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Webinar

How to track progress on the implementation of climate action plans and objectives?

Presentation:

Once a financial institution defines a climate change strategy and related climate change objectives and targets, it needs to track and monitor the progress made and report internally to the senior management, as well as externally to the wider public. Some institutions have developed dedicated cross-institutional committees to support and oversee the implementation of their strategy.

The choice of indicators and KPIs to include in tracking and monitoring frameworks can be complex, particularly since increasing commitments around Paris alignment and the management of climate-related risks. Indicators may include absolute GHG emissions tracking of activities and portfolios, investments volumes supporting climate/green/aligned assets and activities. Selecting the most appropriate indicators is important as it can influence internal practices to deliver impact in the real economy, or risk of creating perverse incentives.

This webinar will be an opportunity for FI professionals from strategy and climate/sustainability departments to share their experience and hear from their peers.

Discussions will focus on the types of metrics and KPIs that have proven to be the most useful from an FI perspective to track and monitor:

  • Support for the transition (volume of finance, impact on real economy),
  • Alignment with mitigation goals (GHG emissions of portfolio, portfolio alignment tools such as PACTA?),
  • Climate-related financial risk exposure (carbon price, portfolio exposure),
  • Internal climate mainstreaming (trainings, focal points, organizational arrangements)

Agenda:

  • Introductory remarks (Secretariat) – 10 minutes
  • Roundtable open discussion – 40 minutes

Participants are invited to share their experience on a voluntary basis.

Proposed Guiding Questions for Discussion:

  • What type of metrics and KPIs have you chosen to track and monitor:
    • Support for the transition (volume of finance, impact on real economy),
    • Alignment with mitigation goals (GHG emissions of portfolio, portfolio alignment tools such as PACTA?),
    • Climate-related financial risk exposure (carbon price, portfolio exposure),
    • Internal climate mainstreaming (trainings, focal points, organizational arrangements)
  • How was the metric and the level of ambition defined? What were the trade-offs?
  • How were different issues taken into account when establishing the metrics to use?
    • Links with the core business strategy and climate/sustainability strategy
    • Links with transaction-level decision making
    • Links with incentives for management and operational teams
    • Data availability / transaction costs
  • What key recommendations would you have for your peers?
  • Conclusion: Discussion wrap-up – 10 minutes

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