Climate Action in Financial Institutions
|Name of initiative||Climate Action in Financial Institutions|
|Secretariat|| The Institute for Climate Economics (I4CE) perfoms the role of the Secretariat of the Climate Action in Financial Institutions Initiative since December 2016.
I4CE 24 avenue Marceau 75008 Paris – France
|Organisational structure|| The current governance structure of the initiative comprises two bodies:
1) The Supporting Institutions Assembly consists of all financial institutions whose management has publically confirmed its support for the Climate Action in Financial Institutions Initiative and acknowledged the guidance provided by the voluntary Principles for Mainstreaming Climate Action within Financial Institutions. Supporting Institutions have also confirmed their interest in participating (on a voluntary basis) in the ongoing knowledge sharing and development of emerging operational approaches and practices linked to the voluntary Principles. The Assembly takes responsibility for high-level decisions, while day-to-day decisions are delegated to the Coordination Group.
2) The Coordination Group is a permanent body (with rotating membership of Supporting Financial Institutions) and which is supported by a secretariat. In 2016, representatives of 4 supporting institutions were nominated to undertake this role in its first term, each of them represents a constituency of Supporting institutions.
• EBRD representing Multilateral development banks • AFD representing International/bilateral/regional/national development banks • HSBC representing Developed country commercial financial institutions • YES BANK representing Developing country commercial financial institutions 3 ) The Secretariat is an independent entity that supports the Coordination Group for the implementation of its various tasks. Among its responsibilities, the Secretariat provides in depth inputs to the different work streams and the construction of the annual work plan and assists the Coordination Group in the organisation of meetings and the internal and external outreach of the initiative.
Since late 2016, the Coordination Group has selected the Institute for Climate Economics (I4CE) to house the Secretariat. I4CE has been involved in the area of mainstreaming climate action within financial institutions and has produced a number of reports on topics related to the initiative’s work streams.
|Name of lead organisation||I4CE|
|Type of lead organisation||Academic/Research institution|
|Location/Nationality of lead organisation||France|
|Description|| The Climate Action in Financial Institutions Initiative is an unprecedented coalition of 38 public and private financial institutions around the globe aiming to adopt a pathway to systematically integrate climate change considerations across their strategies, programs and operations. The Initiative is guided by 5 voluntary Principles for Mainstreaming Climate Action within Financial Institutions:
1. COMMIT to climate strategies; 2. MANAGE climate risks; 3. PROMOTE climate smart objectives; 4. IMPROVE climate performance; 5. ACCOUNT for your climate action.
|Objectives||The Climate Action in Financial institutions Initiative intends through its 5 voluntary Principles to make climate change considerations a core component of how financial institutions conduct business, parallel to and in addition to the necessary development of appropriate regulatory and enabling environments at the domestic and international levels. They imply a shift from incremental financing of climate activities to ensuring that climate change – risk and opportunity – is a fundamental consideration through which financial institutions deploy capital.|
|Activities|| The work of the initiative includes three activities:
1. Knowledge Sharing within the Financial Community: The Initiative will be a platform for sharing knowledge on “how” financial institutions integrate climate considerations across operations. Knowledge sharing activities will happen along each of the 5 voluntary Principles.
2.Dissemination of Emerging Practices and Lessons Learned: Recognizing that financial institutions may vary in “how” they integrate climate considerations, and recognizing that approaches and emerging practices may be replicable in other institutions, the voluntary Principles will collect and disseminate examples of emerging practices, inclusive of the lessons learned through the implementation of those approaches.
3.Collaboration among Supporting Institutions on Areas of Common Interest: Recognizing that there may be many more examples of “emerging practice” under some voluntary Principles than others, Supporting Institutions expressed a desire to collaborate on the development of new/innovative approaches where few currently exist. Collaboration on new approaches, as well as the possibilities to harmonize existing climate mainstream approaches/tools will form part of the work of the Initiative.
|One or two success stories achieved|
Monitoring and Impacts
|Function of initiative||Technical dialogue, Political dialogue|
|Activity of initiative||Knowledge dissemination and exchange, Awareness raising and outreach|
|Comments on indicators and goals|
|How will goals be achieved|
|Have you changed or strenghtened your goals|
|Progress towards the goals|
|How are you tracking progress of your initiative|
|Research and educational organisations||0|
|Regional / state / county actors||0|
|City / municipal actors||0|
|Financial Institutions||38|| International, bilateral, regional and national development banks: AFD, BNDES, BDMG, bio, BOAD, CABEI, CAF, Caisse des Dépôts Group, Group CDG Maroc, Caribbean Development Bank, cdp, DBSA, IDC, IsDB, Jica, KfW, FMO, NDF, Proparco, TSKB
Multilateral Development Banks: AFD, ADB, CEB, EBRD, EIB, IDB, IFC, MIGA, NDB, WBG Developed country commercial financial institutions: BNP Paribas, CA, HSBC, Societe Generale
Developing country commercial financial institutions: BMCE, IDBI, CGC, YES Bank
|Number of members in the years|| |
|Have only national states as participators||No|
|Transport||Agriculture||Forestry||Business||Financial institutions||Buildings||Industry||Waste||Cities and subnational governments||Short Term Pollutants||International maritime transport||Energy Supply||Fluorinated gases||Energy efficiency||Renewable energy||Supply chain emission reductions||Adaptation||Other||Resilience||Innovation||Energy Access and Efficiency||Private Finance|
Not only have national states as participators