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More recently, we have seen some shift in rhetoric on environmental and social issues by the mainstream financial community. However, the voting records of many fund managers tell a different story. Nearly across the board, the largest fund managers tend to vote in line with management recommendations and generally sup...
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Managing our value chain emissions In FY2018, Scope 3 emissions in our value chain were 596 million tonnes of CO2-e. The most significant contributors to this total were emissions from the downstream processing and use of our products, which accounted for around 97 per cent of total Scope 3 emissions. In particular, Sc...
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Indirect emissions, known as scope 2 and 3 emissions, result from operational activities we do not own or control. These include emissions produced as a consequence of electricity we purchase to power our treatment plants (scope 2) and other indirect emissions such as travel on company business (scope 3). Emissions fro...
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Safety and operational risks Process safety, personal safety, and environmental risks – exposure to a wide range of health, safety, security and environmental risks could cause harm to people, the environment and our assets and result in regulatory action, legal liability, business interruption, increased costs, damage...
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We also anticipate that the potential effects of climate change will increasingly impact our own operations and those of client properties we manage, especially when they are located in coastal cities. For example, in 2018, the impact of natural disasters was significant with a series of devastating wildfires in the U....
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However, while any of these factors may lead to commencement of Engagement, we have decided to particularly focus on companies in relation to which we have particular ESG-related concerns, or which do not publish adequate environmental information, or which are ‘laggards’ with regard to a commitment to address climate ...
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Our Integris Global Equity portfolios exclude companies that have material connections to certain controversial industries, e.g. fossil fuels, tobacco and weapons. We also exclude companies that score the worst overall ESG score (‘CCC’) as calculated by an independent external ESG research company, MSCI ESG Research, a...
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We emit greenhouse gases both directly and indirectly. Our direct (Scope 1) emissions come from our industrial businesses, including the use of natural gas and diesel, and fugitive emissions from coal mining. Our main source of indirect (Scope 2) emissions is electricity used by our operations. We also estimate our Sco...
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We may be impacted by the long term effects of climate change, including: • increased severity or regularity of extreme weather events which may result in business disruptions, changing supply conditions, safety risks for our team members and customers, and damage to our physical assets and transport infrastructure; • ...
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Climate change may also lead to temperature increases, droughts, floods, hurricanes, etc., which may shift access to and alter cycles of different kinds of crops, rendering certain crop fields unusable for agriculture. Merchandise transportation may be affected as well if extreme weather conditions interfere with acces...
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Scope 2 emissions are the main component of our emissions profile. Our Scope 2 emissions, in turn, result primarily from our purchase of grid electricity. We also report Scope 3 emissions derived from air travel undertaken by our colleagues for business purposes. At present, Scope 1 emissions resulting from the use of ...
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8 Climate change Climate change due to global warming could cause various damages, including flooding, landslide disasters caused by abnormal weather conditions such as concentrated torrential rains. Severe heat, heavy snowfall and drought due to unseasonable weather changes, water resources, and loss of biodiversity c...
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EXAMPLES OF RISKS Resource scarcity, coupled with increasing demand, could affect production, availability, quality and cost of raw materials. Increased frequency of extreme weather events, from floods to droughts, could cause disruption in our supply chain and impact the sourcing of raw materials, as well as the produ...
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Global energy demand has continued to be supported by conventional technologies and fossil resources, with energy intensity unable to be significantly reduced. Air pollution is one of the main issues facing large urban centres, but there are no structural changes allowing a substantial reduction in emissions. Many citi...
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Our risk assessment Rising average annual temperatures could lead to higher cooling costs for our business and our customers. More erratic temperature changes could lead to strain or failure of our mechanical heating and cooling systems. Storms could lead to higher maintenance costs. And flooding, both inland and coast...
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Around US$16.5 billion of the insured losses caused by natural disasters related to the Camp Fire forest fire in California. This represents the highest loss to date for the insurance industry caused by a forest fire. In addition to further forest fires, 2018 was also notable for hurricanes, of which hurricane Michael ...
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The Group faces many other risks which, although important and subject to regular review, have been assessed as less significant and are not listed here. These include, for example, natural catastrophe and business interruption risks and certain financial risks. A summary of financial risks and their management is prov...
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STRATEGY RISK Link to KPI/scorecard – business development and growth Risk of lack of balance between short and long-term investments, insufficient diversification of assets, the inability to manage the portfolio or grow the business during significant changes to market and industry conditions including evolving regula...
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Energy policy Throughout FY2018, national energy policy remained highly topical within Australia. As policy makers seek to tackle the energy ‘trilemma’ and solve a decade-long failure to effectively integrate energy and climate policy, ongoing uncertainty prevails in the market. This affects investment decisions, price...
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The potential impact of climate change as an environmental, social and governance challenge for the region is significant. The SADC region is particularly vulnerable to increased frequency of floods, cyclones and droughts which may damage infrastructure, destroy agricultural crops, disrupt livelihoods and cause loss of...
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Low Carbon Fuel Standards Existing and proposed environmental legislation and regulation developed by certain U.S. states, Canadian provinces, the Canadian federal government and members of the European Union, regulating carbon fuel standards could result in increased costs and reduced revenue. The potential regulation...
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Public Perception of Alberta Oil Sands Development of the Alberta oil sands has received considerable attention in recent public commentary on the subjects of environmental impact, climate change and GHG emissions. Despite that much of the focus is on bitumen mining operations and not in situ production, public concern...
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Climate change also threatens our food system which must produce 50% more food to feed over 9 billion people by 2050. However, changing weather patterns and growing seasons threaten suitable cultivation areas around the world. Business can spur positive change and achieving food security could create 80 million jobs an...
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The main impacts of the 4°C scenario were as follows: • Chronic and acute water stress reduces agricultural productivity in some regions, raising prices of raw materials. • Increased frequency of extreme weather (storms and floods) causes increased incidence of disruption to our manufacturing and distribution networks....
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Broadly, the 2 degrees scenario demonstrated that IAG would incur additional operating costs, mainly as a result of the increased cost of carbon or other policy interventions. The 4 degrees scenario also demonstrated that IAG would incur additional operating costs, but in this case, these would more likely arise from i...
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Climate change potentially has multiple effects that could harm the Group’s operations. The increasing scarcity of water resources may negatively affect the Group’s operations in some regions of the world, high sea levels may harm certain coastal activities, and the multiplication of extreme weather events may damage o...
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This structured approach applies to all of the Group’s operated businesses exposed to these risks. In addition to its drilling and pipeline transport operations, the Group has at the end of 2018 195 sites and operating zones exposed to major technological risks, which could cause harm or damage to people, property and ...
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Emission sources not reported This section of the report details the emission sources on which we have not reported and provides the reasons behind our decisions. Only a minority of the offices we operate directly make use of gas and we have included this in our emissions from combustion of fuel. We do not have distinc...
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EMISSIONS AND OTHER ENVIRONMENTAL ISSUES The Panel recognizes that CEMEX has exposure to the risk of increased costs linked to carbon regulations, based on its focus on cement production, which is clearly highly carbon-intensive. Adding to this risk, the Panel asserts that ca. 80% of the company’s assets are located in...
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Company may not be able to offset such impact, including, for example, through higher freight rates. Climate change legislation and regulation could also affect CN's customers; make it difficult for CN's customers to produce products in a cost-competitive manner due to increased energy costs; and increase legal costs r...
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In addition, we recognize the scientific consensus that climate change is a reality of increasing concern, indicated by higher concentrations of greenhouse gases, a warming atmosphere and ocean, diminished snow and ice, and sea level rise. We understand that climate change potentially poses a serious financial threat t...
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The second half of 2017 had unprecedented weather events, particularly in Florida and the Caribbean. Hurricanes Irma and Maria resulted in over 2,500 canceled flights or 3% of departures. Following large weather events, it is common to see lingering demand impact similar to what we experienced in New York, following su...
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Climate change is a long-term risk associated with high uncertainty regarding timing, scope and severity of potential impacts. The risks for insurers can be grouped into physical risks and transition risks. Physical risks relate to losses from climate trends (i.e. changing weather patterns and sea level rise) and clima...
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Limited transportation infrastructure risks The profitability of Equinor’s oil and gas production in a remote area may be affected by an infrastructure constraint Equinor's ability to commercially exploit discovered petroleum resources will depend, among other factors, on infrastructure to transport oil and gas to pote...
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Project STOP was formally kicked-off in July 2017 and publicly announced at the Our Oceans Conference 2017 in Malta. Implementation of the first city partnership project started in April 2018 in Muncar, East Java, Indonesia. Muncar is a major fishing port suffering from plastic litter in its harbour, beaches and rivers...
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The scientific community has concluded that increasing global average temperatures produces significant physical effects, such as the increased frequency and severity of hurricanes, storms, droughts, floods or other extreme climatic events that could interfere with Eni’s operations and damage Eni’s facilities. Extreme ...
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Advisory Services continue to be an important part of our business. We anticipate 528 new assignments in 2019, about the same level as 2018, to support €45 billion in investments. We are committed to dedicating at least 25% of own-lending capacity to climate projects annually, and to increasing from 25% to 35% the shar...
2opportunity
Cities account for 75 per cent of worldwide greenhouse gas (GHG) emissions. EBRD Green Cities, a programme that supports sustainable urban planning and investment, is central to Bank efforts to curb climate change. Under the initiative in 2018, the EBRD invested €265 million in 10 projects which together are expected t...
2opportunity
The EBRD committed US$ 68.5 million (€60 million equivalent) to Amundi Planet – Emerging Green One, a green bond fund dedicated to emerging markets. The International Finance Corporation and the European Investment Bank also participated in the fund, which will invest in bonds issued by financial institutions and suppo...
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The international community pledged €17 million in additional funds to help finance work aimed at reducing the risk of radiation from disused uranium-mining sites in the Kyrgyz Republic, Tajikistan and Uzbekistan. The funding was pledged at an event hosted by the EBRD, which manages the Environmental Remediation Accoun...
2opportunity
At Karnataka, we produced and sold 2.2 million tonnes during FY2018, in line with the allocated environmental clearance (EC) limits. The Honourable Supreme Court has increased the cap on production of iron ore for the state from 30 to 35 million tonnes, and accordingly increase in our allocation for Karnataka from 2.3 ...
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� We have committed to have an additional 3,000 megawatts of new solar and wind — enough to power 750,000 homes — under development or in operation by the beginning of 2022. This is incremental to the nearly 1,800 megawatts of company-owned or -partnered solar generating capacity that had entered service by the end of ...
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We plan on aiding economic development efforts in the Carolinas by keeping electric and gas bills affordable and by working with current and prospective employers to show them how we can provide them with on-demand energy. And through philanthropic giving, which will increase SCANA’s community giving by $1 million per ...
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$200 billion in financing to sustainable businesses and projects by 2030, with more than 50 percent focused on clean technology and renewable energy transactions to help accelerate the transition to a low-carbon economy. This commitment demonstrates how our products and services, operations and culture, and philanthrop...
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To speed up implementation of these solutions, even ahead of calls for tenders, we have established special financing mechanisms. Every year we allocate €2 million to E-Face, a fund that covers the cost differential between conventional solutions and more environmentally friendly alternatives. Similarly, the Seed’Innov...
2opportunity
This new focus is laid out in Eiffage’s 2020 business plan, with the decision to entrust the coordination of transversal innovation to the Sustainable Development department and make internal financial resources available to support the roll-out of the Group’s low-carbon offering. Created in 2016 and allocated an annua...
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The two companies and the relevant local authorities had already created 1,088 car-pooling spaces between 2014 and 2018. They will step up their efforts in this area with a motorway investment plan that was approved by the French government in early November 2018. APRR has undertaken to create 1,700 car-pooling spaces ...
2opportunity
IFC is helping reverse that decline. In 2018, we launched a Maximizing Finance for Development initiative — working with other members of the World Bank Group — to finance a $12 million solar project in Gaza to ease the energy shortage. The 7-megawatt rooftop solar-power plant will provide critical energy to 32 factori...
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Deployed our investment strategy to address climate change through concrete actions with conclusive results • A $10-billion increase in low-carbon assets, exceeding the initial target of $8 billion, with a new target set at $32 billion by 2020. • A 10% reduction in our portfolio’s carbon intensity, with a target of a 2...
2opportunity
BlackRock’s Sustainable Investing platform consists of more than $50 billion in dedicated ESG strategies. We also manage more than $440 billion in solutions that eliminate exposure to certain sectors or activities. And we offer our strategies in index and alpha-seeking, with varying levels of customization, from iShare...
2opportunity
During FY2019, APA expects to commission the 110 MW Darling Downs Solar Farm, the 130 MW Badgingarra Wind Farm and the 17.5 MW Badgingarra Solar Farm. APA continues to evaluate further renewable energy opportunities together with stand-alone and integrated low emission gas generation. This combination of intermittent r...
2opportunity
The British Columbia Carbon Tax Act sets a carbon price of $30 per tonne of CO2e on fuel combustion. Beginning April 1, 2018, the provincial carbon tax is expected to increase by $5 per tonne of CO2e per year, reaching the federal target carbon price of $50 on April 1, 2021. The tax may also be expanded to fugitive and...
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Climate action lines: In 2018, CaixaBank signed an agreement with the European Investment Bank (EIB) consisting of a line of credit amounting to EUR 30 million to fund investments in SMEs, individuals, and the public sector to combat climate change (e.g., electric cars, modifications to facilities, and home improvement...
2opportunity
At Vancity, we are committed to helping our business members improve their environmental performance. One of the ways we do this is through our relationship with Climate Smart. Climate Smart provides training, coaching, and software for businesses to measure their carbon footprint, identify opportunities for cost, ener...
2opportunity
A growing percentage of customers want to reduce their carbon footprint not only in their homes or businesses, but in the vehicles they drive as well. Electric vehicles are a growing consumer choice, and we are taking a three-pronged approach to help our customers seamlessly make the transition. We have several pilots ...
2opportunity
For many investors, climate change poses significant financial challenges and opportunities. The expected transition to a lower carbon economy is estimated to require around £2.7 trillion, on average, in energy sector investments a year for the foreseeable future, generating new investment opportunities. At the same ti...
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Climate Action 100+ VicSuper is collaborating with more than 280 investors, with a combined total of nearly US$30 trillion in assets under management, to engage the world’s largest greenhouse gas-emitting companies to act on climate change. Through the Climate Action 100+ initiative, VicSuper is engaging with investee ...
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2 . As a further decarbonization driver, Eni intends to develop circular economy initiatives aimed at enhancing waste and biomass to extract new energy, new products or materials and to give new life to decommissioned or reclaimed assets. Overall spending in the four-year period 2019-22 for decarbonization, the circula...
2opportunity
2017 (36.01 tonCO 2 eq/kboe). This reduction already makes it possible to achieve the 2021 target, but Eni is nonetheless set on pursuing an improvement of at least 2% per annum in coming years as well. In addition to the upstream results already mentioned, this reduction was also made possible by a reduction in the em...
2opportunity
We have been investing our £200 million corporate ‘green’ loan in ongoing energy security and carbon reduction initiatives such as installing solar panels on our roofs, switching to natural refrigerants and generating green gas using combined heat and power (CHP) plants. We have also partnered with General Electric to ...
2opportunity
Climate change may cause extreme weather events that disrupt operations at one or more of our primary locations, which may negatively affect our ability to service and interact with our clients, and also may adversely affect the value of our investments, including our real estate investments. Climate change may also ha...
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This includes storms, flooding, wildfires and water and heat stress which can damage our buildings, jeopardise the safety of our people and significantly disrupt our operations. At present 9% of our headcount are located in countries at “extreme” risk from the physical impacts of climate change in the next 30 years.
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There is also increased focus, including by governmental and non-governmental organizations, investors, customers and consumers on these and other environmental sustainability matters, including deforestation, land use, climate impact and recyclability or recoverability of packaging, including plastic. Our reputation c...
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8.2.12. As part of its approach to Responsible Investment, the Trustee considers a range of ESG risks, including corporate governance, human rights, bribery and corruption as well as labour and environmental standards. Of the environmental and social issues that we consider, we believe that climate change presents a ma...
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Business as usual, with very limited regulation beyond that existing in 2018. Severe physical climate change impacts build from 2020. This means that consumption increases until 2025 and then starts a gradual but significant decline as systems collapse, supply routes are disrupted and health and safety issues take prec...
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The Group faces many other risks which, although important and subject to regular review, have been assessed as less significant and are not listed here. These include, for example, natural catastrophe and business interruption risks and certain financial risks. A summary of financial risks and their management is prov...
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Megatrend As the world’s population becomes increasingly urbanized, infrastructure development and renewal will be unable to keep up, and major social issues such as housing shortages, traffic paralysis, and air pollution will only worsen. In newly emerging nations, environmental awareness will increase as the economy ...
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Now, these older coal and gas plants are being shuttered in the UK and being replaced by intermittent renewable energy sources, principally wind. This reduces carbon emissions but makes the provision of these system support services more challenging. Wind, by its nature, is intermittent and, for the most part, unable t...
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Banks’ financing choices have a major role to play in promoting carbon reduction. Bank lending and investments make up a significant source of external capital for carbon intensive industries. Every rand invested by South African banks in fossil fuel-related assets increases climate risk, renders it harder to achieve a...
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Thabametsi and Khanyisa. In its 2017 Environmental and social risk report, the Company said that it was “concerned about climate change and the risks it poses for Africa, clients and their businesses,” but argued that developing nations and financial institutions face a dilemma in terms of balancing climate change agai...
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CLIMATE CHANGE Climate change presents immediate and long-term risks to Citi and to its clients and customers, with the risks potentially increasing over time. Climate risk can arise from physical risks (risks related to the physical effects of climate change) and transition risks (risks related to regulatory, legal, t...
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Among the important risks identified in STEP 1, we recognize rising raw material prices due to a decline in the harvest of agricultural materials and increased costs owing to the introduction of a carbon tax, which have a particularly high impact on our businesses. We therefore evaluated this business impact as follows...
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Additional climate variables and related environmental stressors are known to affect production but were assessed more broadly due to data and evidence limitations. These parameters include fire, cyclones, sea level rise, pests and diseases. As a result, our modelling of physical climate risk may understate the potenti...
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Limitations and uncertainties This analysis is based on best available information. However, it is unable to overcome some important limitations and uncertainties. For example, climate change simulations currently have minimal ability to model extreme weather events. Similarly, agricultural impact models need to be fur...
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The Electricity, Gas and Water Supply sectors show a general downward trend. The discontinuation of a number of high emissions intensive exposures contributed to this result in FY18. Our exposure to renewables increased 33% to $3.7 billion in FY18. A portion of the exposure included projects under construction which ar...
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Scope 3 Data Centres Scope 3 Data Centres Greenhouse Gas Emissions (Australia operations) relate to the electricity and diesel Greenhouse Gas Emissions consumption in our Australian data centres not under our operational control as defined under NGER. CBA has (Australia operations) not had operational control of any da...
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Importance Global warming is causing major changes to our environment. Climate change looks to be increasing the frequency and intensity of extreme weather events such as heat waves, droughts, floods and tropical cyclones, damaging critical infrastructure and interrupting the provision of basic services such as food, w...
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Physical damage may arise with more frequency due to extreme weather events. This includes damage to equipment such as turbine blades and transmission infrastructure, as well as access roads, which impact operational performance. Risks also include long-term changes to weather patterns causing material change to an ass...
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High physical risk scenario (typically associated with a greater temperature increase) This is a climate change scenario that results in temperature change of greater than 4°C, resulting in extreme weather events which could threaten the successful operation of assets within the portfolio. We assume that under this sce...
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Finally, prolonged and multiple periods of heatwaves or other consequences of rising temperatures may result in increased mortality and morbidity, thereby impacting our life and income insurance liabilities. Long-term threats are difficult to predict, but at this time, we expect this to have less impact on our life and...
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For NN’s residential mortgage portfolio, we analysed physical risks. Physical risks for mortgages in the Netherlands are mainly related to damage caused to properties by flooding events (including surface water flooding caused by heavy rainfall, river flooding, and coastal flooding). These events could either lead to a...
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Since the Industrial Revolution, an increase in energy consumption has heightened the concentrations of greenhouse gases, such as carbon dioxide (CO2), in the atmosphere, and global warming is progressing. If warming continues without taking any effective countermeasures, there will be major changes in the earth's clim...
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Emission sources not reported This section of the report details the emission sources that we have not reported on and provides the reasons behind our decisions. Only some of the offices we operate directly make use of gas and we have included this in our emissions from combustion of fuel. We do not have distinct data ...
1neutral
F rom an investor’s perspective, climate change entails both physical and transition risks, which have an impact on the value of investments. Physical risks are divided into acute and chronic risks, which refer to the challenges that climate change poses to companies and society, such as unexpected damage caused by ext...
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While we support well-designed carbon pricing, we’re prepared to oppose poorly designed proposals. For example, we opposed the ballot initiative to introduce a carbon fee in Washington State, US in November 2018. We believed that the policy was badly designed and would have harmed Washington’s economy without significa...
1neutral
Laws, regulations, policies, obligations, social attitudes and customer preferences relating to climate change and the transition to a lower carbon economy could have an adverse impact on our business (including increased costs from compliance, litigation, and regulatory or litigation outcomes), and could lead to const...
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Furthermore, similar to upstream PP&E assets discussed above, E&A assets are also potentially exposed to climate change and the global energy transition. A greater number of projects may be expected not to proceed as a consequence of lower forecast future demand, lower appetite by management and the board to allocate c...
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During 2018/19 we were informed of plans to carry out a wholesale review of the permitting for biowaste, which is a future challenge for the business. We also face areas of uncertainty about the storage of biosolids and the potential impacts of the Industrial Emissions Directive. These have the potential to impact us s...
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Physical risks from climate change arise from a number of factors and relate to specific weather events and longer-term shifts in the climate. The nature and timing of extreme weather events are uncertain but they are increasing in frequency and their impact on the economy is predicted to be more acute in the future. T...
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In addition, the impacts of physical and transition climate risks can lead to second order connected risks, which have the potential to affect the Barclays Bank Group’s retail and wholesale portfolios. The impacts of climate change may increase losses for those sectors sensitive to the effects of physical and transitio...
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If the Barclays Bank Group does not adequately embed risks associated with climate change into its risk framework to appropriately measure, manage and disclose the various financial and operational risks it faces as a result of climate change, or fails to adapt its strategy and business model to the changing regulatory...
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Scope 1 emissions come mostly from refrigerant leaks and to a lesser extent from stationary combustion in furnaces. Our Scope 3 emissions result primarily from the production of goods for sale, transportation of products, and waste generated in our operations. We use the GHG Protocol’s Corporate Value Chain methodology...
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Investors are seeking a better understanding of how climate change may impact the company’s business over the short, medium and long term. They also want to know about the company’s planned response, including how it may need to change its strategy. However, according to EY’s July 2020 report ‘How will ESG performance ...
1neutral
Growing concerns over air quality, road safety, sustainability and urban congestion, among consumers and society at large, are driving the regulations and policies for motor vehicles and urban development. These will impact choice of fuel, ownership patterns and will have a signicant impact on the future of the automo...
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Unfortunately, this progress has come at a cost. Carbon emissions have tripled since 1960. We are now consuming about 1.75 times as many natural resources in a year as the planet can possibly regenerate – which is driving land and biodiversity loss, resource shortages and climate change. This is not sustainable, especi...
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Physical risk Physical risks can be acute or chronic. Acute physical risk is caused by extreme weather events such as cyclones and wildfires. Chronic physical risk arises from longer-term shifts in climate patterns such as rising sea levels with time horizon typically spanning decades. Physical risk can result in finan...
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Scope 2 greenhouse gas emissions Indirect emissions resulting from the generation of grid electricity, heat or steam by an outside organisation, such as an electricity provider, but which is utilised by the reporting organisation. Scope 3 greenhouse gas emissions All other indirect emissions which occur at sources the ...
1neutral
The risk of credit loss or non-financial risks, such as reputational damage, arising from environmental, social and governance (ESG) issues, including climate change. While a key component of ESG risk arises indirectly from the financial services we provide to our customers, it can also result directly from our own ope...
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Initial insights The majority of the residential properties in our portfolio have a very low probability of experiencing damage from flooding or drought in the next 30 years. A relatively small number of properties, however, have a high probability of experiencing damage from flooding or drought in that period. Therefo...
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In July 2019, NGO Friends of the Earth Netherlands and its Indonesia and Liberia affiliates notified the Dutch NCP that ING may be in breach of the OECD Guidelines by financing palm oil-related activities. In its initial assessment published January 2020, the NCP did not express an opinion on either the accuracy of the...
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