International Platform On Sustainable Finance
InternationalPlatform onSustainableFinanceAnnual ReportOctober 2020#investgreen
High level steeringcommittee representativesMr Valdis DombrovskisExecutive Vice-President ofthe European CommissionThe Hon. Chrystia Freeland,P.C., M.P. Deputy PrimeMinister and Minister ofFinance, CanadaMr Yi GangGovernor of the People’sBank of ChinaDr. C. S. MohapatraAdditional Secretary,Department of Economic Affairs,Ministry of Finance, IndiaHon. Amb. Ukur YataniThe National TreasuryKenyaStatementC lima te ch a n g e i s t h e d efi n i n g ch a l l en g e of o u r t i mes .It is a sy mpto m of a p l a n et , wh i ch i s wa rmi n g a t anunpre ce d e nte d ra te. T h e l o s s of b i od i v ers i t y a n dconseq u e nt d e st ru ct i o n o f ecosy ste ms i s a l rea d y areality. Ou r g l ob a l e nvi ro n me nt i s a t a t i p p i n g p o i ntand the t i me fo r a ct i o n i s n ow.All levers o f h u ma n i n g en u i t y mu st b e h a rn es s ed ,as gov e rn ment s , b u s i n es s e s a n d ci t i zen s wo rk i ntandem to h el p s ecu re t h e t ra n s i t i o n to a l ow- ca rb o n ,enviro n menta l l y s u sta i n a b l e fu t u re.As clima te ch a n g e i s a g l ob a l ch a l l en g e , i ntern a t i o n a lcoope ra t i on i s more n eces s a r y t h a n eve r. Th e s ca l e o fthe cha l l en g e re q u i res a u n i t y of p u rp o s e a mon g al lnations . T h e Covi d - 1 9 p a n d e mi c remi n d s u s of t h es einterde p e n d en ci es a n d of ou r fra g i l e rel a t i on s h i p wi t hnatur e. I n d e ed , recover y from t h e Cov i d - 1 9 p a n d e m i cshoul d fo cu s mi n d s a n d rei n force o u r jo i nt co mmi t mentto a g l o b a l g re en t ra n s i t i on .Private fi n a n ce h a s a vi ta l ro l e to p l a y i n fu n d i n g t hi sgloba l g re en t ra n s i t i o n . I n ch a n n el l i n g s a vi n g s toinvest ment s , fi n a n ci a l ma rket s ca n s et a p p ro p ri ateincent i ves a n d p ri ce ri s k ef fi ci ent l y. We n e ed fi n a n ci a lmarket s to i n co rp o ra te t h e n eed s o f ou r p l a netwhen s ett i n g t h o s e i n cent i v es a n d p ri ci n g ri s k . Webeliev e t h a t fi n a n ci a l i n st i t u t i o n s , wh i ch a re p l a ci n gsustai n a b i l i t y a t t h e ce nt re of t h e i r d e ci s i o n - ma k i ngand pro mo t i n g i n n ov a t i o n to s ol v e envi ro n menta lchallen g e s , wi l l co nt ri b u te to t h e g l o b a l co mmon g oo dwhile i n crea s i n g t h ei r comp et i t i ven es s . Th ere ca n no tbe a b etter ret u rn on i nvest ment t h a n d el i veri n g asustai n a b l e fu t u re.Mr Mohamed BenchaabounThe Inte rn a t i on a l Pl a t fo rm on S u sta i n a b l e F i n a n ce i sat the h ea rt of t h i s g l o b a l res p on s e . S i n ce i t s l a u n c hlast y e a r, memb ers h i p of t h e Pl a t form h a s g rown toj urisdi ct i on s . Col l ect i vel y, we re p res ent a rou n d h a l f o fthe wo rl d ’s econ o my, p o p u l a t i o n a n d CO2 e mi s s i ons .As an o p e n fo ru m o f exch a n g e, t h e Pl a t form wo r ksalong s i d e ot h er i ntern a t i o n a l fo ra to h e l p i t s memb er sto mob i l i s e p ri va te fi n a n ce i n t h e ef fo rt to s a v e t heplanet a n d d el i v er s u sta i n a b l e eco n omi c d ev el o p me ntfor the fu t u re.Mr James ShawWe wi l l cont i n u e to ex p l ore co mmon to ol s to h el p p ri va tef inance p l a y i t s p a rt i n s ecu ri n g a g reen er g l o b a l fu t u r e.Integr a ted ma rket s fo r fu n d i n g s u sta i n a b l e i nvest mentMinister of Economy, Financeand Administration ReformKingdom of MoroccoMinister of Climate ChangeNew Zealand
will b e i n st ru me nta l i n mo b i l i s i n g ca p i ta l a t t h e s ca l eand s p eed re q u i re d to me et o u r Pa ri s Ag reeme ntobj ec t i ves a n d t h e S u sta i n a b l e D ev e l o p ment G oa l s .Mr Jan Tore SannerMinister of FinanceNorwayMr Abdoulaye Daouda DialloMinister of Finance and BudgetSenegalMr Heng Swee KeatDeputy Prime Minister,Coordinating Minister forEconomic Policies and Ministerfor Finance,SingaporeMr Ravi MenonManaging Director,Monetary Authority ofSingaporeMr Ueli MaurerHead of the FederalDepartment of FinanceSwitzerlandMr Martín GuzmánMinister of EconomyArgentinaMr Ignacio Briones RojasMinister of FinanceChileMs Sri Mulyani IndrawatiMinister of FinanceIndonesiaThe work of t h e Pl a t fo rm wi l l b e fu n d a menta l i nprepa ri n g t h e g rou n d for I ntern a t i o n a l S ta n d a rd S etter sin dev el op i n g g l o b a l l y a p p l i ca b l e s u sta i n a b l e fi n a ncestanda rd s . Co rp o ra te d i s cl o s u re s of envi ro n menta lrisks, g re en sta n d a rd s a n d l a b el s a n d ta xo n omi e s o fsustai n a b l e i nvest ment s h a v e a l rea d y b ee n i d ent i fi edas area s fo r work wi t h i n t h e Pl a t fo rm. Th a t wo rk, wh i c his alrea d y u n d er wa y, wi l l s e ek to i d e nt i f y b e st p ra ct i cesand ex p l ore co mmon g rou n d i n o u r a p p roa ch es .The cha l l en g e of g l o b a l cl i ma te ch a n g e i s b o t h i mme ns eand imme d i a te. I nv est ment n ee d s i n t ra n s i t i o n i n g tosustai n a b l e econ o mi c d evel o p ment a re en ormo u s . Wehave n o t i me to l os e. Ou r a mb i t i on a n d o u r co mmi t mentare unwa v eri n g .Th e I PS F i s o p e n to p u b l i c a u t h o ri t i es , wh i c ha re ta k i n g a ct i o n a n d wi l l i n g to p ro mo tei ntern a t i on a l co op e ra t i on i n t h e a reao f env i ro n menta l l y s u sta i n a b l e fi n a n ce.Joi n u s by s en d i n g y ou r a p p l i ca t i o n to t h eI PS F s e creta ri a t ( fi s ma . i ps f@ e c. eu ro p a . eu ) .To geth er, we can m ake adif feren ce!Thi s is a jo int sta te m e nt by t h e h ig h lev e l ste e r in g co m m itteere p re s e nta t iv e s o f t h e IPSF m e m b e r ju r is d ic t io n s , a n d is s e p a r a te fr o mthe An n u a l Re p o r t h e r e a fte r. Fo r ce r ta int y, t h is jo int sta te m e nt is n o ta n e n d o r s e m e nt o f t h e A n n u a l Re p o r t .
The International Platform on Sustainable FinanceTable of ContentsExecutive Summary .61. The International Platform on Sustainable Finance: Towards a reinforced cooperation on sustainable finance, moreneeded than ever to ensure a global green recovery .7a. The economic challenge to reach our sustainability goals requires the full mobilisation of the financial sector .7b. 14 jurisdictions have been joining forces under the International Platform on Sustainable Finance to mobilise privateinvestors for the green transition .9c. Sustainable finance will have a major role to play in the post-pandemic global economic recovery . 112. Sustainable finance: Global trends and evolution in the COVID-19 context .13a. Market trends: from green bonds towards more innovative financial instruments for financing the sustainabletransition . 13b. Regulatory trends: sustainable finance policies and initiatives globally . 16c. The sustainable finance landscape is increasingly shaped by digital innovation in the financial sector . 213. Identifying the adequate SF tools and finding alignment .22a. Taxonomies of sustainable economic activities and financial instruments . 22b. Standards and labels for sustainable financial products and instruments . 28c. Climate and environmental disclosure by companies . 32Conclusion .38Annex I: Joint Statement .39Annex II: IPSF working methods and milestones 2019-2020 .414 Page
The International Platform on Sustainable FinanceDisclaimer on input for and status of the reportThis report is coordinated by the IPSF Secretariat (European Commission), with substantialcontributions received from IPSF members. It reflects the state of the play of the discussions underthe IPSF but not the individual position of IPSF members. The report reflects the collective work of theIPSF members and observers over the year 2020. The results of this report are based on self-reportingby IPSF jurisdictions. The accuracy of the reporting remains the responsibility of the memberjurisdictions.Chapter 2 is based on input by the Climate Bonds Initiative and contributions from IPSF members.Chapter 3 is based on input received to a survey questionnaire circulated to IPSF members,complemented by other information shared by IPSF members and observers. The status ofimplementation of sustainable finance measures is recorded without prejudice to further steps beingtaken in a given policy area.5 Page
The International Platform on Sustainable FinanceExecutive Summary” As for the future, your task is not to foresee it, but to enable it “Antoine de Saint Exupéry, Citadelle, 1948This 2020 Annual Report of the International Platform on Sustainable Finance (IPSF) outlines thecrucial role of sustainable finance in the context of the impact of the COVID-19 pandemic. Thefindings come at an important juncture for policymakers, as authorities continue to address the impactof the COVID-19 pandemic and begin to work towards a global economic recovery based onenvironmentally sustainable, balanced and inclusive growth. Since its launch, the IPSF has grownsignificantly, reaching 14 member jurisdictions, representing around 50% of global greenhouse gasemissions, 50% of world population and almost 50% of global GDP.This report provides an overview of the work done over the previous year. It provides a first analysisof the sustainable finance landscape in global markets, as well as policy trends within and beyond theIPSF membership. It also provides an overview of the main characteristics of sustainable finance toolsin three key areas of focus of the IPSF (taxonomies, standards and labels and disclosure), andunderlines the main commonalities and divergences in IPSF jurisdictions.Working towards convergence on these three areas is essential to scale up sustainable financeglobally as it will enhance global market transparency and help international investors identifyinvestment opportunities that contribute truly to environmental objectives across the globe.The report suggests a number of initial findings: (i) COVID-19 has underlined the critical need forcoordinated actions to finance a more sustainable economy. Sustainable finance has a major role toplay in ‘building back better’ and contributing to a sustainable and resilient recovery. (ii) Markets forproducts that pursue sustainability objectives have grown massively in volume and diversity duringthe last years, but their growth is far from enough to achieve our targets. IPSF member countrieshave taken on a leading role in the field, in particular through the high volumes of green bondissuance. Despite rapid growth, however, green bond issuances must continue to scale up to reach thevolume required to achieve climate and environmental goals. (iii) The development of greentaxonomies within the IPSF membership is nascent, but uptake potential is promising. Many IPSFjurisdictions are considering developing a taxonomy and the potential for comparability in this area issignificant. The IPSF has initiated a working group on taxonomies that will work toward a “CommonGround Taxonomy” highlighting the commonalities between existing taxonomies. This CommonGround Taxonomy will enhance transparency about what is commonly green in member jurisdictionsand contribute to scale up cross-border green investments significantly. (iv) More and morejurisdictions are developing standards and labels for sustainable financial products, with regulationsand guidelines, to provide transparency and clarity and address the risk of greenwashing. The IPSF willkeep monitoring market developments regarding standards and labels and could envisage the creationof a dedicated working group in the near future. (v) In recent years, environmental-related disclosurehas improved considerably and a majority of IPSF members have already set mandatory regulatoryrequirements. Nonetheless, there are still significant gaps notably in the quality and comparability ofinformation disclosed to meet the needs of investors. In this light, most IPSF members with regulatoryregimes are revising them while those with voluntary-based approaches are considering a shift to hardlaw. To ensure that these developments are coordinated and coherent, the IPSF is about to launch aworking group on corporate environmental-related disclosure.The analysis of this report constitutes the basis for further in-depth work, which will also build onfurther progress as IPSF member jurisdictions continue to develop regulatory frameworks to enable thetransition to a sustainable future. For more information about sustainable finance developmentswithin the IPSF membership, see country specific fiches available nationalplatform-sustainable-finance fr6 Page
The International Platform on Sustainable Finance1.The International Platform on Sustainable Finance: Towards a reinforced cooperation onsustainable finance, more needed than ever to ensure a global green recoverya. The economic challenge to reach our sustainability goals requires the full mobilisation of thefinancial sectorClimate change is already a sizable and visible reality. With rising sea levels, drinking watershortages and chronic severe drought, more intense and frequent heatwaves, wildfires, hurricanesand storms, climate change has impacted all the regions around the world and will continue to do soin the future. In parallel, the loss of biodiversity and depletion of natural resources are accelerating.We are collectively approaching a tipping point where all our ecosystems – and the services theyprovide to human activity – might experience severe and potentially irreversible changes. These, inreturn, will have a knock-on effect on people’s health, food security, economic stability orpopulation displacement, and poses a threat to the well-being of future generations. Climatechange, biodiversity loss and environmental degradation are interconnected and collectivelyrepresent among the biggest risks to the world economy of our time - the consequences of whichcan negatively affect socio-economic development, growth and inequalities. These challengesdisproportionately affect the poorest people and regions in the world, creating new sources ofvulnerabilities for countries with little fiscal space.Coordinated and global climate and environment action is required now and on a much greaterscale than in the past. The IPCC Special report on 1.5 C of 2019 has shown that current governmentpledges will only limit global warming to about 3 C above pre-industrial levels by 2100. Thistrajectory will have dangerous and irreversible consequences on the environment and life on Earth,which can only be contained if the Paris Agreement goal of limiting the temperature increase to1.5 C is achieved. The IPCC report therefore called for higher government ambition and anunprecedented transition in all aspects of society to reduce global net anthropogenic CO2 emissionsby about 45% from 2010 levels until 2030 and to reach net zero in around 2050.2 Recentassessments by the Intergovernmental Science-PolicyPlatform on Biodiversity and Ecosystem Services(IPBES) concluded that species extinction rates aretens to hundreds of times higher now than historicalaverages. 75% of the Earth’s land surface has beensignificantly altered by human actions, including forexample the loss of 85% of the area of wetlands. 66%of the ocean area is experiencing multiple impactsfrom people, including from fisheries, pollution, andchemical changes from acidification.Capital markets have a key role to play given themassive investments needed to reach these goals.The Paris Agreement asks Parties to make “financialflows consistent with a pathway towards lowgreenhouse gas emissions” making climate finance one of its core objectives. In 2018, climatefinance reached, for the first time, a total volume of half a trillion dollars, with 56,3% coming from2IPCC, Summary for Policymakers of IPCC Special Report on Global Warming of 1.5 C, 2018.7 Page
The International Platform on Sustainable Financeprivate sources.3 Although this shows that climate finance has constantly progressed over the years,its scale is still insufficient to reach the goals of the Paris Agreement, which according to OECDestimates, will require annual infrastructure investments of USD 6.9tn globally.4Bridging this finance gap, domestically as well as internationally, is beyond the capacity of the publicsector alone. While public funding will continue to play a critical role, a rapid, large-scaletransformation towards a sustainable future can only happen with the full support of private capital.Global financial markets have the potential to bridge this gap by linking green investment demandto global sources of funding, in particular for developing countries. However, scaling up sustainablefinance worldwide is a challenging task, notably due to the absence of coherent definitions of greeninvestments (taxonomies) and the low degree of standardization and transparency. In low-incomecountries, scaling up green investment is further challenged notably limited fiscal space, lowattractiveness for international private funds, and limited functioning of the financial markets.Markets therefore need guidance from public authorities to help them steer capital flows into anenvironmentally sustainable direction. Several jurisdictions around the world have thus started todraw up roadmaps and initiatives to build sustainable finance capacities, integrating for instancerecommendation by the G20 Sustainable Finance Study Group5. By introducing regulatoryframeworks focused on sustainable finance, countries aim to enhance standardisation in this diversearea. For example, China has led the way in developing, aligning and applying green taxonomies fordifferent financial products. Similarly, the EU is finalising the first stage of its taxonomy framework,while an industry-led transition finance taxonomy is in development in Canada. Furthermore, mostIPSF members have in place guidelines or regulations to define standards and labels for sustainablefinance products. Other types of regulatory frameworks on enviro
The International Platform on Sustainable Finance 7 P a g e 1. The International Platform on Sustainable Finance: Towards a reinforced cooperation on sustainable finance, more needed than ever to ensure a global green recovery a. The economic challenge to reach our s
of Managerial Finance page 2 Introduction to Managerial Finance 1 Starbucks—A Taste for Growth page 3 1.1 Finance and Business What Is Finance? 4 Major Areas and Opportunities in Finance 4 Legal Forms of Business Organization 5 Why Study Managerial Finance? Review Questions 9 1.2 The Managerial Finance Function 9 Organization of the Finance
The roles of the finance function in organisations 4. The role of ethics in the role of the finance function Ethics is the system of moral principles that examines the concept of right and wrong. Ethics underpins an organisation’s sustained value creation. The roles that the finance function performs should be carried out in an .File Size: 888KBPage Count: 10Explore furtherRole of the Finance Function in the Financial Management .www.managementstudyguide.c Roles and Responsibilities of a Finance Department in a .www.pharmapproach.comRoles and Responsibilities of a Finance Department .www.smythecpa.comTop 10 – Functions of Business Finance in an Organizationwikifinancepedia.com23 Functions and Duties of Accounting and Finance .accountantnextdoor.comRecommended to you b
International Finance 3 Importance of International Finance International finance plays a critical role in international trade and inter-economy exchange of goods and services. It is important for a number of reasons, the most notable ones are listed here: International finance is an important tool to find the exchange rates, compare
the impact of Sustainable Finance at Standard Chartered, we are presenting our impact on a portfolio basis, covering our USD 9.2bn of Sustainable Finance assets. This year, our Sustainable Finance assets have grown 138% to USD 9.2bn (from USD 3.9bn in 2020) and we expect growth to continue at pace. "We are proud to present the
Finally, finance is good at pricing risk for valuation purposes and can thus help to deal with the inherent uncertainty about environmental issues, such as the impact of carbon emissions on climate change. Finance and sustainability both look to the future. Table 1: A framework for sustainable finance Sustainable finance typology Value created
Social (impact) finance RBC Wealth Management Green finance Resonance Fund Impact finance Bridges Fund Management Socially responsible finance Nutmeg . Source: Author's own research. Despite this variety of definitions, some consistency of terminology has coalesced around the construct of "sustainable finance" in terms of a range of
Descriptif des cours Course Outlines 10 Catalogue des cours/ Course Catalog 2017-2018 FIN: Finance/Finance A : Actuariat/Actuarial, Insurance E : Finance d’entreprise/Corporate Finance The course liste tables and the course outlines G : Finance générale/General Finance M : Finance de marché/Market Finance S : Synthèse/Synthesis IDS: Systèmes d’Information, Sciences de la Décision et .
Abrasive water jet machining (AWJM) process is one of the most recent developed non-traditional machining processes used for machining of composite materials. In AWJM process, machining of work piece material takes place when a high speed water jet mixed with abrasives impinges on it. This process is suitable for heat sensitive materials especially composites because it produces almost no heat .
