The Climate Principles Progress Review 2011
- 26 January 2011
Please note: The Climate Principles program is now managed by its members and an accompanying website is soon to be launched.
The finance and insurance sector is faced with considerable challenges and opportunities in its role as provider of finance and insurance for the low carbon economy. Financial institutions that adopt the Climate Principles have taken on a leadership role in engaging with this issue. With the help of the Principles, they are taking on increasing levels of responsibility for the impact of their operations on climate change, for the operations of their clients, insofar as these have an impact on climate change and that relate to finance and insurance issues, and for engaging with stakeholders regarding climate change.
In an effort to have positive impact, the Climate Principles Financial Institutions (CPFIs) are working to embed an understanding of climate change, and the solutions to it, into their research, asset management, retail banking, insurance and reinsurance, corporate banking, investment banking and markets, and project finance businesses.
By adopting the Climate Principles, the CPFIs find guidance and support for meeting their obligations but also in taking voluntary steps to avoid activities which exacerbate climate change and help respond to the impacts of climate change. This Review shows the progress which CPFIs have made over the last twelve months to fulfil the Climate Principles, compares their progress with the 2010 Review, describes focus areas for action, and illustrates some of the highlights through case studies.
The main body of this Review considers each of the Climate Principles in turn. Annex I gives the methodology which PwC followed to undertake the Review. Annex II sets out the Climate Principles which are relevant to each CPFI. Finally, Annex III gives full results of the Review of the CPFIs.
The major current initiatives of the CPFIs are namely:
- decarbonization of coal-fired power generation; and
- renewable power generation