2021-06-14-未知机构-Sustainable_Finance_Tracker_27页_1mb

Credit Suisse ESG Research Summary

Core Content

This document outlines the progress and developments in sustainable finance and ESG-related policies and initiatives from Credit Suisse's ESG Research team as of June 15, 2021. It highlights the increasing integration of ESG considerations across the financial system, the role of central banks in managing climate risk, and the evolving commitments of major financial institutions to net zero financed emissions.

Main Points

1. Key Sustainable Finance Developments Since February Update

• Climate Actions at Unprecedented Levels: Climate initiatives have gained significant momentum across all financial market participants, with the formation of the Glasgow Financial Alliance for Net Zero (GFANZ) in April 2021 to align and accelerate climate actions ahead of COP26.
• Central Banks Taking Lead: Central banks are enhancing their regulatory actions, including mandatory climate risk disclosure, stress testing, and scenario analysis. The Network for Greening the Financial System (NGFS) has improved its climate scenarios, potentially setting a new benchmark for climate risk assessments.
• Banks Commit to Net Zero Financed Emissions: Since February, sustainable financing commitments from 27 tracked banks have more than doubled, reaching over $11 trillion. Over 40% of this increase is for social purposes, and banks responsible for over 65% of fossil fuel financing have committed to net zero by 2050.
• Sustainable Debt Market Growth: Sustainable bond issuances have surged, with potential to reach $1 trillion in 2021. Sectors like consumer staples, energy, and materials are showing the fastest growth.
• ESG Fund Flows Remain Strong but Less Pronounced: ESG net inflows reached $185 billion in Q1 2021, but equity outperformance compared to 2020 has diminished, indicating some cooling in ESG investment trends.

2. Government Policy/Support Update

• Climate Pledges Outpace Policies: 131 countries, responsible for ~73% of global GHG emissions, have set net zero targets, but current policies are not sufficient to meet the Paris Agreement 2030 targets.
• Improved Climate Pledges: Recent stronger 2030 targets have reduced the projected warming to 2.4°C by 2100, compared to 2.6°C in February.
• US Government Involvement: The US is making progress in climate-related mandates, with the SEC requesting public comments on climate risk disclosures and the Treasury establishing a Climate Hub and appointing a Climate Counselor.
• Bipartisan Challenges: The US Infrastructure Bill faces challenges in gaining bipartisan support, with the Biden administration aiming to pass most elements through budget reconciliation if negotiations fail.

3. Central Banks and Climate Risk Management

• NGFS Expands: The NGFS now includes 91 members, representing over 80% of global emissions and overseeing all systemically important banks.
• Regulatory Leadership in Europe: The ECB and Bank of England are leading in climate-related regulatory actions, including stress testing and disclosure guidelines.
• Four Priorities by Mark Carney:
  • Mandate climate risk disclosure based on TCFD recommendations.
  • Build climate risk management expertise across central banks.
  • Mainstream use of climate scenarios in risk management.
  • Address central banks' own operations by tilting portfolios toward climate-friendly investments.

4. Major Financial Market Participant Update

• Banks Increasing Sustainable Finance Commitments: Banks are significantly ramping up their sustainable finance pledges, with many committing to net zero financed emissions by 2050.
• Notable Banks: JPMorgan Chase and Barclays have set clear methodologies and sector-specific targets for reducing financed emissions. JPMorgan's targets include a 35% reduction in Scope 1 and 2 emissions and a 15% reduction in Scope 3 emissions by 2030, while Barclays aims for a 15% reduction in emissions from fossil fuel production by 2025.
• Global Impact: Banks collectively responsible for over 65% of fossil fuel financing have made net zero commitments, signaling a significant shift in the financial industry's approach to sustainability.

Key Information

• Total Sustainable Financing Commitments: Doubled from ~$5 trillion to >$11 trillion since February 2021.
• Social Purpose Financing: Over 40% of the increase in sustainable financing is allocated to social purposes.
• NGFS Scenarios: The updated NGFS scenarios provide a more rigorous framework for climate risk assessment and are expected to become a standard for financial institutions.
• ESG Fund Flows: Reached $185 billion in Q1 2021 with 169 fund launches, but equity outperformance has declined.
• US Climate Hub: Created to promote climate-friendly investments and understand climate-related financial risks.
• Bipartisan Struggles: The US Infrastructure Bill faces challenges, with the Biden administration planning to use budget reconciliation to pass the bill without Republican support.

What to Watch

• The progress of climate policies around COP26.
• The implementation of mandatory climate-related financial disclosures.
• The effectiveness of central banks in managing climate risk and influencing market behavior.
• The success of the Net Zero Banking Alliance in setting and achieving 2030 targets.
• The potential impact of the US Infrastructure Bill on the climate agenda and ESG investment.