This webinar provides an opportunity for financial institutions in Oceania and Asia Pacific to learn about progress being made towards developing methods for financial institutions to align their lending and investment portfolios with the ambition of the Paris Agreement.
More than 40 financial institutions globally have publicly committed to set emissions reduction targets through the Science Based Targets initiative (SBTi) and an additional 70 reported to Carbon Disclosure Project (CDP) in 2017 that they intend to set a science-based target (SBT) within the next two years. There are at least 10 financial institutions in Australia that have committed to do the same.
In 2018, the SBTi launched a project to help financial institutions align their lending and investment portfolios with the ambition of the Paris Agreement. The project audience includes universal banks, pension funds, insurance companies and public financial institutions.
Over the last six months financial institutions road tested the following methods across four asset classes (real estate, mortgages, electricity generation project finance, and corporate instruments including equity, bonds and loans):
Emission-based methods using the Sectoral Decarbonisation Approach;
Capacity-based method using the Paris Agreement Capital Transition Assessment (PACTA);
Portfolio coverage method using the SBT portfolio coverage.