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The Climate Principles

NEW! DAVOS - January 29, 2010. CEOs of adopting institutions gather to discuss progress, leadership in tackling climate change. Event brochure / Press release / Read the Progress Review

Event Coverage in Financial Times / Reuters

The Climate Group, along with a group of major international financial institutions, launched The Climate Principles in 2008.

Credit Agricole, HSBC, Munich Re, Standard Chartered, Swiss Re and F&C Asset Management have signed on.

Every organization that adopts the Climate Principles is actively managing climate change across the full range of financial products and services, including:  research activities; asset management; retail banking; insurance & re-insurance; corporate banking; investment banking and markets; and project finance.

What the Climate Principles do

Adopting the Climate Principles means making a commitment to:

  1. Minimize operational carbon footprint
  2. Make business decisions that will reduce climate change risks and allow the development of climate-change related opportunities 
  3.  Develop products and services that enable customers to manage climate change related risks and business opportunities 
  4.  Engage with customers, suppliers and wider society to seek opportunities for a low carbon economy 
  5. Support the development of sound energy and climate change policy and 
  6. Disclose progress against these commitments.


 

Frequently Asked Questions about The Climate Principles

Who can adopt the Climate Principles?
Any financial institution can adopt the Climate Principles.  One of the strengths of this initiative is that it offers a broad platform for leading international companies across the financial services industry: retail banks, investment banks, institutional investors, insurance and re-insurance companies.

What are the requirements for adoption?
An adopting institution must either have met or be in the process of implementing the commitments outlined in the Principles.  Adoption of the Climate Principles must be approved by a senior executive of the financial institution.

What checks are in place to make sure the Climate Principles are being implemented?
There is a regular, formal review carried out by an independent third party to check progress of implementation against the Climate Principles.  The check is based on information available in the public domain, for example, the institution's carbon disclosure response and annual sustainability report.  Guidance for information in the public domain that is used to demonstrate implementation of the Climate Principles is available online.

What resources are required to adopt the Climate Principles?
There is an annual fee to cover the costs of administration of the group.  This fee is reviewed on an annual basis.  In addition, each adopting institution may nominate someone to join the Steering Committee of the Climate Principles.


For further information about adopting the Climate Principles please contact Emily Farnworth at The Climate Group at efarnworth@theclimategroup.org.
 

Disclosure Guidance

We are in the process of developing guidance as to how the Climate Principles are being implemented. Currently guides are available for:


Case studies

See how some institutions are already taking action.

  • Find out how Swiss Re is insuring against weather-induced financial losses.
  • Learn about how Standard Chartered is breaking market barriers to investing in energy efficiency.
  • Check out how HSBC Climate Change Index is quantifying the climate change opportunity.
  • Read about how Munich Re have teamed up with the Desertec Foundation to provide electricity from the desert.