气候相关和可持续金融市场报告-ngfs_report_sustainable_finance_market_dynamics

Network for Greening the Financial System Technical document Sustainable Finance Market Dynamics: an overview March 2021NGFS Technical document MARCH 2021 This report has been coordinated by the NGFS Secretariat/Banque de France. For more details, go to www.ngfs.net and to the NGFS Twitter account @NGFS_ , or contact the NGFS Secretariat sec.ngfs@banque-france.fr NGFS Secretariat This document was prepared by the “Scaling up Green Finance” workstream of the NGFS, chaired by Dr Sabine Mauderer from the Deutsche Bundesbank.NGFS REPORT 2 Table of Contents Executive summary 3 1. Introduction 5 2. Climate/sustainability-related disclosure and reporting 6 2.1. Markets for data provision 6 2.2. Alignment of disclosure standards and frameworks 6 2.3. Impact management frameworks 8 3. Integrating climate/sustainability considerations into financial decision-making 10 3.1. ESG scores and ratings 10 3.2. Climate risk integration 10 4. Capital mobilization 13 4.1. I n v est or/bank -led initia tiv es 13 4.2. Developments in sustainable bonds and loans 14 4.3. Developments in ESG indices and exchange traded funds (ETFs) 15 5. Concluding remarks 17 6. References 18 7. Acknowledgements 24NGFS REPORT 3 This brief report presents an overview of the market dynamics for mobilizing sustainable finance. It identifies three main channels through which financial markets can help steer the necessary transformation of the real economy towards higher levels of sustainability: 1 disclosure, risk management, and the mobilization of capital. The report also provides examples of policies, regulations, and guidance addressed to market participants on these three topics. Lastly, it contains a set of key takeaways for further consideration by policymakers and market participants alike. Disclosure: Appropriate sustainability disclosures by financial and non-financial institutions help to identify exposures to climate, environmental and social risks. Market participants are becoming increasingly aware of how sustainability risks and opportunities can impact on the long-term value of assets and are therefore calling for better sustainability disclosures. Various sustainable finance reporting frameworks, standards, and principles have emerged in recent years to meet this demand. However, there is still a need to improve the quality, comparability, and reliability of sustainability disclosures and reporting on the one hand, and to reduce their cost on the other. Leading global standard setters have therefore started to collaborate with a view to establishing a single, coherent, global sustainability disclosure standard, aligned with the TCFD recommendations. 2 Beyond that, sustainability risks also need to be embedded in global accounting frameworks. In light of this, the development of a global set of sustainability reporting standards, as proposed by the IFRS Foundation Trustees, is encouraging. Risk management: Financial institutions are increasingly incorporating climate and sustainability factors into their risk assessment methodologies and decision-making processes. The identification of climate and sustainability risks reinforces the view that these risks are a source of financial risks and facilitates the adequate pricing of assets. This incentivizes long term changes in the strategic orientation of firms and a more efficient allocation of resources. Asset managers, for example, increasingly agree that material sustainability risks are part of their fiduciary duty. Financial institutions, in turn, are incorporating climate and sustainability factors into their decision-making processes. They are building internal sustainability capacities and calling on third parties to provide sustainability ratings and scores. Furthermore, banks and institutional investors have started evaluating physical and transition risks using climate scenario analyses with support from international organizations. Until such capacities are fully developed and become mainstream in financial institutions, the riskiness of polluting assets will not be fully understood or incorporated into risk and valuation processes. To address this gap, private data providers are increasingly offering sustainability data and scores for firms and sovereigns. Moreover, credit rating agencies are beginning to incorporate sustainability risks into their credit ratings and provide specialized sustainability ratings. However, both ESG data/ratings providers and credit rating agencies still lack transparency as to how these risks are fed into their methodologies. Mobilization of capital: Mobilization of capital towards environmentally friendly activities and technologies is supported by disclosure and reporting initiatives, improved risk management practices, increased demand for green assets, and opportunities in the low-carbon space becoming more visible. Evidence that “value investments” do not necessarily carry lower returns and may even deliver additional yields is also supporting demand. More and more investors are seeing sustainability indices perform just as well as conventional indices and sometimes even outperform them. In response, the supply of sustainability indices and ETFs tracking these indices has grown at a brisker pace of late. Market growth in green/sustainable bonds and loans, on the other hand, has been further underpinned by principles and reporting standards. These aim to address investor concerns about greenwashing and facilitate comparability. Although green/sustainable Executive summary 1 For the purposes of this report sustainability is a concept intimately related with climate-related and environmental considerations but that also includes social and governance aspects commonly referred to as ESG. 2 The Task Force on Climate-related Financial Disclosures (TCFD) has developed recommendations applicable to organizations across sectors and jurisdictions for the voluntary disclosure of climate-related financial risks.NGFS REPORT 4 bond and loan markets are still relatively small in size, these instruments can play a transformative role by raising awareness and boosting accountability and transparency. Key takeaways: The market developments presented in this report need to be supported by society, regulators, and international organizations in order to catalyze the transition to a low-carbon/sustainable economy. The report therefore provides key takeaways for further consideration by policymakers and market participants: 1. There is a need for financial authorities to support: (i) global disclosure frameworks and efforts to establish a comprehensive corporate disclosure standard aligned with the TCFD recommendations; and (ii) the development of a global set of sustainability reporting standards. 2. There is a need for multinational financial institutions to adopt and promote global voluntary sustainability standards and disclosure frameworks in the different jurisdictions in which they operate. 3. There is a need for credit as well as ESG rating providers to enhance transparency surrounding their methodologies, disclosing the criteria they use to assess the materiality of climate and sustainability factors, the manner in which these are measured and incorporated into ratings, and the weights they assign to them. 4. There is a need for regulators to require financial institutions to consider material climate and sustainability factors as financial factors. Financially material climate and sustainability factors should be part of the fiduciary duty of asset managers. 5. There is a need for national and multilateral development banks to strengthen their support to mobilize capital towards green investment projects, particularly in developing and emerging markets.NGFS REPORT 5 This report presents an overview of the market dynamics for mobilizing green and sustainable finance. It comes at a time of growing international recognition and action on the risks and opportunities related to climate change and environmental degradation and of heightened demand for green assets. Almost all the top ten economies have committed to net zero emissions by mid-century. This report highlights the main drivers and challenges for such mobilization and scale-up, while providing a set of key takeaways for further consideration by policymakers and market participants. It focuses on analyzing what progress has been made to date on greening key market segments of the financial system – mainly banking, institutional investment, and capital markets. The report identifies three main channels that can impact the real economy. First, consistent, comparable, and reliable climate and environmentally related disclosure and reporting nurture higher levels of awareness among reporting firms, investors, sovereigns and other stakeholders such as employees, consumers, and society at large. Disclosure and reporting initiatives supported by banks, investors and capital markets can shed light on good and bad environmental, social and governance (ESG) practices and incentivize long term changes in firms. Second, forward looking risk assessment methodologies, such as scenario analysis, enable the integration of climate-related risks into financial decision-making, leading to less distorted asset prices and a more efficient allocation of resources. Third, mobilization of capital towards environmentally friendly activities and technologies is supported by disclosure and reporting initiatives, improved risk management practices, increased demand for green assets, and opportunities in the low-carbon space becoming more visible by green taxonomies. The three channels will be covered in each section of the report. The report acknowledges the issues arising from the heterogeneity of green and sustainable finance definitions and the wide variety of ESG approaches taken by many investors and financial institutions. In line with previous NGFS publications, the report specifically addresses market developments regarding climate-related issues, while acknowledging that sustainability developments go beyond climate-related topics. Indeed, some market participants/initiatives specifically address climate-related issues, but many others take a broader sustainability approach. 1. I n tr o duc tionNGFS REPORT 6 Awareness that climate and sustainability factors can materially impact the financial performance of investments has spurred demand for data and disclosure associated with these risks. The private data provider industry is responding to this mounting demand and leveraging new technologies to step up the supply of ESG data and ratings for firms and sovereigns. Voluntary reporting frameworks tailored to different stakeholder needs have also proliferated. Recent efforts to achieve further alignment among frameworks and an emerging consensus among standard setters on the need for a globally accepted framework are promising. 2.1. Markets for data provision As investors and other stakeholders recognize the financial materiality of some ESG factors and the effect that managing sustainability risks can have on the long-term value of assets, there has been an increase in interest for climate-related or ESG disclosures. This uptick in demand for climate and sustainability data has seen a large private market emerge to support investors and financial institutions. According to Environmental Finance (2019), there are some 150 ESG data providers, although the market has been consolidating and is dominated by a handful of players. Products offered include climate data, analytics, advisory services, corporate and country ESG research and scores, alternative data on controversies, ESG portfolio monitoring, second opinions on compliance with bond principles, third-party assurance, certification and verification, and proxy-voting advisory services. According to some estimates (Opimas, 2020), annual spending on ESG data has grown at double-digit rates since 2016 and is expected to reach US$1 billion in 2021. At the same time, multilateral and international organizations are also helping to make more ESG data publicly available. 3 Climate-related and ESG data providers are benefiting from the use of technological innovations. Many collect, analyze and verify environmental data using state-of-the-art digital technologies such as artificial intelligence, distributed ledger technology and natural language processing-based machine learning techniques. Furthermore, data are also collected from remote sensing devices and satellites. These technologies offer investors and corporations additional data and contribute to further transparency but require additional investments and knowhow. An upcoming NGFS report by the workstream Bridging the Data Gaps will analyze the use of new data tools and analytics, to facilitate data collection and make it more transparent. 2.2. Alignment of disclosure standards and frameworks The resulting rise in the availability of climate and sustainability-related data from third-party data providers can incentivize firms and sovereigns to increase their own disclosures, given that it offers them an opportunity to provide their own narrative when engaging investors and other stakeholders. If they did not, investors would assess non-reporting issuers purely on the basis of information provided by third parties. The disclosure of “decision useful” ESG information by firms and other issuers offers many benefits. It is a way to signal to investors and other stakeholders that they are aware of climate and sustainability risks and opportunities and take them seriously. Decision useful disclosures enable financial markets to understand the environmental footprint and trajectory of firms, sovereigns and assets. Investors can then allocate resources accordingly, based on their preferences and risk tolerance. However, in the absence of consistent, comparable and reliable disclosures, it is difficult for financial institutions to make such assessments. 3 For instance, the World Bank recently launched its Sovereign ESG Framework and Sovereign ESG Data Portal (https://datatopics.worldbank.org/esg/). 2. Climate/sustainability-related disclosure and reporting Takeaway 1 There is a need for financial authorities to support: (i) global disclosure frameworks and efforts to establish a comprehensive corporate disclosure standard aligned with the TCFD recommendations; (ii) the development of a global set of sustainability reporting standards. The last few years have seen various green and sustainable finance reporting frameworks, standards, and principles emerge to cater for different stakeholders. These have NGFS REPORT 7 Takeaway 2 There is a need for multinational financial institutions to adopt and promote global voluntary sustainability standards and disclosure frameworks in the different jurisdictions in which they operate. 4 The low level of disclosure of climate and sustainability risks by firms is not confined to the TCFD. 5 In N