanding of the advancements their members have made so far.
Source: COP27 and beyond: An open letter from the NZBA Chair to members
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