1) The findings of the European Central Bank’s (ECB) review demonstrate that banks still have a long way to go before they are able to manage climate risks. To counter this, ECB set a deadline so that by 2024, banks will meet the expectations that were released in the Guide on climate-related and environmental risks in 2020.
While the review shows that previous practices led to progress, almost 96% of banks still have blind spots in identifying climate risks.
Link to Guide released in 2020
Source: ECB sets deadlines for banks to deal with climate risks
2) The UN-convened Net-Zero Insurance Alliance (NZIA) decided that the Alliance’s Version 1.0 of the Protocol will now allow members to independently set research-based , decarbonisation goals for their individual insurance portfolios that are aligned with the net zero transition. In January 2023, the NZIA Target-Setting Protocol’s final Version 1.0 will be released.
The Alliance is closely working with the Science Based Targets Initiative (SBTi) to develop the Protocol.
3) After a board meeting held on November 1, ISSB decided that is now a requirement for companies to identify climate-related risks and opportunities to support their disclosures and report on climate resilience using climate-related scenario analysis. The ISSB is using the Task Force for Climate-Related Financial Disclosures (TCFD) as guidance and will build on it. The ISSB will clarify on which climate scenarios a company should use.
Source: ISSB confirms requirement to use climate-related scenario analysis
4) The Glasgow Financial Alliance for Net Zero’s (GFANZ) 2022 progress report is reinforcing the alliance’s aim to let member organisations choose their own course to net zero rather than compelling them to strictly adhere to the guidelines of the UN-backed Race to Zero (RtZ) program. Members are now expected to “take note of the advice and guidance” and “engage actively with them”.
Source: GFANZ ‘Quiet Quits’ Race to Net Zero
5) The European Commission is anticipated to receive the ESRS final draft from EFRAG in November, according to the European Securities and Markets Authority (ESMA). The ESRS draft is a “key element” for the CSRD and its objectives of directing sustainability reporting according to ESMA’s statement back in August.
Source: Sustainable finance committee calls for solid framework for corporate reporting standards
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