Partner: French Development Agency (AFD), International Development Finance Club (IDFC)
Agenda:
Moderator: Claire Eschalier, Head of Secretariat, Mainstreaming Climate in Financial Institutions
Stocktake of the discussions and emerging best practices, Claire Eschalier, Head of Secretariat, Mainstreaming Climate in Financial Institutions
Scene-setting presentation: David Carlin, Senior Adviser on Climate Risk, UNEP FI
Roundtable discussion with representatives from public and private institutions
- Effy Ritter, Associate Director, Head of Climate Risk, European Bank for Reconstruction and Development (EBRD)
- Orcun Yildizca, Manager, Engineering Department, Industrial Development Bank of Turkey (TSKB)
- Laurent Bergadaa, Sustainable Finance Expert, Strategy division, French Development Agency (AFD)
- Rodrigo Tosta, Manager, Environmental and Amazon Fund Management Department, Brazilian Development Bank (BNDES)
- Amal Benaissa, Head, Sustainable Finance, Bank of Africa
Conclusion: Claire Eschalier, Head of Secretariat, Mainstreaming Climate in Financial Institutions
Summary of discussions:
- David Carlin, Senior Adviser on Climate Risk, UNEP FI
UNEP FI identified major trends in the rapidly developing climate risk tool marketplace:
- Tool creators are partnering and larger players are bolstering their capabilities through acquisitions
- Transition and physical risk methodologies are being combined within tools
- Development of tools to meet specific regulatory expectations
- New physical risk data sources and improved data granularity
- Growing interest in machine learning, AI, and remote sensing data sources
- New transition risk scenarios and a focus on net zero
- Rising expectations of tool capabilities from FIs
- Effy Ritter, Associate Director, Head of Climate Risk, European Bank for Reconstruction and Development (EBRD)
EBRD got involved on TCFD as it aims to support clients in their transition and help them integrate the management of climate-related financial risks in their strategies.
Carbon transition risk is assessed for all clients.
Howewer this remains a challenging process as most clients don’t have the information needed for the assessment.
- Orcun Yildizca, Manager, Engineering Department, Industrial Development Bank of Turkey (TSKB)
TSKB’s Journey on Climate Risks:
- 2019-2020: TSKB Climate Risk Working Group was established
- 2020: TSKB became the only bank from Türkiye to participate in the UNEP FI TCFD Phase 2 Banking Pilot Progra!
- 2021: Became a TCFD Supporter & participated in UNEP FI TCFD Phase 3 Banking Pilot Program
- 2022: Climate Risk Evaluation Tool is developed + Quantification of Climate Risk & Pathway to Net Zero
- Larent Bergadaa, Sustainable Finance Expert, Strategy division, French Development Agency (AFD)
AFD’s strategy on climate-related financial risks (CFRs):
- Integrate CFRs in AFD’s operations and risk management
- Supporting partner financial institutions, central banks and regulators in adopting CFR frameworks
- Mobilising CFRs for climate policy dialogues
- Outreach and contributing to the uptake of CFR frameworks in the international financial community
- Rodrigo Tosta, Manager, Environmental and Amazon Fund Management Department, Brazilian Development Bank (BNDES)
Rodrigo Tosta highlighted the need to build capacity and understand how clients are approaching climate risks.
- Amal Benaissa, Head, Sustainable Finance, Bank of Africa
Amal Benaissa confirmed the challenge of the access to data and highlighted the need to integrate opportunities and not just risks.