Finextra Research and ResponsibleRisk are collaborating with change agents in the sustainable finance arena to showcase a programme of content, workshops and conferences.
Designed to provide actionable strategies, the SustainableFinance.Live event series will focus on debunking the myth that value cannot be created by meeting sustainability goals and how revenue can be generated through trustworthy implementation of what is referred to as ESG (environmental, social and governance) measures.
The invite-only event series is made up of three Co-Creation Workshops on commercial banking (December 2019), wealth management (February 2020) and retail banking (April 2020) and a larger conference, SustainableFinance.Summit in June 2020, aimed at involving small groups of industry participants from financial services, working together to develop informed strategies and actionable ideas.
In 2020, the Financial Conduct Authority (FCA) will implement new rules that will require certain entities to report in line with the Task Force on Climate-related Financial Disclosures (TCFD).
This follows Bank of England governor Mark Carney’s speech at the UN Climate Action Summit in which he stated that “the demand for TCFD disclosure is now enormous.
“Current supporters control balance sheets totalling $120 trillion and include the world’s top banks, asset managers, pension funds, insurers, credit rating agencies, accounting firms and shareholder advisory services.”
While 80% of 1120 top G20 companies are currently disclosing climate-related financial risks as per the recommendations of the TCFD, the next step is ensuring that these disclosures are mandatory for risk management.
“Changes in climate policies, new technologies and growing physical risks will prompt reassessments of the values of virtually every financial asset.
“Firms that align their business models to the transition to a net zero world will be rewarded handsomely. Those that fail to adapt will cease to exist. The longer meaningful adjustment is delayed, the greater the disruption will be,” Carney said.
The Bank of England will be the first regulator to stress test its financial system against different climate pathways and prioritise risk management so that the global financial services industry is more responsive to climate policies.
In addition to this, climate disclosure is expected to support financial markets in recognising that “sustainable investment is the new horizon that can bring enormous opportunities ranging from transforming energy to reinventing protein.”
Financial institutions, technology companies and fintech firms need to ready themselves for more intense disclosure over the coming years as climate risk becomes a mainstream financial risk.
Finextra Research and ResponsibleRisk will be focusing on the reporting process and how this is impacted by the traceability and veracity of data as the industry transitions to a low-carbon economy at the first Co-Creation Workshop on Wednesday 4th December at 6, Alie Street in London.
The workshop will also highlight whether sustainable finance reporting should focus on the performance of companies or the performance of assets, what can be done to supply more green bonds and how can businesses explore opportunities to diversify their bond portfolios by incorporating social and sustainability factors.
Register your interest here for our inaugural event, where you can discuss what is driving the demand for sustainability and why companies are struggling to meet the benchmark set by the UN General Assembly’s Sustainable Development Goals (SDGs).