Finance ClimAct, moving towards more sustainable financing

The world has already exceeded +1°C global warming compared to the pre-industrial period (1850-1900). Climate change has been definitively linked with severe and widespread consequences across the globe (see the World Weather Attribution initiative). Thus, adaptation to the current and future climate system is essential and must be taken into consideration alongside mitigation efforts. Thus, the ACT Initiative has developed an ACT Adaptation methodology that aims at assessing the quality and comprehensiveness of company’s adaptation strategy, from their physical risk analysis to their governance. It applies to companies from all sectors, size and geographical location. This ACT Adaptation draft methodology has been tested during a Road Test with 13 companies and the support of Climate Sense. We are pleased to announce the publication of the ACT Adaptation Road Test Report ! Download file

The production of this study is part of the cyclical operation of the Climate Transparency Hub (CTH). Following the analysis of 29 climate reports from French financial institutions for the year 2020, this study provides an overview of the state of climate reporting practices, based on the sample analysed. It is a study of the practices identified by the 29 proactive institutions supporting the CTH initiative, based on a matrix of analysis criteria. As part of the analysis of the 2020 reports, which are the last before the application of article 29 of the Energy and Climate Law, we have integrated into this analysis grid certain specific elements that will be expected in the next system. A focus is made on the most significant elements (taxonomic and fossil exposures, remuneration policy, means, objectives, risk management system, continuous improvement plan), materialized by a mention "New Art. 29 ECL" and a reminder of the new regulatory provisions introduced. This report is mainly intended for financial institutions subject to this reporting exercise in order to help them improve their practices. It will also be of interest to regulators and climate analysts who would like to observe the different responses given by financial institutions on specific questions of this dense and heterogeneous exercise. Download file