Annual Report 2021
GIP signatories grow from 37 in September 2020 to 40 by end-August 2021, which are holding or managing a total asset volume of US $ 49 trillion. It has also seen the ongoing hard work of the GIP community and the Secretariat: 4 capacity building webinars were successfully held, touching upon transition finance, environmental risk assessment, and climate-related financial disclosure practices; the online tools, Climate and Environmental Risk Assessment Toolbox (CERAT) and the Green Project Databases both entered the second development phase, incorporating more functions as per the demand of GIP members; meanwhile, the first GIP regional chapter was officially launched in Central Asia, with support from the World Economic Forum and the Astana International Financial Centre; three thematic reports, respectively on climate disclosures, innovative green financial products, and transition risks, are to be delivered by the end of 2021.
The GIP manages to track the progress of signatories with a comprehensive survey consisting of both quantitative and qualitative questions grouped under four key metrics: governance and strategy, climate and environmental risk assessment capabilities, disclosure and engagement, and investment and corporate footprint. This, the second annual report, shows improvements compared to the performance of the previous year. Signatories are gradually moving towards more advanced stages of the performance spectrum.
● Governance and strategy: signatories have made major progress as increasing numbers of banks are building up structures and procedures for the oversight of climate and environment related issues at board and senior management level, while demonstrating higher levels of climate ambitions with regards to coal divestment and carbon neutrality.
● Climate and Environmental Risk Assessment: signatories have also made progress on risk assessment, and to some extent risk management, with expanding scope of risks assessed, increasing presence of quantitative elements, and more frequent internal communication. Environmental Risk Analysis (ERA) has gained more popularity among members in the forms of scenario analysis and stress testing on the sectoral level.
● Investment and Corporate Footprint: green investments and green fi nancing are picking up pace, while members are becoming increasingly stringent on their fi nancial support for carbonintensive sectors. Near three quarters of signatories have considered the feasibility of at least limiting, halting, or exiting from investments in high emission projects.
● Disclosure and Engagement: Signatories are showing positive signs as the scope of climate-related disclosure continues to expand and deepen, while sustainability issues are increasingly becoming an element of stakeholder engagement.
Download the English version: EN_Annual_Report_2021.pdf