Yesterday, the United States Securities and Exchange Commission (SEC) proposed "The Enhancement and Standardization of Climate-Related Disclosures for Investors," a regulatory measure that would require certain climate-related disclosures from companies.

Under the proposed rule, SEC registrants would have to report on climate-related risks that are reasonably likely to have a material impact on their business, results of operations, or financial condition."

Companies would also be required to disclose their GHG emissions. This would include Scope 1 (direct emissions) and Scope 2 (indirect emissions from purchased energy); disclosing on Scope 3 emissions would also be required when material or the company has set a GHG emissions target or goal that includes Scope 3 emissions.

TCFD Chariman Mike Bloomberg, the TNFD, and others have applauded the proposed rule for aligning with TCFD recommendations. Several other jurisdictions worldwide have also already mandated climate reporting or announced moves towards it, including France, the UK, New Zealand, Brazil, Canada, Japan, Mexico and South Africa.

The rule will provide phase-in periods between FY2023-2027, depending on the registrant's filer status; an additional phase-in period will be provided for Scope 3 emissions.

What are your thoughts on the proposed rule?

Press release: https://www.sec.gov/news/press-release/2022-46
Proposed rule: https://www.sec.gov/rules/proposed/2022/33-11042.pdf
Fact sheet: https://www.sec.gov/files/33-11042-fact-sheet.pdf

Making the Most of Gender-Lens Investing

Although investment in gender-diverse organizations, women-owned businesses, and companies catering to women’s preferences has grown substantially in recent years, it is still nowhere close to reaching its full potential. It is being held back by common misconceptions that fly in the face of a mounting body of evidence.

Full disclosure: coming to grips with an inconvenient truth

Some information may be uncomfortable to face up to – but bringing it to light is the first step in making progress.

It is essential that banks share with their stakeholders detailed information on their exposures to C&E – risks. Only then can we all effectively work together to address the consequences of climate change.

ECB slams banks' climate disclosures as 'white noise'

EU banks' climate risk disclosures are "a lot of white noise and no real substance," a leading executive at the European Central Bank (ECB) has said, as its latest analysis revealed no bank satisfies the ECB's basic rules.

Today, the Taskforce for Nature-Related Financial Disclosure (TNFD) released its first beta version of an integrated nature-related risk management & disclosure framework for market consultation.

Nature underpins the global economy. More than half of the world’s economic output – US$44 trillion of economic value generation – is highly or moderately dependent on nature. Yet most corporates, investors and lenders today are inadequately accounting for nature-related risks and opportunities.

Priority areas for further development of the framework include the Climate-nature nexus; Scenarios and timeframes; Scope of disclosures; Approach to materiality; Social dimensions; Defining nature-positive; Data, metrics and targets; and Sector-specific guidance.

Explore the framework & provide feedback via the new interactive TNFD platform.

Can climate finance align with peace and prevent conflict?

▶️ Many fragile contexts are also on the frontlines of the climate crisis.
▶️Conflict can be an obstacle to effective climate finance, impeding or destroying investments in adaptation and mitigation.
▶️ On the flip side, "peace positive" climate finance can reduce competition for natural capital and relieve infrastructure pressure.

❔ Are there any challenges to bridging climate finance and peace and security stakeholders?
❔ How do we ensure this conversation doesn't overshadow the need for developing economies to reduce emissions?

"Climate finance and the peace dividend" by Catherine Wong, Policy Specialist, Climate and Security Risk, UNDP ? ggkp.org/ZZF

What are your thoughts on #ClimateFinanceforPeace?

Gender-responsive sustainable finance recognises that green financing instruments can be used to address gender inequalities. Despite progress, women worldwide have less access to finance and related decision making, and sustainable finance frameworks often fail to integrate gender responsiveness, metrics, and data.

Next Tuesday, 15 March at 3PM CET, join the Green Finance Platform for "Gender-Responsive Sustainable Finance: Towards Inclusive Market Economies." An official Side Event for the 66th Commission on the Status of Women, this webinar will feature inputs from experts at the OECD, IFC, EBRD, GGGI, Climate Investment Funds, and UNDP Finance Sector Hub.

The discussion will focus on practical knowledge, including:

▶️ Measuring gender-responsive financing: Incorporation of gender in investors’ financial analysis (intangible asset) and ESG selection criteria, with focus on metrics and monitoring impact, business case for gender-sensitive green credit lines.

▶️ Encouraging international climate finance mechanisms to use gender-disaggregated data: Gender policy in climate funds and incentives to access those funds.

▶️ Catalysing gender-responsive sustainable finance: Investment incentives that governments may use to address gender equity, including subsidies, grants, tax incentives, blended finance, and procurement incentives.

Learn more and register ? ggkp.org/grf

? If you have any thoughts on this topic or questions you would like us to ask the panelists during the event, please share them in the comments below.

This Wednesday, 9 March at 10AM EDT / 4PM CET, the UAE presidency of the UN Security Council will convene an Arria-formula meeting on "Climate Finance for Sustaining Peace and Security."

International support for implementation of climate linked peacebuilding and risk management has been highly limited. Climate finance for developing countries - the largest multilateral funding source for these efforts - is already significantly below required levels, and access for conflict affected and extremely fragile contexts is even lower.

Yet the value of conflict prevention and climate adaptation continues to grow. The 2018 UN World Bank “Pathways for Peace” report estimated a return of $16 from every $1 invested in conflict prevention efforts, and the Global Commission on Adaptation in 2019 similarly estimated returns on investment in climate adaptation even in non-conflict-affected and fragile areas ranging from $2 - $10 per $1 invested.

Livestream | "Climate Finance for Sustaining Peace and Security": ggkp.org/ZZt
Blog | "Climate finance and the peace dividend": ggkp.org/ZZF

How can central banks and regulators promote financial sustainability?

In a newly published blog post for the #AligningFinancePolicies project, Patricia Moles details actions by Banco de México and Mexico’s Sustainable Finance Committee to raise awareness and build capacity.

This blog provides promising updates on the progress of Mexico's Sustainable Finance Roadmap, launched in 2020.

World spends $1.8tn a year on subsidies that harm environment, study finds.

Are we financing our own extinction?