Gustavo Bernal Torres
Climate Week NYC, Independent Emissions Data, Flying Blind, and Iceland
Here are 5 ESG insights you might have missed this week:
1. Climate TRACE Releases First Comprehensive, Independent Database of Global Greenhouse Gas Emissions-
Climate TRACE’s innovative approach fills critical knowledge gaps for all countries that rely on the patchwork system of self-reporting that serves as the basis for most existing emissions inventories.
Driven by satellites, remote sensing, and advanced applications of artificial intelligence and machine learning, the inventory is particularly relevant to the more than 100 countries that lack access to comprehensive emissions data from the past five years.
The inventory, which spans the years 2015–2020, reveals striking insights about recent emissions trends across 10 sectors and 38 subsectors of the global economy.
Link to Source: https://medium.com/climate-trace-the-source/climate-trace-releases-first-comprehensive-independent-database-of-global-greenhouse-gas-emissions-718822862862
2. Nationally Determined Contributions (NDCs) Report-
From UNFCCC, Full NDC Synthesis Report: Some Progress, but Still a Big Concern.
The report includes information from all 191 Parties to the Paris Agreement based on their latest NDCs available in the interim NDC registry as at 30 July 2021, including information from 86 updated or new NDCs submitted by 113 Parties. The new or updated NDCs cover about 59% of Parties to the Paris Agreement and account for about 49% of global GHG emissions.
For the group of 113 Parties with new or updated NDCs, greenhouse gas emissions are projected to decrease by 12% in 2030 compared to 2010.
Link to Source: https://unfccc.int/news/full-ndc-synthesis-report-some-progress-but-still-a-big-concern
3. Flying Blind - The Glaring Absence of Climate Risks in Financial Reporting-
Carbon Tracker with the Climate Accounting Project and the PRI have launched a new report.
More than 70% of listed companies that represent some of the world’s largest carbon-polluters, alongside most of their external auditors, are not fully accounting for climate-related risks in financial statements. This is despite significant financial risks faced from the climate crisis and net-zero pledges made by many.
This report examines whether 107 publicly-listed carbon-intensive firms (and their auditors) considered material climate-related risks in financial reporting. At the same time the study also assesses whether investor concerns about Paris-alignment of assumptions and estimates have been addressed.
Link to Source: https://www.unpri.org/accounting-for-climate-change/flying-blind-the-glaring-absence-of-climate-risks-in-financial-reporting/8555.article
4. The First Commercial Carbon Removal Plant Just Opened In Iceland-
“Every ton which is captured from this plant is one that is immediately not contributing to global warming,” says Julie Gosalvez, chief marketing officer at Climeworks, the company that built the new plant, called Orca, which is an expansion of a pilot plant at the same location.
One catch is volume. Orca will capture 4,000 tonnes of carbon dioxide a year, out of around 35bn tonnes produced by burning fossil fuels. Climeworks is “confident” it can reach millions of tonnes before the decade is out.
Another is cost. It costs Orca somewhere between $600-800 to sequester one tonne of carbon dioxide, and the firm sells offset packages online for around $1,200 per tonne. The company thinks it can cut costs ten-fold through economies of scale. But there appears to be no shortage of customers willing to pay the current, elevated price. Even as Orca’s fans revved up, roughly two-thirds of its lifetime offering of carbon removals had already been sold. Clients include corporations seeking to offset a portion of their emissions, such as Microsoft, Swiss Re (and The Economist), as well as over 8,000 private individuals.
Link to Source: https://www.economist.com/science-and-technology/2021/09/18/the-worlds-biggest-carbon-removal-plant-switches-on
5. Global Survey of Climate Risk Management at Financial Firms: Taking the Next Steps-
GARP Risk Institute recently completed its third annual Global Survey of Climate Risk Management at Financial Firms.
The results detailed in this independent, comprehensive report are an eye-opening look at how financial institutions seek to measure and manage both the financial risks and opportunities associated with climate change through the lens of governance, strategy, risk management, metrics, scenario analysis and disclosures.
Among the key takeaways: Use of scenario analysis is increasing and becoming more mainstream. Around 70 percent of firms are using it, with a rising number employing scenarios as a regular part of risk assessment, and with more firms using their main stress testing infrastructure/technology.
Link to Source: https://climate.garp.org/insight/2021-climate-survey/
One more thing: In case you missed the great panels and discussions at this week's Climate Week NYC, we got you covered-
Find the recordings here: https://events.climateaction.org/sustainable-investment-forum-north-america/dashboard/1/day-1/
Do share your comments or the content you think our community should not miss!