11 Banks heed Carney’s TCFD call to tackle climate risks
Banks Heed Carney’s Call to Tackle Risks of Climate Change: ‘Eleven major banks including Barclays Plc, Citigroup Inc. and UBS AG said they’ll seek ways to address the financial risks of global warming, after Bank of England Governor Mark Carney urged investors to act on the threat. The group, representing more than $7 trillion, started a pilot project to implement the recommendations of a taskforce set up by Carney to increase financial reporting standards on issues related to the environment.’ (Bloomberg, 11 July)
Risk of litigation for banks: The taskforce warned that banks can be exposed to climate risk through their borrowers, particularly if they provide loans to fossil fuel producers or agricultural and food companies. “Banks could also become subject to litigation related to their financing activities,” it said. (Bloomberg)
‘Representing over $ 7 trillion, the banks include ANZ, Barclays, Bradesco, Citi, Itaú, National Australia Bank, Royal Bank of Canada, Santander, Standard Chartered, TD Bank Group and UBS’ …The initiative will enable banks to follow the recommendations of the Mark Carney‑Michael Bloomberg Task Force presented at the G20 last week’ according to the UNEP FI press release (11 Jul), which includes statements by Shayne Elliott, CEO of ANZ that they “will be seeking greater disclosure from our customers about their climate related risks and opportunities.” and Jes Staley, CEO, Barclays PLC: that they will be “putting the theory into practice — or exploring how best the Recommendations can be implemented — and creating greater transparency for all participants.” Christian Thimann, head of strategy, sustainability and public affairs at the AXA Group said “After the G-20, the issue now is about implementation: how can the finance industry put the framework into practice and deliver disclosure that is meaningful?”
Shell CEO: Companies Have to Open Up About Climate Risks: Reuters report Shell CEO Ben van Beurden said climate change poses one of the biggest long-term risks to the global economy and companies, including big oil and gas firms such as Shell, have to be open about how the risks will affect them. In a LinkedIn blog he wrote “It is right that it should be transparent which companies are truly on firm foundations over the long-term. … Ignorance is not bliss. It is a threat to a bright future — and to a healthy planet — for all of us.”
One bank that hasn’t yet got on board is Commonwealth Bank of Australia, which is being sued by shareholders over lack of climate disclosure.
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