DNB Publishes NGFS Guide on Sustainable and Responsible Investment
DNB published a guide, which is prepared by the Network for Greening the Financial System (NGFS), on sustainable and responsible investment for portfolio management of central banks. The guide identifies five strategies for sustainable and responsible investment, with the most prominent strategies being green bond investments and negative screening for equity and corporate bond holdings. The guide builds on the results of a portfolio management survey on sustainable and responsible investment among the NGFS members and concludes with case studies of first-hand experiences by some NGFS members.
The case studies presented in the guide are intended to help build critical momentum and lower barriers for other central banks to follow suit, thus speeding up the transition to a more sustainable economy. According to the survey on sustainable and responsible investment, there is a growing momentum among NGFS members, with 25 out of the 27 respondents either having adopted the sustainable and responsible investment principles in their investment approach or planning to adopt these principles. The principles range from a broad scope of environmental, social, and governance (ESG) considerations to a climate-specific focus. The survey also indicates that most central banks use (40%), or are considering using (36%), a third-party ESG data provider. This guide is part of the NGFS mission to encourage central banks and supervisors across the globe to lead by example and include sustainability considerations in their portfolio management.
In the coming months, the NGFS will continue to work on additional technical documents, including further details on the NGFS transition scenarios and guidelines on scenario-based climate risk analysis, along with a guide on supervision practices. NGFS, which was launched December 12, 2017, is a group of about 46 central banks and supervisors voluntarily willing to share best practices and contribute to the development of environment and climate risk management in the financial sector and to mobilize mainstream finance to support the transition toward a sustainable economy. The NGFS is chaired by Frank Elderson, executive board member of DNB.
Related Links
Keywords: Europe, Netherlands, Banking, Insurance, Securities, Pensions, Guide, Sustainable Finance, ESG, Climate Change Risk, NGFS, DNB
Previous Article
Central Bank of Ireland on Resolving Non-Performing Loans of SMEsRelated Articles
BCBS Amends Guidelines on Sound Management of AML/CFT Risks
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).
EBA Guidelines on Treatment of Structural Foreign Exchange Under CRR
EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).
FSB Issues Statement on Impact of COVID-19 Crisis on Benchmark Reform
FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.
IAIS Publishes List of Internationally Active Insurance Groups
IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.
FED Temporarily Revises FR Y-9C With Respect to PPPLF and CARES Act
FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).
EC Launches Consultation on Review of Solvency II Directive
EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.
ECB Consults on Supervisory Approach to Consolidation in Banking
ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.
PRA Letter Sets Expectations on Approach to Managing Climate Risks
PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.
US Agencies Finalize Amendments to Swap Margin Rule
US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.
IAIS on Package for 2020 Data Collection on ICS and Aggregation Method
IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.
