Climate alignment and transition plans for banks

In addition to driving the environmental crisis, climate change poses important risks to the financial system. Misalignment of financial flows with the global climate objectives of limiting global warming to 1.5°C may result in short-, medium- and long-term financial risks for banks individually as well as threaten financial stability overall. The first part of this webinar focusses on how the financial sector can increase its resilience to climate-related impacts. Aligning financial institutions' strategies and actions with the objective of reaching net-zero economies by 2050 can accelerate transition financing, minimise potential negative or disruptive impacts stemming from a disorderly transition, and contribute to maintaining future financial stability. The second part of the webinar focusses on the prudential value of transition plans. Transition plans serve a dual purpose of fostering climate alignment and enhancing climate risk management. As transition plan requirements emerge across jurisdictions with varying scopes and objectives, the panel discussion aims to investigate what constitutes a credible, coherent and operational plan for banks. Agenda: 1. Activating alignment in the context of financial stability by Charlotte Gardes, IMF 2. The role of supervisors as enablers of the climate transition and the value of transition plans by banks by Vivian Yu and Tim Rawlings, NGFS 3. The links between risk management and transition finance: how prudential requirements should help by Anuschka Hilke, I4CE 4. Transition plan requirements landscape by Nuria Fernadez Oms, ECOFACT 5. Panel discussion on prudential transition plans by banks. Moderator: Julie Van Eeckhout, UNEP FI. Panellists: Anuschka Hilke (I4CE), Vivian Yu and Tim Rawlings (NGFS), Charlotte Gardes (IMF) This webinar is the third of a UNEP FI - ECOFACT series on key thematic issues in emerging sustainable finance regulation and banking supervision.