Annual Report 2023

This year 2023 marks the fourth year of progress reporting. This report shows that surveyed signatories have shown a strong commitment to sustainability by integrating climate concerns into their governance and strategic planning. They are addressing climate risks, setting carbon neutrality goals, and encouraging green practices among suppliers. They have established frameworks to manage environmental and social risks, focusing on climate scenario analysis and biodiversity. In investment, they are tracking green assets, engaging in transition finance, and developing sustainable financial products. Disclosure practices are improving, especially in climate-related information, and signatories are enhancing stakeholder communication to align with global sustainability standards.

Governance and Strategy

Signatories participating in the survey have demonstrated a proactive stance and commitment towards integrating sustainability factors, with a special focus on climate concerns, into their corporate governance frameworks and strategic planning. In addressing climate issues, these signatories have taken varied yet proactive steps. These include incorporating climate-related risks and opportunities into board oversight, making clear pledges to gradually shift away from high-emission projects like coal-fired power plants, setting carbon neutrality goals for their operations and investments, and establishing overall management, engagement, and incentive mechanisms to ensure the achievement of these commitments.

Risk Assessment and Management

Signatories have established a management framework or policy to identify, assess, and manage environmental and social risks and opportunities. This includes conducting thorough assessments on various aspects such as climate change, biodiversity, and supply chain risks. Environmental and social considerations are increasingly becoming essential in decision-making processes, with most institutions now requiring the identification of corresponding risks and the development of solutions or mitigation measures for each identified risk.

In terms of climate scenario analysis and stress testing, the signatories have made notable strides. This progress is evident in their efforts to broaden the scope of analysis across different industries and to create risk management policies based on insights gained from climate risk exposure and stress test outcomes. Additionally, there is a growing emphasis on biodiversity-related factors, such as the protection of biological habitats, water resources, and ecologically sensitive areas, integrating these considerations into project risk assessments. Concurrently, the importance of ESG factors in managing supply chains has also seen an increase among the signatories.

Investment and Corporate Footprint

Signatories are enhancing their mechanisms to track, manage, and incentivize the growth of green assets. They are also pioneering efforts in biodiversity conservation and green supply chain management while actively engaging in transition finance. In the realm of green finance, they have set both qualitative and quantitative targets to increase the proportion of green assets they own or manage, supported by robust tracking mechanisms.

Regarding transition finance, more institutions have defined "carbon-intensive assets" and are now monitoring these assets while implementing measures to guide and encourage entities to lower their carbon emissions. They have integrated transition finance into their strategic planning and corporate governance and are measuring the carbon emissions of their portfolios.

In terms of product innovation, there is a strong interest among signatories in creating sustainable financial products focused on biodiversity conservation and transition finance. However, bonds and loans remain the primary products developed to date.

Disclosure and Engagement

In terms of governance and strategy, risk assessment frameworks, and the management of green assets, signatories generally exhibit a satisfactory level of disclosure, with comprehensive information being provided. There has been an improvement in climate-related disclosure, as an increasing number of signatories are sharing relevant information. However, the level of quantitative disclosure varies across institutions. Moreover, signatories demonstrate a clear understanding of stakeholder needs, continually enhancing their communication and engagement efforts.

In light of increasingly harmonizing global standards for sustainability disclosure and the evolving nature of climate change responses, signatories are encouraged to strengthen their disclosure practices. They should also focus on establishing long-term, stable mechanisms for ongoing communication and meaningful engagement with stakeholders.

2023 GIP Annual Report CN.pdf

2023 GIP Annual Report EN.pdf