2019 Climate Report

The science is clear : the Earth is warming at an unprecedented rate and carbon emissions are the main cause. The Paris Agreement’s call for “making finance flows consistent” with a low carbon economy also requires understanding the “climate dynamics” of our investments. This concept - striving to align investments with the “2°C” trajectory that science and the Paris Agreement are calling for - forms the core of the TCFD guidelines.

This report, building on our first two Climate reports, presents our most advanced efforts in this area. It seeks to model both the impact that climate-related risks may have on our investments (what we have termed the “cost of climate”, expressed in financial terms) and conversely the impact that our investments (ie. the businesses and governments we finance) may have on the climate (what we have called here the “warming potential”, expressed in “temperature”).