2021 Annual Assembly

Climate Risk Workshop

Overcoming the methodological challenges in measuring climate-related risks: research advances & latest practice

September 27^th – 13:00-16:00 CEST

Objective of the workshop:

• Provide Supporting Institutions with an opportunity to learn about latest regulatory and methodological developments in assessing and managing climate-related transition, physical and liability risks.
• Permit exchanges and the sharing of lessons learned / experiences between peers among financial institutions on how they are identifying and managing these risks.

The discussion will be held strictly under the Chatham House Rule, participants will be free to use the information received, but neither the identity nor the affiliation of the speaker(s), nor that of any other participant, may be revealed. Following those rules, the Secretariat will circulate a summary of the discussion among participants and Supporting Institutions of the Climate Action in Financial Institutions Initiative.

Agenda

13:00 – 13:10    Introduction

SESSION 1: UPDATE ON REGULATORY CHANGES AND LATEST METHODOLOGICAL DEVELOPMENTS 

13:10 – 13:25    Update on Climate Risk and Financial Regulation – Jean Boissinot – Head of Secretariat, Network of Central Banks and Supervisors for Greening the Financial System (NGFS)

13:25 – 13:40    Update on latest methodological developments around physical climate risk, climate-related transition and liability risk – David Carlin, TCFD and Climate Risk Program Lead, UNEP FI

13:40 – 13:55    Q & A

13:55 – 14:00    Coffee Break

SESSION 2: PHYSICAL CLIMATE RISK ASSESSMENT – Chatham House rule

14:00 – 14:55    Experience sharing roundtable discussion

 Supporting Institutions will be asked on a voluntary basis to indicate where they are in the assessment of physical climate risks, what recent developments they have made, how they have overcome challenges, what are the next steps their institution is considering.

The below list presents indicative themes suggested for discussion during the roundtable discussion. The format is voluntarily open and flexible to allow for a free exchange on the internal challenges faced by financial institutions around climate risks. The aim is to be as practical and technical as possible to allow for fruitful takeaways for all participants.

• Implementation of methodologies and processes around physical risk management
• Data sources and experience working with consulting firms (pros and cons)
• Consistency between project, portfolio and counterpart climate change risks assessment
• Impact on credit ratings / financial risk assessment
• Link between risk and alignment assessments
• Internal uptake: specific training / communication tools for internal and/or external use

14:55 – 15:00    Coffee Break

SESSION 3: CLIMATE-RELATED TRANSITION RISK ASSESSMENT – Chatham House rule

15:00 – 15:55    Experience sharing roundtable discussion

Supporting Institutions will be asked on a voluntary basis to indicate where they are in the assessment of climate-related transition risks, what recent developments they have made, how they have overcome challenges, what are the next steps their institution is considering.

The below list presents indicative themes suggested for discussion during the roundtable discussion. The format is voluntarily open and flexible to allow for a free exchange on the internal challenges faced by financial institutions around climate risks. The aim is to be as practical and technical as possible to allow for fruitful takeaways for all participants.

• Implementation of methodologies and processes around transition risk management.
• Data sources and experience working with consulting firms (pros and cons)
• Relevance of integrating country specificities
• Exploration of the counterparty’s specific capacity to different transition pathways
• Impact on credit ratings / financial risk assessment
• Proxies or simplified information formats to be considered to address the issue of unperfect information
• Consistency between project, portfolio and counterpart climate change risks assessment
• Link between risk and alignment assessments
• Internal uptake: specific training / communication tools for internal and/or external use (how to reflect the range of potential transition pathways and impacts?)

15:55 – 16:00    Conclusion

 

 Strategic Discussion Session

 September 29^th – 14:00-16:00 CEST

 Context and Presentation

Each year, the Supporting Institutions of the Initiative are invited to participate in a round of strategic discussions on it’s aims, objectives and upcoming priorities.

The strategic discussion session of the Annual Assembly will include:

• A presentation of 2021 activities and outcomes, including the adoption of the Initiative’s 5 Year Strategy and Biennial Action Plan;
• A change in the name of the Initiative approved by the Coordination Group;
• The new suite of communications tools and website;
• An overview of upcoming events, including webinar topics identified for 2022.
• A consultation of the Supporting Institutions Assembly on the CG renewal process (call for nominations / interest to participate in CG and, if necessary, changes to structure of the Coordination Group).

Participants: Supporting Institutions of the initiative only

Agenda

14:00-14:15 –Welcome from the Coordination Group

14:15-14:45 – Part 1: Report of the Secretariat to the Annual Assembly

14:45-15:15 – Part 2: Update on rebranding and communications tools

15:15-15:30 – Part 3: Coordination Group renewal process

15:30-15:45 – Part 4: Priorities of Supporting Institutions for 2022

15:45-16:00 – Wrap-Up & Road Forward