Climate Dividends’ Post

🚀 𝗞𝗲𝘆 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗼𝗻 𝗖𝗹𝗶𝗺𝗮𝘁𝗲 𝗔𝗹𝗶𝗴𝗻𝗺𝗲𝗻𝘁 𝗳𝗿𝗼𝗺 𝘁𝗵𝗲 𝗘𝗦𝗚 𝗟𝗮𝗯! 🚀 As we all return from the summer break, it's a great time to reflect on our progress and share some of the innovative work we've been doing at the ESG Lab at the Institut Louis Bachelier. Over the past two years, our team has developed a methodology to estimate the climate alignment of portfolios, collaborating closely with various partners. 🔍 𝗪𝗵𝗮𝘁 𝗺𝗮𝗸𝗲𝘀 𝗼𝘂𝗿 𝗮𝗽𝗽𝗿𝗼𝗮𝗰𝗵 𝗶𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝘃𝗲? 🌍 𝗕𝗿𝗼𝗮𝗱 𝗔𝗽𝗽𝗹𝗶𝗰𝗮𝗯𝗶𝗹𝗶𝘁𝘆: Our methodology extends to asset classes that were previously unaddressed, such as personal loans and insurance policies. 📊 𝗚𝗿𝗮𝗻𝘂𝗹𝗮𝗿 𝗔𝗻𝗮𝗹𝘆𝘀𝗶𝘀: We employ a detailed sectoral and geographical approach to evaluate portfolios. 🔍 𝗗𝗲𝘁𝗮𝗶𝗹𝗲𝗱 𝗗𝗲𝗰𝗼𝗺𝗽𝗼𝘀𝗶𝘁𝗶𝗼𝗻: We breakdown each granular scenario into specific sectoral decarbonization levers. This enables us to estimate the potential for portfolio decarbonization over time based on specific decarbonization efforts. 📚 𝗪𝗵𝗮𝘁 𝗵𝗮𝘃𝗲 𝘄𝗲 𝗹𝗲𝗮𝗿𝗻𝗲𝗱? 𝟭. 𝗗𝗶𝘃𝗲𝗿𝘀𝗲 𝗗𝗲𝗰𝗮𝗿𝗯𝗼𝗻𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝗦𝗰𝗲𝗻𝗮𝗿𝗶𝗼𝘀: Through collaboration with Enerdata, we've observed that each country has its own unique sectoral decarbonization scenario. As a consequence, the most effective decarbonization strategy can vary greatly from one country to another. 𝟮. 𝗧𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺𝗶𝗻𝗴 𝗗𝗮𝘁𝗮 𝗶𝗻𝘁𝗼 𝗔𝗰𝘁𝗶𝗼𝗻: Climate scenarios provide a wealth of information, but translating this into actionable tools for financial institutions requires a deep understanding of both the scenario and the portfolio. 𝟯. 𝗖𝗼𝗹𝗹𝗮𝗯𝗼𝗿𝗮𝘁𝗶𝘃𝗲 𝗘𝗳𝗳𝗼𝗿𝘁 𝗡𝗲𝗲𝗱𝗲𝗱: Addressing the decarbonization challenge requires collaboration among all stakeholders in the most carbon-intensive sectors, including corporates, regulators, and financial institutions. Our quantification of the potential for decarbonization through the efforts of a single or small group of institutions underscores the importance of multi-stakeholder collaborative work. 🔜 𝗪𝗵𝗮𝘁’𝘀 𝗻𝗲𝘅𝘁? 𝟭. 𝗘𝘅𝘁𝗲𝗻𝗱 𝗼𝘂𝗿 𝗮𝗻𝗮𝗹𝘆𝘇𝗲𝘀 𝘁𝗼 𝗺𝗼𝗿𝗲 𝘀𝗲𝗰𝘁𝗼𝗿𝘀. 𝟮. 𝗜𝗻𝘁𝗲𝗴𝗿𝗮𝘁𝗲 𝗰𝗹𝗶𝗺𝗮𝘁𝗲 𝗮𝗹𝗶𝗴𝗻𝗺𝗲𝗻𝘁 𝘄𝗶𝘁𝗵 𝗰𝗹𝗶𝗺𝗮𝘁𝗲 𝗿𝗶𝘀𝗸 𝗮𝘀𝘀𝗲𝘀𝘀𝗺𝗲𝗻𝘁 𝘁𝗲𝗰𝗵𝗻𝗶𝗾𝘂𝗲𝘀, 𝗶𝗻𝗰𝗹𝘂𝗱𝗶𝗻𝗴 𝗮𝗱𝗮𝗽𝘁𝗮𝘁𝗶𝗼𝗻 𝗺𝗲𝗮𝘀𝘂𝗿𝗲𝘀, 𝘁𝗼 𝗮𝗱𝗱𝗿𝗲𝘀𝘀 𝘁𝗵𝗲 𝗱𝗼𝘂𝗯𝗹𝗲 𝗺𝗮𝘁𝗲𝗿𝗶𝗮𝗹𝗶𝘁𝘆 𝗼𝗳 𝗰𝗹𝗶𝗺𝗮𝘁𝗲 𝗰𝗵𝗮𝗻𝗴𝗲. If you're interested in diving deeper into our findings, check out the recording of our webinars from Dec 2023 and July 2024 where we discuss these insights in detail. https://lnkd.in/ePfazeGH We’re grateful for the progress we’ve made and look forward to further collaboration and exploration of solutions in this field. Gabriel Plantier Nestor Toroman Gabriel Levy Louis Boulanger Miruna Senciuc Bruno Lepoivre Jacques Després Véronique Berthout #Decarbonization #ESG #ClimateAction

#smartwatertwin_project members had the second round training for #public #policy making and analysis in #environmental sector (May 30th & June 7th 2024.). 📚Beside assignments for #policy briefs, we discussed understanding business operations through lecture but also practical workshop. Understanding what constitutes successful #business and how “market works is very important for developing #valuechain when implementing principles of #circulareconomy. --- Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or European Research Executive Agency (RE). Neither European Union nor the granting authority can be held responsible for them. Grant Agreement No 101060110.

🚀 Key Climate Alignment Insights from the ESG Lab! 🚀 Over the past two years, the ESG Lab has developed an innovative methodology to estimate the climate alignment of portfolios, covering previously overlooked asset classes. By collaborating with key partners, the ESG Lab has turned climate scenarios into actionable insights for financial institutions. Check out the latest findings and next steps ⬇️⬇️🌍📊 #Decarbonization #ESG #ClimateAction #SustainableFinance #ILB

Great lessons from this year's conference (also my first one). Importantly, I learned that any enterprise (including community) that models their entire business/project on generation of revenue from 100% carbon credits wont be viable. Selling credits need only be an *additional* revenue (and only small one). Guess what, the buyers also have other businesses (and buying credits) isn't even a major expense in their books The whole idea of Carbon Trading is to open another pathway to Net Zero. Not the only way we get there. A fellow attendee asked me how I see the Carbon Market panning out for the good old African continent. My answer was simple... just like Africa has performed in the other markets. Nothing changes here

🟢 International Foundation For Valuing Impacts (IFVI) release of environmental impact valuation factors enables investors to measure and compare, in monetary terms, companies’ environmental impact.💰 Last month in New York, alongside IFVI, we hosted over 200 investors, business leaders and academics to explore exciting and important new developments in impact accounting and the monetary valuation of impacts.   As our Chair, Nick Hurd, said in his address to attendees: ❝ To mobilise the capital at the scale required to meet the climate goals, we need to get to a world where companies, and governments, account for their impact in a meaningful way. It’s about putting a monetary value on impact, building it into financial statements, so climate is on the balance sheet.❞ The highlight of the event was IVFI’s release of thousands of environmental impact valuation factors, covering 430 different environmental impacts across 268 geographic locations. These are available now to enable companies, and their investors, to value their environmental impacts across air pollution 🌬️, land use🌿, waste ♻️ and water pollution. Read more https://lnkd.in/d9kAFm-f For the first time, investors will be able to rely on robust data to measure and compare in monetary terms the impacts created by companies. These ground-breaking resources will revolutionise how we account for sustainability in financial terms. IFVI, GSG Impact, and the National Partners are now ready to lead 🚀 the advance of mandatory impact accounting for over 50% of the world's investors and companies. This includes: 🌐 Disseminating data and insights to each country, 🎓 Leading training, capacity-building and advocacy work locally and globally, 🎯 Implementing pilot programmes with companies, investors, and regulators across multiple countries. To watch all the presentations from the event including speeches from Sir Ronald Cohen, George Serafeim, Nick Hurd, Rob Zochowski, Sebastián Welisiejko, Ibukun Awosika, David Blood, Rt. Hon. Gordon Brown, Allison Herren Lee, Ken Shibusawa, Vincent Siegerink, Nidhi Chadda, Elizabeth Rubin, Quyen Tran, Dan Osusky, and Tracy Palandjian, see the link in the comments. 📩 To keep up to date with all our developments subscribe to our newsletter 👉 https://lnkd.in/dnjWUceR #ImpactAccounting #SustainableFinance #impactaccounting #impactvaluation

📢 Today at #Innovate4Climate, we launched a new report, “Balancing Act: Political Economy and the Pursuit of Ambitious Carbon Pricing in Developing Countries”.    There’s no ‘one size fits all’ approach when it comes to carbon pricing, but a few common components of successful carbon pricing schemes include:    ✅Broad ownership ✅Stakeholder dialogue ✅Policy champions ✅Opportunities ✅Policy ecosystem ✅Policy iteration ✅Confidence   Learn about the political economy of carbon pricing in our blog :  https://lnkd.in/eb4dxHPx Or read the full report to find out more :  https://lnkd.in/eJv6pt9t

Is #RegenerativeAgriculture the future of finance? Join Klim at the European Financial Congress on June 10-12 in Sopot, Poland. This event brings together thought leaders to discuss the stability of the European and Polish financial systems and develop sustainable solutions. We’re proud to have Robert Gerlach, participating in a BNP Paribas-hosted panel on how the financial sector can help decarbonise and restore biodiversity in food production. Date: June 11, 2024 Time: 11:00-12:00 Venue: Marco Polo E Here’s a sneak peek at what will be discussed: 🌱 The role of biodiversity in reducing or removing GHGs from the food production sector. 🌍 How banks drive and integrate sustainable transformation efforts. 🤝 The importance of collaboration between regulators, the market, and financial institutions for successful transformation. We’ll share our learnings after the event, so be sure to stay tuned!

The full report is here!

Excited to be speaking at the #TIPSForum2024! TIPS (NPC) Join us as we discuss key topics on sustainable development and economic policy. Looking forward to insightful conversations and collaborations.

Check out ERF's working paper of August 2024, titled "Financial Inclusion and Threshold Effects in Carbon Emissions" by Nidhaleddine Ben Cheikh and Christophe Rault https://lnkd.in/dDKVxRAF