The Climate Principles Progress Review

The Climate Principles is the finance industry's landmark response to dealing with the risks and opportunities of climate change.  The Principles provide the first comprehensive framework to help financial institutions manage the major opportunities and risks of climate change.

Crédit Agricole, HSBC, Munich Re, Standard Chartered Bank and Swiss Re and international NGO The Climate Group are all founding members of the Climate Principles, established in late 2008.

One year later, PricewaterhouseCoopers LLP (PwC) has undertaken an independent review of progress made against the Climate Principles by the founding group.

The report finds that the group has made good progress in 2009 towards understanding the risks associated with climate change, although opportunities remain to build upon progress to date.

The insurance sector has been particularly successful in converting this knowledge into new products and services.  Munich Re and Swiss Re both offer products that minimise the financial stress of changing weather patterns and extreme weather events.  Banks are also advancing development of specific climate related funds and indices to make it easier for investors to take advantage of a low carbon economy.

Read the report to see the progress that has been made and the actions these institutions have taken.

Jon Williams, Partner, Sustainability & Climate Change, PwC: "The group has made good progress on implementing the Climate Principles across most aspects of finance. We have seen strong examples of leading practice. 

"However, more can always be done and two areas in particular stand out for focus in 2010 project finance and retail banking. 

"Institutions should aim to improve disclosure on their approaches to financing carbon-intensive projects, and their strategies to align lending portfolios with carbon targets in the countries where they operate.

"Developing products and services for consumers to help them address personal carbon emissions and invest in the low carbon economy is another area of potential opportunity that is currently under-served."