Australian regulator issues long-awaited climate risk guidance
Australia’s prudential regulator unveiled long-awaited guidance for banks, insurers and pension funds on managing and disclosing climate-related risks, including physical, transition and liability exposures. Issuing a draft version for consultation, the Australian Prudential Regulation Authority (APRA) said the guidance paper did not create new requirements or obligations, but gave more clarity about its expectations.
ESG, the abbreviation that has taken the investment world by storm over the last few years, is plagued by vague use of terminology, untargeted solutions, and half-hearted commitments. The term’s use by the investment community has increasingly become one of form over substance: too often claims of ‘responsible’ behaviour matter more than evidence. Does loose interpretation and implementation of the term do more harm than good for the sustainable investment movement and thereby hinder the efficient reallocation of capital?
We could spray the atmosphere with particles that reflect sunlight or fertilize algae to grow and take up more CO2. We could release minerals that react with CO2or capture the gas directly from the air. These are some of the geoengineering techniques suggested to dampen the temperature increase caused by humans.
Around the globe, a third of all professionally managed assets, or roughly USD$30 trillion, are now subject to environmental, social, and governance (ESG) criteria, which represents an increase of more than 30% since 2016.1 ESG concerns continue to gain importance in Canada. In particular, sustainable finance has also gained tremendous momentum and institutionalization in the investment, capital markets, and lending communities.
A Reminder About How the Climate Crisis Is Affecting Our Redwood Forests
In 2016, Chelsea Iversen published a phenomenal piece in The Bold Italic that went into how the climate crisis would affect California’s redwoods — four years before a series of historic fires would decimate groves of them. February of this year was the warmest one on record; despite a global pandemic that’s confined us to our indoor dwellings over the past twelve months, we’re now firmly in a post-415ppm carbon dioxide world.
‘If you want a scary story:’ Agriculture, human health and ecosystems at risk as Illinois’ climate is quickly changing, report shows.
Illinois’ climate is swiftly changing, becoming warmer and wetter and signaling long-term shifts that could push people, cities and ecosystems to the brink. If the planet fails to curb greenhouse gas emissions, what’s ahead could be more worrisome.
EIOPA releases report on climate change risk scenarios in ORSA
The European Insurance and Occupational Pensions Authority (EIOPA) has released a report which explores the use of climate change scenarios in the Own Risk and Solvency Assessment (ORSA) addressed to national supervisory authorities.
Climate changeWithin the report, EIOPA set out expectations on the supervision of the integration of climate change risk scenarios by insurers in their ORSA.