The FSB Task force on Climate-related Financial Disclosures (TCFD) will release its final report this week, on Thursday June 29. The report will be presented to the G20 in Italy on July 7-8. While it is uncertain whether the G20 will formally endorse the report given the Trump administration’s stance on climate change, the ripples from the report in transforming how financial markets view and think about climate risk are already being felt, and with or without further formal regulations, we expect investors will continue their call for greater transparency on climate risk and concrete strategies on decarbonization and adaptation. The public consultation conducted this spring showed the draft recommendations were generally well received by corporations and financial institutions alike. An average 75% of respondents found the recommendations useful, but non-financial corporations were unconvinced of the need for scenario planning whereas financial institutions were very supportive. Respondents were unanimous in calling for more detailed guidance and tools for the implementation of the recommendations, and the TCFD has now announced its work was extended through September 2018 to help support the implementation and dissemination of the recommendations.
More information on the TCFD, its recommendations and implications for corporations and investors:
Record-setting temperatures and deadly heat waves have dominated the news these past weeks. Earlier this month came reports of a historic heat wave covering Asia, the Middle East, and Europe with Turbat, Pakistan experiencing record temperatures of 128.3°F (53.5°C), marking it as the hottest temperature ever recorded in May as well as one of Earth’s top-five temperatures on record for any month.
A study released last week found that 30% of Earth’s population is experiencing deadly heat for more than 20 days a year, and unless actions are taken to reduce emissions of greenhouse gases, climate change will result to close to 75% of the population exposed to deadly heat every year. Further proof comes from a new mapping tool released by Climate Impact Lab which takes data from NASA’s climate models to estimate how frequently a country will experience days of 95°F+ temperatures if emissions continue to rise through 2100. NOAA’s Climate Resilience Toolkit contains a wealth of information and tools on how to prepare for heat waves and health impacts of climate change in the U.S., including Four Twenty Seven’s Heat and Social Equity Tool, which combine projections from global climate models with socioeconomic indicators of heat vulnerability to compare the complex components of heat risk and resilience by county in the U.S. We also offer a tool to understand the impacts of extreme heat in India as part of the India Heat Impact Project.
The loss of the United States’ participation in the Paris Agreement is a blow to international climate efforts, though not fatal. In the wake of President Trump’s announcement to withdraw from the agreement, uncertainty has grown in the climate science and adaptation fields. Both domestically and internationally, leaders have reached out to form new coalitions for U.S. states, cities, and businesses to take the lead and continue pursuing what the nation had committed to as a whole. Read our analysis: Trump and Paris: What Impact on Climate?
Investors are increasingly aware of options to invest responsibly, yet the myth persists that ESG investing sacrifices financial returns. At this year’s Sustainatopia conference held in San Francisco, Four Twenty Seven’s Director of Finance Colin Shaw joined a panel aiming to tackle the issue and present new ideas and tools for helping investors. Colin presented on measuring climate risk in financial portfolios, and the need for more climate data in order to better provide guidance to businesses for their risk management planning. Listen to the panel to learn new ways to steer investment towards sustainable solutions.
Meet the Team: Yvonne Burgess
Four Twenty Seven is proud to welcome Yvonne Burgess to our team as Chief Systems Architect. Yvonne has extensive experience in information systems, project management, and software project management. As a Chief Systems Architect, Yvonne is leading the development of our data architecture, modeling and product road-map for a new generation of climate risk analytics products. Yvonne’s experience spans across startups, Fortune 500 corporations, and federal contracting work, blending deep technical expertise with strategic planning and thought leadership. Yvonne holds a Master of Science in Systems Management in organization development and information technology from the University of Southern California, as well as a Bachelor of Business Administration.
Join the Four Twenty Seven team in the field at these upcoming events:
July 26: GARI meeting, New York: Four Twenty Seven CEO Emilie Mazzacurati will join the Global Adaptation and Resilience Investment working group to discuss their forthcoming publication on climate risk in the financial sector.