Based on the case studies and the discussion held in relation to the four Work Streams, a number of over-arching trends are identified in the report on how climate change is being increasingly integrated by Supporting Institutions:
- Both public and private financial institutions are developing dedicated climate-focused strategic documents
This first trend is illustrated by the increasing number of case studies highlighting the adoption or update of climate strategic documents. This has been initially seen principally among public financial institutions, but a number of private institutions are now moving to enact similar dedicated plans and strategies.
- Supporting Institutions are rising to the challenge of developing the tracking and risk assessment methodologies and tools.
Both public and private financial institutions are increasingly deploying the tracking and risk assessment tools necessary to understand how their activities support or hinder climate action, and the associated risks. In a number of cases this has been in response to increased climate-related reporting and disclosure requirements at the national level. For example, this trend is illustrated by case studies submitted by private banks based in France. These institutions currently face the obligation to conduct increased climate-related reporting and disclosure (Article 173 of the French Energy Transition for Green Growth Act).
- Financial institutions are using an increasing range of approaches – such as sector-specific facilities – to support upstream project development and the achievement of the Paris Agreement
In many instances, a lack of a pipeline of robust projects at times limits financial institutions from financing climate-related investments. A number of Supporting Institutions have created facilities to help spur project development, at times focusing on specific barriers and to leverage investments for cities or to support the implementation of the Nationally Determined Contributions (NDC).
- Supporting Institutions are partnering with each other – as well as national and sub-national counter parties – to align investment with low carbon climate resilient development
A number of case studies highlighted how strong collaboration with national or sub-national authorities has been an element of success to foster investments in line with the implementation of the Nationally Determined Contributions or national / sub-national climate action plans.
This report presents the climate action story from the perspective of member Supporting Institutions. At its heart is a range of case studies to demonstrate how the 5 Voluntary Principles for Climate Mainstreaming are being put into practice. In many instances, these practices are no longer emerging, but have become core components of how financial institutions are doing business. Recognizing the range and variety of approaches taken to implement the Five Principles is essential and reflects the diversity of situations and contexts among financial institutions themselves.