CDP-绿色金融时代-CDP金融服务披露报告2020（英）-46正式版

DISCLOSUREINSIGHTACTIONTHETIMETOGREENFINANCECDPFinancialServicesDisclosureReport2020WWW.CDP.NETCONTENTS04Keyfindings06Thetimeisnow08Aboutthisreport121.Governance182.Strategy293.Riskmanagement344.Metricandtargets41TCFDoverview42HowCDPcanhelpthefinancesectorunlockaneweconomy44ConclusionsImportantNoticeThecontentsofthisreportmaybeusedbyanyone,providingacknowledgmentisgiventoCDPWorldwide(CDP).ThisdoesnotrepresentalicensetorepackageorresellanyofthedatareportedtoCDPorthecontributingauthorsandpresentedinthisreport.Ifyouintendtorepackageorresellanyofthecontentsofthisreport,youneedtoobtainexpresspermissionfromCDPbeforedoingso.Norepresentationorwarranty(expressorimplied)isgivenbyCDPastotheaccuracyorcompletenessoftheinformationandopinionscontainedinthisreport.Youshouldnotactupontheinformationcontainedinthispublicationwithoutobtainingspecificprofessionaladvice.Totheextentpermittedbylaw,CDPdoesnotacceptorassumeanyliability,responsibilityordutyofcareforanyconsequencesofyouoranyoneelseacting,orrefrainingtoact,inrelianceontheinformationcontainedinthisreportorforanydecisionbasedonit.AllinformationandviewsexpressedhereinbyCDParebasedontheirjudgmentatthetimeofthisreportandaresubjecttochangewithoutnoticeduetoeconomic,political,industryandfirm-specificfactors.Guestcommentariesincludedinthisreportreflecttheviewsoftheirrespectiveauthors;theirinclusionisnotanendorsementofthem.CDP,theiraffiliatedmemberfirmsorcompanies,ortheirrespectiveshareholders,members,partners,principals,directors,officersand/oremployees,mayhaveapositioninthesecuritiesofthecompaniesdiscussedherein.Thesecuritiesofthecompaniesmentionedinthisdocumentmaynotbeeligibleforsaleinsomestatesorcountries,norsuitableforalltypesofinvestors;theirvalueandtheincometheyproducemayfluctuateand/orbeadverselyaffectedbyexchangerates.‘CDPWorldwide’and‘CDP’refertoCDPWorldwide,aregisteredcharitynumber1122330andacompanylimitedbyguarantee,registeredinEnglandnumber05013650.©2020CDPWorldwide.Allrightsreserved2KEYFINDINGS49%1.Almostallfinancialinstitutions’climateimpactandriskisdrivenbytheactivitiestheyfinanceinthewidereconomy,yetthedatasuggeststhatthisisnotyetwherethefocusisforalargenumberofinstitutions.offinancialinstitutionsindicatetheydonotconductanyanalysisofhowtheirportfolioimpactstheclimateatall.

49%offinancialinstitutionsindicatetheydonotconductanyanalysisofhowtheirportfolioimpactstheclimateatall.

Only25%ofdisclosingfinancialinstitutionsreporttheirfinancedemissions–84financialinstitutionsworthUS$27trillionofassets.

Forthose25%,onaverage,reportedfinancedemissionsareover700xlargerthanreportedoperationalemissions.2.Ontopofprovidinggreenfinance,thefinancesectormustbecomegreen.Whiletherearesignsoffinancialinstitutionscommittingtoaligntheirportfolioswithanetzerocarbonworld,muchworkstillneedstobedone.Tocontinuetothrive,financialinstitutionswillneedtoaligntheirportfolioswithanetzerocarbonworld.

Theanalysisshowsjusthowkeyportfolioalignmentisforfinancialinstitutions,thosethathavealow-carbontransitionplanaremostlyalreadytakingactionstoaligntheirportfolio.

45%ofbanksaretakingactionstoalignlendingportfolios.48%ofassetownersand46%ofassetmanagersarealigninginvestments.Only27%ofinsurersarealigningunderwritingportfolios,suggestinginsurers’transitionplansarecurrentlyfocusedontheirinvestments.

Tocontinuetothrive,financialinstitutionswillneedtoaligntheirportfolioswithanetzerocarbonworld;clearshort-andmid-termmilestonessuchasscience-basedtargetsfortheirportfolioscanhelptheminachievingthis.76%3.Financialinstitutionsdefinitelyseeopportunitiesforreturnsonfinancingthetransitiontoalowcarbon,deforestationfree,watersecurefuture–76%seeopportunitiesinofferingsustainablefinanceproductsandservices.offinancialinstitutionsseeopportunitiesinofferingsustainablefinance

Theyhighlightopportunitiesincludingsustainability-linkedloans,greenandtransitionbonds,sustainableinvestmentfundsandinsurancesolutions–withpotentialfinancialimpactuptoUS$2.9trillion

Thereareindicationstheseopportunitiescouldberealized,withpotentialimpactoutweighingthecosttopursueformostopportunities.productsandservices.3KEYFINDINGSContinuedUS$1.054.Disclosuressuggestfinancialinstitutionsareunderestimatingtheirclimate-relatedrisks.trillion

Itismorecommonforfinancialinstitutionstoidentifyclimate-relatedriskstheyclassifyasoperationalrisks(41%offinancialinstitutions)thancreditrisks(35%offinancialinstitutions)andmarketrisks(26%offinancialinstitutions).potentialfinancialimpactbetweencreditrisksandmarketrisks.

Yetthecreditandmarketrisksidentifiedhaveamuchhigherreportedpotentialfinancialimpact-uptoUS$1.05trillionbetweencreditrisksandmarketrisks.

Itfollowsthatsomebanks,assetowners,assetmanagersandinsurancecompanieshavenotyetidentifiedrisksintheirfinancingportfolios,whichwillbeofagreatermagnitudethanthoseintheirownoperations.5.Financialinstitutionscancreateafeedbacklooptode-carbonizeandenhanceresilienceoftheeconomyasawhole;engagementwithportfoliocompaniesisakeypartofthis.Itismorecommonforbankstoindicatetheyareengagingwiththeirportfoliosonclimate-relatedissues,comparedtootherindustryactivities.Financialinstitutionscancreateafeedbacklooptode-carbonizeandenhanceresilienceoftheeconomy.

82%ofbanksand67%ofinsurersengagetheirclientsonclimate-relatedissues,mostcommonlytoeducateclientsabouttheirownclimatestrategiesandsustainablefinanceproducts.

46%ofassetownersand50%ofassetmanagersengage,mostcommonlyasactiveowners.

Forsome,thiswillbebecausetheyuseexternalassetmanagers.Ifinvestorsdonothavedirectshareholderrelationships,theyshouldensuretheirexternalassetmanagersareengagingcompanies,sothefeedbackloopisnotbroken.6.Mostfinancialinstitutionsnowhavesomeboard-leveloversightofclimate-relatedissues,howevertherearesignsboardscouldsharpentheirfocusonissuesthatreallymatter.Boardsarelesslikelytohaveoversightoftheirclimate

Boardoversightcoversclimaterisksandopportunitiesinfinancialinstitutions’ownoperationsmoreoftenthanitdoestheirfinancingactivities,acrossallfinancialindustries.

Boardsarelesslikelytohaveoversightoftheirclimateimpactthanrisksandopportunitiesaffectingtheirbottomline,againacrossallfinancialindustries.impactthanrisksandopportunitiesaffectingtheirbottomline.4KEYFINDINGSContinued27%

Thesetrendsaremostextremeintheinsuranceindustry-board-leveloversightcoverstheimpactofinsuranceunderwritingonclimatechangeatonly31%ofinsurers.

Useoffinancialincentivescouldalsoimprovetofocusseniorleadersontheissuesthatmatter.only27%ofinsurersarealigningunderwritingportfolioswithawellbelow2degreeworld'7.Whenitcomestoincorporatingclimate-relatedconsiderations,insurancecompaniesarecurrentlymorefocusedontheirinvestmentsthantheunderwritingtheyprovide.

Onmultipletopicsincludingeffectivegovernance,aligningportfoliosfornetzero,engagingwiththerealeconomyandtransactionduediligence,insurancecompaniesperformmuchbetterfortheirinvestmentportfoliosthantheydofortheirunderwritingportfolios.

Theindustryshouldfocusonbothsidesofthebalancesheetasinsuringthelowcarbontransitionwillbeimportant.8.Environmentalimpactoffinancingportfoliosgoesbeyondclimatechange,butcurrentlytheissuesofdeforestationandwatersecurityareassessedbyfewerinstitutionsinmakingfinancialdecisions,comparedtoclimatechange.63%assessexposuretowaterrisksandonly52%assessexposuretodeforestationrisks,comparedto81%

63%assessexposuretowaterrisksandonly52%assessexposuretodeforestationrisks,comparedto81%assessingclimate.

CDPintendstoexpanditsquestionnairestoincludeafullrangeofenvironmentalfactors.Forfinancialinstitutions,thismeanscoveringallclimate-andnature-relatedrisks,opportunitiesandimpactsintheirportfolios.assessingclimate.CDPalignmentwiththeTaskforceonClimate-relatedFinancialDisclosures

FinancialinstitutionswillbeamongsomeofthefirstcompaniesrequiredtodiscloseinlinewiththeTCFDframeworkasregulatorsmovetowardsmandatorydisclosure.

CDPwasanearlysupporterandadopteroftheTCFDrecommendationsandthisreportisorganizedintosectionstoaidanassessmentofhowreadytheglobalfinancesectorisforTCFD-alignedreporting.5THETIMEISNOWThetransitiontoanetzeroeconomy–criticalinavoidingthemostcatastrophiceffectsofclimatechange,isdominatingdiscussionsintheworld’smostinfluentialboardroomsandgovernments.ThisisevidentfromBlackrockChairmanLarryFink’srecentletter

toCEOs,andfrompreparationfortheUK’supcomingpresidencyofCOP26.Ratherthandivertingattention,theongoingCOVID-19pandemicisfocusingmindsinbusinessandgovernmentontheneedtomeetglobalsystemicthreatssuchasclimatechange1.Everycompany,ineverysector,hasaparttoplay-suchisthescaleofchangeneeded.However,thefinancesectorisespeciallycritical.Thetransitiontonetzerowillrequirehugeamountsofcapitaldirectedatde-carbonizingtheeconomyandenhancingresiliencetochangesalreadyinthesystem.Itisclearthefinancesectorneedstoplayamajorroleinthis.Thetimeisnowforthesectortostepup.Whatisrequiredis,yes,greenfinance;butalso,forfinancetobecomegreen.Financialinstitutions’largestclimateimpactstemsfromtheactivitiestheyenablethroughtheirloans,investmentsandinsuranceunderwriting.Itisthesefinancingportfoliosthatmustbealignedwith1.5degreesCelsiusworld,forfinancialinstitutionstocontinuetothrive.Withsomuchlong-termcapitalstillbeingdirectedatfossilfuels2,andourtimeandcarbonbudgetrunningout,thesectormustactnow.Financialinstitutionsthatdonotaligntheirportfoliosfaceenormousrisks,includingfromstrandedassets3.

Theimportanceofthefinancesector’sroleinachievingthelowcarbontransitionisrecognizeddirectlyintheParisAgreement.Itsaimsinclude“makingfinanceflowsconsistentwithapathwaytowardslowgreenhousegasemissionsandclimate-resilientdevelopment4.”Makingfinanceflowsconsistentwithapathwaytowardslowgreenhousegasemissionsandclimate-resilientdevelopment.4TheTaskforceforClimate-relatedFinancialDisclosures(TCFD)alsodirectlyrecognizedhowcriticalthesectoris.Itreleasedguidance

forbanks,assetowners,assetmanagersandinsurancecompanies,alongwithitsrecommendations.

ParisAgreementAsregulatorsmovetowardsmandatoryclimatedisclosuresinlinewiththeTCFDframework,itislikelythatfinancialinstitutionswillbeamongsomeofthefirstmarketparticipantsrequiredtocomply.In1Forexample,Canadaannouncingbusinesseswillberequiredtomakeclimate-relateddisclosuresinordertoreceiveCovid-19economicaid234/wp-content/uploads/2020/03/Banking_on_Climate_Change__2020_vF.pdf/doi/pdf/10.1080/20430795.2016.1266748?needAccess=true/files/meetings/paris_nov_2015/application/pdf/paris_agreement_english_.pdf6THETIMEISNOWContinuedtheUK’s“Roadmaptowardsmandatoryclimate-relateddisclosures”,banks,insurancecompaniesandthebiggestpensionschemeswillberequiredtoaligntheirdisclosureswiththeTCFDrecommendationsin2021,aheadofmostlistedcompanies.TheEUSustainableFinanceDisclosureRegulation,settorolloutinseveralstagesoverthenexttwoyears,containsreportingobligationsatboththecompanyandproductlevel,andentailsacomply-or-explainassessmentofthemainnegativeimpactstheirinvestmentswillhaveontheenvironmentandsociety5.RegulationonmandatoryclimatedisclosuresforfinancialinstitutionswillonlybeacceleratedbytheNetworkforGreeningtheFinancialSystem(NGFS)–agroupofCentralBanksandSupervisorswillingtosharebestpracticeinincorporatingclimateconsiderationsintofinancialregulation.Anassessmentisneededofhowreadytheglobalfinancesectoristoplaytherolerequiredofit;whetherithasthetoolstomanageclimate-relatedfinancialrisks,whetheritispositionedtoprovidethecapitalflowsneededforlowcarbontechnologiesandenhancedresilience.AnassessmentisalsourgentlyneededofhowreadytheglobalfinancesectorisforreportinginlinewiththeTCFDrecommendations.CDPisideallypositionedtoprovidethisassessment.TheCDPsystemhasprovidedthemostcomprehensive,comparableandTCFD-alignedenvironmentaldataandinsightstocapitalmarketsforover20years.Itisnowexpandingtoservemoreofthecapitalmarkets;leveragingabroadrangeofassetclassesasauthoritiestorequestenvironmentaldisclosures–suchasthroughthebondmarketsorbanksrequestingdisclosuresfromtheirlendingclients.BeginningwiththeFinancialServicesClimateChangeQuestionnaire2020,CDPasksfordisclosuresfromfinancialinstitutionsontheimpactstheyfinanceinthewidereconomy.Thedisclosuresallowforabaselineassessmentofclimate-relatedrisks,opportunitiesandimpactsinfinancingportfolios;andofhowbanks,assetowners,assetmanagersandinsurancecompaniesarepreparingforthenetzerocarbontransition.TheCDPsystemhasprovidedthemostcomprehensive,comparableandTCFD-alignedenvironmentaldataandinsightstocapitalmarketsforover20years.Thereisstrongevidencedisclosureleadstoaction.ABanquedeFranceworkingpaper

fromJanuary2021found40%offinancialinstitutionssubjecttomandatoryclimatereportingreducedfundingoffossilfuelscomparedtoacontrolgroup.5FurtherexamplesofpolicytomandateclimatedisclosuresapplyingtofinancialinstitutionscanbefoundinNewZealand,Switzerland,BrazilandHongKong.7ABOUTTHISREPORTTheCDPFinancialServicesClimateChangeQuestionnaire2020fillsacriticaldatagapinclimatereporting.TheTCFDhighlightedthatthefinancesectorneedstobeseenasproducersofenvironmentaldata,aswellasusers.Thequestionnairemeetsthisdemand.Forthefirsttime,CDPisaskingfinancialinstitutionstodisclosetheimpactstheyhaveonthewidereconomythroughtheirfinancingportfolios,inadditiontotheiroperationalimpacts.Throughthequestionnaire,CDPaimstobuildastructured,comparabledatasetoffinancialinstitutions’Scope3financedemissions.Inamarketfirst,thisreportpresentsinsightsfromtheCDPFinancialServicesClimateChangeQuestionnaire.Itcanthereforebeseenasabaseliningreportonthecurrentstateofthefinancesector,andwhereitneedstoimprove.ThiswillsupporttheambitiousprivatefinanceagendaforCOP26.CDPallowsforTCFD-alignedreportingandresultsinastructureddatasetofTCFD-aligneddisclosures.ThisreportisorganizedintosectionsbasedontheareasoftheTCFDrecommendations–governance,strategy,riskmanagement,andmetricsandtargets.OrganizingthefindingsinthiswayaidsanassessmentofhowreadytheglobalfinancesectorisforTCFD-alignedreporting.8ABOUTTHISREPORTContinuedTheinsightspresentedherecoverasignificantsectionoftheglobalfinancesector.TheresponserateforfinancialinstitutionstotheCDPinformationrequestfrominvestorswas

RespondedtoCDP

DidnotrespondtoCDP45%Disclosurescoverthemajorindustryactivitiesmakingupthefinancesector.Manyfinancialinstitutionsundertakemorethanoneactivity.BANKLENDING192INVESTING22560578647612INSURANCEUNDERWRITING129TOTAL332institutions19DisclosurescoverallsixcontinentsUS$109trillionIntotal,financialinstitutionsdisclosinghavecombinedassetsofoverUS$109trillion.9ABOUTTHISREPORTContinuedGoingbeyondclimatechangeThefirstCDPFinancialServicesQuestionnairewasfocusedonclimatechange,reflectedintheinsightspresentedhere.However,thelargestbanks,investorsandinsurersareuniversal,meaningtheyhaveexposuretoeverysectoroftheeconomy.Theconsequenceofthisisthatportfolioscanbeexposedto,andimpacton,environmentalconcernsfarbeyondclimatechange.SocialissuesalsopresentriskstofinancialinstitutionsastheCOVID-19crisishasshownacutely.Disclosuresfromfinancialinstitutionstoexploratoryquestionsinthe2020questionnairesuggestthattheissuesofdeforestationandwatersecurityarecurrentlyassessedbyfewerfinancialinstitutionsinmakinglending,investmentandinsuranceunderwritingdecisions,whencomparedtoclimatechange.Doyouassessyourportfolio'sexposuretoenvironmentalrisksandopportunities?100%90%80%70%60%50%40%30%20%10%0%

Climate

Water

ForestsAnyportfolioBanksAssetownersAssetmanagersInsurance10ABOUTTHISREPORTContinuedBESTPRACTICEA-BNPParibasAssetManagementstartedanaturalcapitalassessmentofitsportfolioin2017.Itfocusesitsassessmentonwaterandforests,inadditiontootherissuessuchassoilandbiodiversity.

BNPParibasAssetManagement:hastwokeytargetstoimprovethewaterandforestsfootprintsofitsportfolios.…iscommittedtoimprovethewaterefficiencyofportfolios,inparticularinwater-stressedareas,aswellastomeasureanddisclosethewaterfootprintofitsportfolios.…hasundertakentoaskcompaniesinitsportfoliostocomplywithNoDeforestation,NoPeatandNoExploitation(NDPE)commitments;by2020foragriculturalcommodities,andby2030fromnon-agriculturalsectors.

CDPintendstoexpanditsquestionnairestoincludeafullrangeofenvironmentalfactorsaswearecommittedtoacceleratingglobalenvironmentalambitionanddrivingaction.Protectingnaturalecosystemsandthebenefitstheyprovideiscrucialforretainingresilience.Forfinancialinstitutions,thismeanscoveringallclimate-andnature-relatedrisks,opportunitiesandimpactsdrivenbytheirlending,investmentsandinsuranceunderwriting.Asafirststeptowardsthatgoal,forests-relatedmetricswerepilotedwithalimitednumberofbanksin2020,withencouragingresults.Similarly,CDPisnowengagingwiththefinancialsectortoestablishwhichwater-relatedmetricsshouldbeincludedindisclosuresoffinancialinstitutions.Thereisastrongbusinesscaseforwhythefinancialsectorshouldcareaboutnature–globally,thetotaleconomicvalueofecosystemservicesisestimatedtobebetweenUS$125and140trillionperyear6.In2020,thetotalpotentialfinancialimpactofwaterrisksreportedtoCDPwasuptoUS$333billion.Thesenumberspaintacompellingcaseforfinancialinstitutionstoconsidernatureinfinancialdecisions.6/environment/resources/biodiversity/G7-report-Biodiversity-Finance-and-the-Economic-and-Business-Case-for-Action.pdf111GOVERNANCEIsthereboard-leveloversightofclimate-relatedissueswithinyourorganization?Coverageofboard-leveloversightandmanagement-levelresponsibilityAlmostallfinancialinstitutionsreportingtoCDPhavesomeboard-leveloversightofclimate-relatedissues.Oversightismostcommonlymaintainedbyaboard-levelcommittee,at47%offinancialinstitutions,ortheChiefExecutiveOfficer(CEO),at39%offinancialinstitutions.However,itisilluminatingtoinvestigatewhatiscoveredbytheboards’oversight.96%Board-leveloversightcoversclimate-relatedissuesinfinancialinstitutions’ownoperationsmoreoftenthanitcoversthoseinfinancingactivities.Thistrendappearsacrossallindustryactivities,butismoststarkforinsurancecompaniesandtheirboards’oversightofinsuranceunderwritingactivities.Thisisconcerningasfinancialinstitutions’majorclimate-relatedrisks,opportunitiesandimpactsoccurintheirfinancingportfolios.Theyshouldbegivenadequatetimeandattentionbyboards;atleastasmuchattentionasoperationalconcernsrelatedtoclimatechange,andideallymore.

Board-leveloversightofclimate-relatedissueswithinyourorganization?

Plantointroduceboard-leveloversightinthenexttwoyears

NoandnoplantodosoFurthermore,board-leveloversightcoverstheclimate-relatedrisksandopportunitiestofinancialinstitutionsmoreoftenthanitcoverstheclimate-relatedimpactoffinancialinstitutions.Thisisnotunexpected,asboards’primarydutyistoshareholders.Butinfocusingontheimpactonfinancialinstitutionsandnottheimpactoffinancialinstitutions,boardsmaybeneglectingonesideofthe‘doublematerialityapproach’attheheartoftheEUNon-FinancialReportingDirective.A‘doublematerialityapproach’leadstoassessingenvironmentalissuesasmaterialifeithertheycaninfluencethedevelopment,performanceandpositionofthecompanymaterially,orifthecompany’sactivitieshaveamaterialenvironmentalorsocialimpact7.31%Mostextremely,board-leveloversightcoverstheimpactofinsuranceunderwritingonclimatechangeatonly31%ofinsurers.Takentogether,thesetwotrendsmeanthatboard-levelgovernanceatfinancialinstitutionsmostoftencoversclimate-relatedrisksandopportunitiesinfinancialinstitutions’ownoperations;andleastoftencoverstheclimate-relatedimpactoffinancialinstitutions’financingportfolios.Mostextremely,board-leveloversightcoverstheimpactofinsuranceunderwritingonclimatechangeatonly31%ofinsurers.7https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2018.328.01.0082.01.ENG&toc=OJ:L:2018:328:TOC121GOVERNANCEContinuedBankscoverageofboardleveloversightAssetOwnersCoverageofboardleveloversight%ofbanks%ofassetowners80%80%70%70%73%76%69%68%60%50%40%30%20%10%065%60%50%40%30%20%10%059%51%49%Climate-relatedrisksandopportunitiestoourownTheimpactofourownoperationsonopportunitiestoClimate-relatedrisksandTheimpactofourbanklendingactivitiesontheclimateClimate-relatedrisksandopportunitiestoourownTheimpactofourownoperationsonopportunitiestoClimate-relatedrisksandTheimpactofourinvestmentactivitiesontheclimatetheclimateourbanklendingactivitiestheclimateourinvestmentactivitiesoperationsoperationsAssetManagersCoverageofboardleveloversightInsuranceCoverageofboardleveloversight%ofbanks%ofinsurers80%80%70%70%73%60%74%60%50%40%30%20%10%065%61%59%50%40%30%20%10%054%44%31%Climate-relatedrisksandopportunitiestoourownTheimpactofourownoperationsonopportunitiestoClimate-relatedrisksandTheimpactofourinvestingactivitiesontheclimateClimate-relatedrisksandopportunitiestoourownTheimpactofourownoperationsonopportunitiestoClimate-relatedrisksandTheimpactofourinsuranceunderwritingactivitiesontheclimatetheclimateourinvestmentactivitiestheclimateourinsuranceunderwritingactivitiesoperationsoperations131GOVERNANCEContinuedTheTCFDrecommendsthatcompaniesdescribemanagement’sresponsibilitiesinassessingandmanagingclimate-relatedrisksandopportunities,inadditiontotheboard’soversight.AtfinancialinstitutionsreportingtoCDP,managementresponsibilityforclimateissuesismostoftengiventoamanagement-levelsustainabilitycommittee(at40%offinancialinstitutions),followedbytheCEO,ChiefRiskOfficer(CRO)orarangeofotherC-suiteexecutives.BanksCoverageofmanagementlevelresponsibilityAssetOwnersCoverageofmanagementlevelresponsibility%ofbanks%ofassetowners90%80%70%60%50%40%30%20%10%090%89%80%70%60%50%40%30%20%10%084%82%79%55%56%RisksandopportunitiesrelatedtoourownoperationsbanklendingactivitiesRisksandopportunitiesrelatedtoourrelatedtoourotherRisksandopportunitiesRisksandopportunitiesrelatedtoourownoperationsRisksandopportunitiesrelatedtoourrelatedtoourotherinvestingactivitiesRisksandopportunitiesproductsandserviesproductsandserviesAssetManagersCoverageofmanagementlevelresponsibilityInsuranceCoverageofmanagementlevelresponsibility%ofassetsmanagers%ofinsurers90%90%80%80%70%60%50%40%30%20%10%086%85%79%70%60%50%40%30%20%10%064%57%54%RisksandopportunitiesrelatedtoourownoperationsRisksandopportunitiesrelatedtoourrelatedtoourotherinvestingactivitiesRisksandopportunitiesRisksandopportunitiesrelatedtoourownoperationsRisksandopportunitiesrelatedtoinsuranceunderwritingactivitiesRisksandopportunitiesrelatedtoourotherproductsproductsandserviesandservies141GOVERNANCEContinuedAsimilartrendemergesthatmanagement-levelresponsibilitycoversfinancialinstitutions’ownoperationsmoreoftenthanitdoestheirfinancingactivities.Again,thetrendismoststarkforinsurancecompanies.Itisencouragingtoseethatclimate-relatedissuesarebeingconsideredinthegovernancestructuresoffinancialinstitutions.However,CDPwouldencourageboardsandseniormanagerstoshifttheirattentionmoretowardstherisksandopportunitiesinfinancingportfolios.Incentivesforthemanagementofclimate-relatedissuesAsmentioned,board-leveloversightandmanagement-levelresponsibilityforclimate-relatedrisksandopportunitiesaffectingfinancialinstitutionsismostoftengiventotheCEO,CROorarangeofotherC-suiteexecutives.Puttinginplaceincentives,especiallymonetaryones,formanagingclimate-relatedissueswellislikelytoimproveoutcomes,asitgivestheexecutivesresponsibleastakeintheoutcomes.Forfinancialinstitutions,incentivesshouldworkbestif:A.theyareofferedtothosewithresponsibilityforclimate-relatedissues,and:B.theyareofferedonthebasisofaligningfinancingactivitieswithclimate-relatedgoals.DisclosurestoCDPbyfinancialinstitutionssuggestthatonbothcountsfinancialinstitutionsareunder-utilisingincentivesforthemanagementofclimate-relatedissues;andthereiss