Sustainability Policy | MSc Sustainable Finance | Seneca College Sustainability Instructor for Executive Certificate| Climate and Social Risk | ESG Regulatory Policy
The United Nations Environment Programme Finance Initiative (UNEP FI) has released new guidelines on #Climate #TargetSetting for #banks. Some key highlights on changes include: These new guidelines support climate action through the use of science-based scenarios, broader inclusion of activities in the commitments, and stronger disclosure and accountability mechanisms. ✅ Inclusion of capital market activities in the updated version expands the scope of targets significantly. For some banks, capital markets arranging and underwriting services provided to clients in the issuance of new debt and equity instruments are their largest source of attributable greenhouse gas emissions. ✅ Clarified expectations on disclosures around the coverage of targets. Asking banks to disclose what share of the financing in a sector or portfolio a target covers helps stakeholders better understand how they are managing the emissions attributed to their business activities. ✅ Other updates improve the depth of disclosures and will help banks to provide clearer, more comparable information to investors and other stakeholders. Updates build on the previous version of the Guidelines and ensure the new one reflects improvements in regulation, data, and methodologies over the last three years. They include updated guidelines around how to approach stakeholder engagement, and transition planning. https://lnkd.in/e4iqeGwR)
