1、Shaping the climate action journey for financial institutions Navigating through the cluster of climate initiatives 2 Nowadays, climate change is an ever-present topic for the financial industry. With the world heading towards more than 3C of warming based on current policies, the requirement for ur
2、gent action is ever greater. Financial institutions are one of the major stakeholder groups responding to this emergency. This is not only because of the financial implications of the potential 5 20% loss of global gross domestic product (GDP) each year1, but also the tremendous need and opportunity
3、 to contribute to the transition to a low-carbon, resilient society. 1 UNEP FI (2019) https:/www.unepfi.org/climate-change/climate-change The goal of limiting global warming to well below 2C is clearly defined by the Paris Agreement. To trigger changes in capital flow and signals for all actors, it
4、is key for the financial industry to acknowledge and support accelerated decarbonisation. Understanding where and how to start is a logical first step. Banks and investors should be aware of the different areas of climate actions and how existing initiatives can support financial institutions (FIs)
5、on implementation as well as complement one another. Understanding this landscape will help FIs at different levels of progress to identify the most efficient support available to scale their climate efforts. Shaping the climate action journey for financial institutions Navigating through the cluste
6、r of climate initiatives 3 Measuring the financed emissions of a portfolio is the foundation enabling financial institutions (FIs) to perform scenario analysis, set targets, inform actions and disclose progress. These areas jointly are crucial for portfolio alignment and decarbonization. Climate act