Samira Boussem, CFA

Adaptation And Resilience Impact: A Measurement Framework For Investors This report presents a comprehensive guide for investors to assess the impact of their investments on adaptation and resilience in the face of climate change. Structure and Overview: It provides a conceptual model for assessing adaptation and resilience impact, highlighting the need for alignment with other approaches to measurement in this field. Five Dimensions of Impact: The framework outlines five key dimensions for assessing impact - What, Who, How much, Contribution, and Risk. These dimensions help investors evaluate the effectiveness and outcomes of their investments in adaptation and resilience. Adaptation and Resilience Metrics: A set of metrics is proposed covering various aspects such as people, planet, and economy, providing a holistic view of the impact. Aggregating Impact Metrics: It discusses the challenges and considerations involved in aggregating adaptation and resilience impact metrics. While aggregation may be facilitated by people-based, planet-based, and value-based metrics, caution is advised to ensure meaningful aggregation. Limitations of Aggregability: It acknowledges limitations to the aggregability of adaptation and resilience outcomes, particularly in terms of depth and specificity across the three aspects of impact - people, planet, and economy. Future Outlook: It encourages investors to look forward and consider the evolving landscape of adaptation and resilience, emphasizing the need for continuous assessment and improvement in impact measurement practices.  Adaptation and Resilience Impact framework offers a structured approach for investors to evaluate the effectiveness of their investments in promoting adaptation and resilience in the face of climate change. This would help them make informed decisions to support sustainable and resilient outcomes.

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https://lnkd.in/ebeSWkrT What s new on the current ESG reset and the current so called green revolution ? <<We have observed remarkable momentum across the sustainable finance market every year since the launch of the Sustainable Finance Group five years ago, and 2023 was no exception. In last year’s edition of this report, we anticipated that increasing sophistication of market participants and regulatory advancements would contribute to “a great reset” for ESG integration and sustainable finance. 2023 was indeed a year where we saw a leap forward in market maturity, and looking ahead to 2024, we consider three themes that reflect this continued progress: a focus on precision in terminology as the term ‘ESG’ enters its third decade of usage; pragmatic and credible solutions accelerating real-economy decarbonization; and a new era for sustainability-related disclosure as jurisdictions around the world contemplate a shift toward mandatory reporting.>> #ESG #governance #corporate #management #sustainability #resilience #metrics #taxobnomy #economy #competitivness #SustainableFinanceGroup #disclosure #audit #duedilligence #solutions #law #learning #opportunities #transition #career

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🌿 **CARBON MARKET: Towards Stricter Regulation** 📉 The volume of auctions within the carbon market is expected to be reduced by approximately 267 million allowances between September 2024 and August 2025. 💨 📊 These carbon allowances will be placed in the ETS Market Stability Reserve, a mechanism aimed at regulating the number of allowances in circulation and preventing market collapses, according to the European Commission. 🔄 🔒 This reserve is designed to absorb 24% of the permits to pollute in circulation when their total number exceeds 1,096 million. However, this number exceeded 1.1 billion in 2023. 📆 🚫 The European Commission specifies that as of January 1, 2024, more than 381 million allowances placed in the reserve expired because the cap of the mechanism set in EU legislation (400 million allowances) was exceeded. 📅 #CarbonMarket #Emissions #EU #Environment #StabilityReserve #Regulation

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📝 **TNFD and EFRAG Jointly Publish Mapping of Their Information Criteria** 🌿 On **Thursday, June 20**, the Taskforce on Nature-related Financial Disclosures (TNFD) and the European Financial Reporting Advisory Group (EFRAG) jointly published a mapping of the correspondence between the European Sustainability Reporting Standards (ESRS) and the information and metrics recommended by the TNFD. 📊 **Key points of this publication:** - **High level of similarity:** The mapping shows a high degree of correspondence between the ESRS and the 14 information recommendations by the TNFD. - **Objective:** Illustrate the consistency and alignment between European standards and the TNFD's recommendations. 🔍 **Importance:** This assessment highlights the integration of sustainability criteria into financial reporting standards, thereby strengthening transparency and consistency in sustainability reporting. 🔗 **Learn more:** [TNFD and EFRAG publish correspondence mapping](https://lnkd.in/eShhKAxi) 🌐 **#TNFD #EFRAG #Sustainability #ESRS #Transparency #FinancialInformation #SustainabilityReporting** 🌐

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We announced two major partnerships in the last 24 hours, sending unambiguous long term demand signals for nature based carbon removal solutions. The first is with Engie, who have partnered with us to source 5 million nature based removal credits at locked in pricing. While Engie's focus is on reducing carbon emissions, they acknowledge that reaching Net Zero across Scope 1, 2 and 3 by 2045 will imply removing unavoidable emissions during the energy transition. The second is with Deloitte, with whom we announced a strategic agreement that enables Deloitte's US clients to seamlessly access Catona's portfolio of high-impact carbon projects. Clients can access our nature based projects through Greenlight, Deloitte's carbon performance management solution. Greenlight covers a multitude of decarbonization solutions, from greenhouse gas footprinting, to developing their net-zero strategy and roadmap, prioritizing decarbonization initiatives, and mitigating unavoidable emissions. Both of these partnerships demonstrate how the voluntary carbon market is shifting toward long term, high impact nature based carbon removal as part of a suite of decarbonization solutions that all work toward credible net zero goals. https://lnkd.in/e7ijxUGU

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📌 ESRS Perspectives: materiality assessment ❕ EFRAG has just finalised its guidance on materiality assessment. We've compiled our analysis and views on this topic, highlighting the remaining challenges! 👉 You can now read this summary on our website: https://lnkd.in/eFGTg98k. #EuropeanSustainabilityReportingStandards #MaterialityAssessment #ESRSPerspectives #EFRAG #Sustainability #CorporateReporting Jona Basha, FCCA

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🔔 𝗡𝗲𝘄𝘀𝗳𝗹𝗮𝘀𝗵 | On 22 March 2024, the CSSF published an updated version of its supervisory priorities in sustainable finance, initially issued in April 2023. 💡 Discover the key takeaways right now and feel free to reach out to our funds and regulatory experts: Aurélia Viémont, Aurélien Hollard, Mélanie Poirrier, Julie Pelcé or Clémence Richard if you wish to discuss any aspect in further detail ➡️ https://lnkd.in/eGh5sMq8 #CMSLuxembourg #CMSLaw #Luxembourg #investmentfunds #regulatory #sustainability #sustainableeconomy #sustainablefinance

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#Publication | PensionsEurope report ''Road to DC: Understanding the Shift'' 📢Today, we publish our report ''Road to DC: Understanding the Shift''. ▶The paper was prepared by our Standing Committee Future of Pensions. It looks at the ongoing shift from traditional #Defined #Benefit (DB) pension schemes to #Defined #Contribution (DC) or #hybrid alternatives taking place in many European countries. 🔎Key Highlights 🔵EU landscape: Discover the allocation between DB and DC schemes across Europe 🔵Drivers of Change: Explore the factors leading to this shift. 🔵DB vs. DC shifting risks: Uncover the shift in risk allocation and potential outcomes on retirement income guarantees. 🔵Opportunities ahead: Discover the potential of DC schemes, offering expanded coverage and enhanced flexibility for retirees. 🔵Tailored solutions for DC schemes in Europe: Acknowledge the diversity in DC and hybrid arrangements across European nations in any regulatory approach. Read the report here 👇 https://lnkd.in/ep-R3_iA

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🎉 Good news for the convergence of frameworks on #Nature & #Biodiversity! 🤝 The Taskforce on Nature-related Financial Disclosures (TNFD) and EFRAG have jointly published a mapping of the correspondence between the European Sustainability Reporting Standards (#ESRS) and the #TNFD’s recommended disclosures and metrics. ✔️ The 14 disclosures recommended by the TNFD and the ESRS requirements are both designed to provide relevant and faithful information on nature-related sustainability matters. 🎯 Same objectives: #TNFD and the #ESRS recommend the need to disclose impacts, risks and opportunities related to nature as well as dependencies on nature to the extent that they generate material risks. 🔁 Double Materiality Assessment (#DMA): the ESRS require disclosures to be based on a dual materiality principle, and the TNFD allows a dual materiality approach to be used. 🧩 #LEAP approach: the ESRSs state that companies can carry out their materiality assessment on pollution, water, biodiversity and ecosystems using the LEAP approach. 👉 Press Release: https://lnkd.in/geweGzjp 👉 TNFD - ESRS Correspondance mapping document: https://lnkd.in/gRKRMfnN #biodiversity #csrd #esrs #nature

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👉 With an urgent need to adapt to growing #climate #change #risks, the financial sector not only faces significant risks from climate change impacts but also plays a crucial role in scaling up investments in #adaptation solutions and redirecting finance flows to climate-resilient activities and assets. The OECD - OCDE, and the Network for Greening the Financial System (NGFS) co-held a workshop at the OECD conference center in Paris on June 20, entitled "Assessing the Climate Resilience of Finance - From Physical Risk to Resilience Alignment." The workshop recognized to track progress, and inform policies and actions to increase the climate resilience of finance flows and stocks, major conceptual and data gaps needed to be filled. Bringing together experts and practitioners, the workshop looked to share knowledge on existing best practices to analyze physical climate risks in finance, and on further steps needed towards assessing adaptation opportunities and resilience alignment of the financial system. Joss Matthewman joined a panel session moderated by Jolien Noels entitled "Indicators of Corporate and Financial Strategies to Reduce Physical Climate Risks and Increase Resilience Alignment." Fellow panelists included Clare Everett, Amine Benayad, and Mahesh Roy, discussing examples of actions, typologies, indicators and the data currently being collected on adaptation by different actors. They highlighted how information about these actions and indicators can contribute to informing assessments in finance of both financial risks and alignment with climate-resilient development. Find out more about the workshop here: https://lnkd.in/eJQpxai2 #riskmanagement #resilience #climatechange #climaterisk

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[EVENT- ONLINE COFFEE WITH Qorus] 🔔 𝗦𝗔𝗩𝗘 𝗧𝗛𝗘 𝗗𝗔𝗧𝗘 - Integrating Biodiversity and Nature Risks into Climate Risks in Financial Institutions! 📩 Register now (free): https://lnkd.in/eSTpvATn 🚀 Join us for an event that brings to light the best practices, regulatory insights, and innovative approaches crucial for building resilience and sustainability in finance. 📌 Adlen Bouchenafa, Partner at TNP Trust, will provide expert insights! Whether you're at the forefront of risk management, investment, regulation, or research, this is your gateway to mastering the complexities of today's economy with an eye towards a sustainable future.   🔍 𝗘𝘅𝗽𝗹𝗼𝗿𝗲 the vital connections between biodiversity, nature risks, and climate change 🤝 𝗖𝗼𝗻𝗻𝗲𝗰𝘁 with leading minds in the industry 🌱 𝗛𝗲𝗹𝗽 𝘀𝗵𝗮𝗽𝗲 a resilient and sustainable financial landscape   #TNPTrust #Sustainability #Finance #Innovation

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What is important here is this;  ➡️ ESG risks will likely continue to build up, affecting debt repayment capacities as e.g. the low-carbon transition accelerates and the effects of physical #climatechange become more apparent. As a result, bond portfolios are faced with increased downside risk.  ➡️ The current methodology is a disadvantage for companies that are pursuing a sustainable transition, instead of incentivizing them by enhancing low-cost financing to accelerate the clean #energy transition. Ergo, what are actuaries doing to understand the dimensions of that risk in pension fund credit portfolios? How aware are they of the seismic shifts coming in credit downgrades? Underfunded pensions? Woah!

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#ECB's Historic #Fines for Climate #RiskManagement Failures Key Takeaways: - ECB sets a bold precedent by fining banks for inadequate climate risk assessments. - Daily accruing fines could push banks to swiftly enhance climate risk strategies. - A Europe-wide regulatory push contrasts sharply with the U.S.'s narrower approach. Further Insights 1. Unprecedented Action: The European Central Bank is fining several banks for not assessing their climate risk exposure timely, marking a first in terms of regulatory action to enforce climate risk management among banks. 2. Penalties Explained: Fines can reach up to 5% of a bank's daily average revenue, with the potential for both significant financial penalties and mitigated fines for banks that address deficiencies. 3. Regulatory Pressure: The ECB initially targeted 18 banks for potential fines, emphasizing a broader crackdown on financial institutions' failure to prepare for climate change-related risks. Closing Thoughts: As the ECB takes a firm stance on climate risk management, it triggers a critical question: Will this regulatory rigor inspire global financial institutions to follow suit, or further deepen the divide in global banking practices?

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Debates on measure and usefulness of financed emissions accounting: "Various methodologies have been developed over the last decade to link financial institutions’ portfolios to GHG emissions in the “real” economy, enable them to estimate exposure to climate-related financial risk and provide shareholders and investors a picture of how their financial activity impacts global climate change. Among these approaches, analysis and disclosure of “financed emissions” by financial institutions has become increasingly common (driven largely by the Partnership for Carbon Accounting Financials). Financed emissions methodologies extend the GHG protocol’s framework for emissions footprinting to capture the indirect emissions effects of financial activities. In general, financed emissions metrics at the portfolio level are derived from the aggregation of (a) a calculation of the GHG footprint of each company in a financial portfolio multiplied by (b) an “attribution factor” that captures the financial institutions’ share of the financial value of that portfolio company. This calculation has become popular because it provides a single measure of portfolio progress, because of the familiarity of the GHG protocol among relevant stakeholders, and because it provides third parties a practical means to attribute emissions to financial institutions. Critics of financed emissions have, however, pointed to two core methodological challenges. First, comparability between financial institution disclosures is hampered by the very different and often material assumptions buried in underlying calculations made by each financial institution. Additionally, the constant volatility of the denominator – measures of portfolio companies’ financial value – makes it difficult to interpret the relationship between the metric and actual real-world emissions at any given time. The new paper published today models volatility on a hypothetical financial portfolio of five high-emissions industries and compares the different methodological choices applied by financial institutions in calculating the metric. We found that the most commonly used attribution factor to calculate financed emissions – enterprise value including cash, or EVIC – exacerbates the effect of volatility on the metric. Using accounting metrics (like book value) to calculate financed emissions across the whole portfolio may potentially reduce – but does not eliminate – the impact of volatility while maintaining comparability." link in comments

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Good comprehensive read here by Attracta Mooney with Financial Times about the latest Banking on Climate Chaos report findings : JPMorgan Chase & Co., Mizuho and Bank of America were named as the biggest fossil fuel industry financiers last year, providing a total $6.9 Trillion to the sector in the eight years since the Paris climate accord. Citi was named the largest financier of companies EXPANDING fossil fuels with more than $204 billion supporting these activities since 2016. RBC lead the Canadian banks which also happened to be the world's largest financiers of the tar sands and had an outsized role in all deals. Just five Canadian banks accounted for 13% of all 2023 fossil financing despite their size. Those are RBC , Scotiabank , TD , BMO and CIBC #bocc #banking #bankingonclimatecrisis #climatefinance #sustainablefinance #sustainability

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🚨 European Union : ESMA Guidelines on fund names using ESG or sustainability-related terms 🚨 On 14 May 2024, The European Securities and Markets Authority published guidelines regarding the use of environmental, social, and governance (ESG) or sustainability-related terms in fund names. Sustainability-related names could influence investors' investment decisions, and these guidelines aim to prevent greenwashing practices. The Luxembourg regulator, the CSSF, has informed assets managers that these guidelines apply to the funds they manage, whether they take into account sustainability risks (Article 6 of the SFDR), promote investments with ESG characteristics (Article 8 of the SFDR) or invest in sustainable assets (Article 9 of the SFDR). Fund managers are thus expected to carry out a self-assessment of the use of the sustainability-related terms in the names of their funds and consider changes. Find out more in our latest client alert: https://lnkd.in/eBnukJcP     For further information on what these developments mean for your organization, please get in touch with Catherine Martougin and Laurent Fessmann.   Baker McKenzie Luxembourg Baker McKenzie   #ESG #Sustainability #Funds #ESMA #Policy #Guidelines #InvestmentFunds #Luxembourg #EU

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The Integrity Council for the Voluntary Carbon Market announces the first methodologies meeting its high-integrity Core Carbon Principles (CCPs). 🔍 **Key Highlights:** - Over 100 methodologies grouped into 29 categories for assessment. - Approved methodologies for destroying stockpiles of Ozone Depleting Substances (ODS), impacting 12 million carbon credits. - Approval for four methodologies for Landfill Gas (LFG) projects, covering 15 million carbon credits. 🎯 **ODS Methodologies:** - ACR’s Destruction of ODS from International Sources v1.0 - CAR’s Article 5 ODS Project Protocol v1-2 - CAR’s U.S. ODS Project Protocol v1-2 🎯 **LFG Methodologies:** - ACM0001 – Flaring or use of Landfill Gas v15-19 - AMS iii G – Landfill Methane Recovery v10 - ACR’s Landfill Gas Destruction and Beneficial Use Projects v1-2 - CAR’s US Landfill Protocol v6 🌱 **Conditions for ACM and AMS Methodologies:** - All LFG project types that do not generate electricity. - LFG-to-electricity projects with a capacity ≤ 10 MWe. CDM methodologies are under review, with the Integrity Council assessing various carbon-crediting programs. 📊 **Programs Approved as CCP-Eligible (98% market share):** - ACR - ART - CAR - Gold Standard - VCS (operated by Verra) Assessments are ongoing for Isometric, Puro.earth, and Social Carbon. 🔬 **Ongoing Assessments by MSWGs:** - MSWG 1: Improved Forest Management - MSWG 2: Sustainable Agriculture, Methane Avoidance, Nutrition/Nitrogen Management, Buffer Practices, ARR - MSWG 3: Renewable Energy - MSWG 4: REDD+ and JREDD methodologies - MSWG 5: Household Energy Demand - MSWG 6: Biochar, tech-based CCS, industrial biodigesters, and more Please get in touch if you have any needs with regards to the sale, purchasing or financing of carbon credits 🌏 #CarbonCredits #Sustainability #ClimateAction #IntegrityCouncil #VoluntaryCarbonMarket #CCP #Environment #GreenInitiatives #CarbonReduction

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TIC Council’s ESG Director, Marc Boissonnet, will be speaking at the event *CSRD: Implementation and Beyond* on 15 May at the European Parliament! Hosted by MEP Pascal Durand and organised by the Global Reporting Initiative (GRI) in collaboration with Lefebvre Sarrut, the event will dive into the Corporate #Sustainability Reporting Directive (CSRD), its implementation and how it will impact companies across the #EU. With the adoption of #CSRD in December 2022, the #EU took a significant step toward standardised #SustainabilityReporting and enhanced #transparency of companies' environmental and social impacts. The #TIC sector is recognised as an Independent Assurance Service Provider under CSRD, enabling companies to use our sector’s longstanding expertise in sustainability assurance for their reporting obligations. During the event, the CSRD Essentials - a comprehensive set of briefings designed to navigate the complexities of the new directive - will be released! Find out more 👉🏼 https://lnkd.in/dxNHienH #trust #testing #inspection #certification #GlobalStandards

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