CDP-綠色金融時(shí)代-CDP金融服務(wù)披露報(bào)告2020（英）-46正式版

DISCLOSUREINSIGHTACTIONTHETIMETOGREENFINANCECDPFinancialServicesDisclosureReport2020WWW.CDP.NETCONTENTS04Key?ndings06Thetimeisnow08Aboutthisreport121.Governance182.Strategy293.Riskmanagement344.Metricandtargets41TCFDoverview42HowCDPcanhelpthe?nancesectorunlockaneweconomy44ConclusionsImportantNoticeThecontentsofthisreportmaybeusedbyanyone,providingacknowledgmentisgiventoCDPWorldwide(CDP).ThisdoesnotrepresentalicensetorepackageorresellanyofthedatareportedtoCDPorthecontributingauthorsandpresentedinthisreport.Ifyouintendtorepackageorresellanyofthecontentsofthisreport,youneedtoobtainexpresspermissionfromCDPbeforedoingso.Norepresentationorwarranty(expressorimplied)isgivenbyCDPastotheaccuracyorcompletenessoftheinformationandopinionscontainedinthisreport.Youshouldnotactupontheinformationcontainedinthispublicationwithoutobtainingspeci?cprofessionaladvice.Totheextentpermittedbylaw,CDPdoesnotacceptorassumeanyliability,responsibilityordutyofcareforanyconsequencesofyouoranyoneelseacting,orrefrainingtoact,inrelianceontheinformationcontainedinthisreportorforanydecisionbasedonit.AllinformationandviewsexpressedhereinbyCDParebasedontheirjudgmentatthetimeofthisreportandaresubjecttochangewithoutnoticeduetoeconomic,political,industryand?rm-speci?cfactors.Guestcommentariesincludedinthisreportreflecttheviewsoftheirrespectiveauthors;theirinclusionisnotanendorsementofthem.CDP,theiraf?liatedmember?rmsorcompanies,ortheirrespectiveshareholders,members,partners,principals,directors,of?cersand/oremployees,mayhaveapositioninthesecuritiesofthecompaniesdiscussedherein.Thesecuritiesofthecompaniesmentionedinthisdocumentmaynotbeeligibleforsaleinsomestatesorcountries,norsuitableforalltypesofinvestors;theirvalueandtheincometheyproducemayfluctuateand/orbeadverselyaffectedbyexchangerates.‘CDPWorldwide’and‘CDP’refertoCDPWorldwide,aregisteredcharitynumber1122330andacompanylimitedbyguarantee,registeredinEnglandnumber05013650.?2020CDPWorldwide.Allrightsreserved2KEYFINDINGS49%1.Almostall?nancialinstitutions’climateimpactandriskisdrivenbytheactivitiesthey?nanceinthewidereconomy,yetthedatasuggeststhatthisisnotyetwherethefocusisforalargenumberofinstitutions.of?nancialinstitutionsindicatetheydonotconductanyanalysisofhowtheirportfolioimpactstheclimateatall.

49%of?nancialinstitutionsindicatetheydonotconductanyanalysisofhowtheirportfolioimpactstheclimateatall.

Only25%ofdisclosing?nancialinstitutionsreporttheir?nancedemissions–84?nancialinstitutionsworthUS$27trillionofassets.

Forthose25%,onaverage,reported?nancedemissionsareover700xlargerthanreportedoperationalemissions.2.Ontopofprovidinggreen?nance,the?nancesectormustbecomegreen.Whiletherearesignsof?nancialinstitutionscommittingtoaligntheirportfolioswithanetzerocarbonworld,muchworkstillneedstobedone.Tocontinuetothrive,?nancialinstitutionswillneedtoaligntheirportfolioswithanetzerocarbonworld.

Theanalysisshowsjusthowkeyportfolioalignmentisfor?nancialinstitutions,thosethathavealow-carbontransitionplanaremostlyalreadytakingactionstoaligntheirportfolio.

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

Tocontinuetothrive,?nancialinstitutionswillneedtoaligntheirportfolioswithanetzerocarbonworld;clearshort-andmid-termmilestonessuchasscience-basedtargetsfortheirportfolioscanhelptheminachievingthis.76%3.Financialinstitutionsde?nitelyseeopportunitiesforreturnson?nancingthetransitiontoalowcarbon,deforestationfree,watersecurefuture–76%seeopportunitiesinofferingsustainable?nanceproductsandservices.of?nancialinstitutionsseeopportunitiesinofferingsustainable?nance

Theyhighlightopportunitiesincludingsustainability-linkedloans,greenandtransitionbonds,sustainableinvestmentfundsandinsurancesolutions–withpotential?nancialimpactuptoUS$2.9trillion

Thereareindicationstheseopportunitiescouldberealized,withpotentialimpactoutweighingthecosttopursueformostopportunities.productsandservices.3KEYFINDINGSContinuedUS$1.054.Disclosuressuggest?nancialinstitutionsareunderestimatingtheirclimate-relatedrisks.trillion

Itismorecommonfor?nancialinstitutionstoidentifyclimate-relatedriskstheyclassifyasoperationalrisks(41%of?nancialinstitutions)thancreditrisks(35%of?nancialinstitutions)andmarketrisks(26%of?nancialinstitutions).potential?nancialimpactbetweencreditrisksandmarketrisks.

Yetthecreditandmarketrisksidenti?edhaveamuchhigherreportedpotential?nancialimpact-uptoUS$1.05trillionbetweencreditrisksandmarketrisks.

Itfollowsthatsomebanks,assetowners,assetmanagersandinsurancecompanieshavenotyetidenti?edrisksintheir?nancingportfolios,whichwillbeofagreatermagnitudethanthoseintheirownoperations.5.Financialinstitutionscancreateafeedbacklooptode-carbonizeandenhanceresilienceoftheeconomyasawhole;engagementwithportfoliocompaniesisakeypartofthis.Itismorecommonforbankstoindicatetheyareengagingwiththeirportfoliosonclimate-relatedissues,comparedtootherindustryactivities.Financialinstitutionscancreateafeedbacklooptode-carbonizeandenhanceresilienceoftheeconomy.

82%ofbanksand67%ofinsurersengagetheirclientsonclimate-relatedissues,mostcommonlytoeducateclientsabouttheirownclimatestrategiesandsustainable?nanceproducts.

46%ofassetownersand50%ofassetmanagersengage,mostcommonlyasactiveowners.

Forsome,thiswillbebecausetheyuseexternalassetmanagers.Ifinvestorsdonothavedirectshareholderrelationships,theyshouldensuretheirexternalassetmanagersareengagingcompanies,sothefeedbackloopisnotbroken.6.Most?nancialinstitutionsnowhavesomeboard-leveloversightofclimate-relatedissues,howevertherearesignsboardscouldsharpentheirfocusonissuesthatreallymatter.Boardsarelesslikelytohaveoversightoftheirclimate

Boardoversightcoversclimaterisksandopportunitiesin?nancialinstitutions’ownoperationsmoreoftenthanitdoestheir?nancingactivities,acrossall?nancialindustries.

Boardsarelesslikelytohaveoversightoftheirclimateimpactthanrisksandopportunitiesaffectingtheirbottomline,againacrossall?nancialindustries.impactthanrisksandopportunitiesaffectingtheirbottomline.4KEYFINDINGSContinued27%

Thesetrendsaremostextremeintheinsuranceindustry-board-leveloversightcoverstheimpactofinsuranceunderwritingonclimatechangeatonly31%ofinsurers.

Useof?nancialincentivescouldalsoimprovetofocusseniorleadersontheissuesthatmatter.only27%ofinsurersarealigningunderwritingportfolioswithawellbelow2degreeworld'7.Whenitcomestoincorporatingclimate-relatedconsiderations,insurancecompaniesarecurrentlymorefocusedontheirinvestmentsthantheunderwritingtheyprovide.

Onmultipletopicsincludingeffectivegovernance,aligningportfoliosfornetzero,engagingwiththerealeconomyandtransactionduediligence,insurancecompaniesperformmuchbetterfortheirinvestmentportfoliosthantheydofortheirunderwritingportfolios.

Theindustryshouldfocusonbothsidesofthebalancesheetasinsuringthelowcarbontransitionwillbeimportant.8.Environmentalimpactof?nancingportfoliosgoesbeyondclimatechange,butcurrentlytheissuesofdeforestationandwatersecurityareassessedbyfewerinstitutionsinmaking?nancialdecisions,comparedtoclimatechange.63%assessexposuretowaterrisksandonly52%assessexposuretodeforestationrisks,comparedto81%

63%assessexposuretowaterrisksandonly52%assessexposuretodeforestationrisks,comparedto81%assessingclimate.

CDPintendstoexpanditsquestionnairestoincludeafullrangeofenvironmentalfactors.For?nancialinstitutions,thismeanscoveringallclimate-andnature-relatedrisks,opportunitiesandimpactsintheirportfolios.assessingclimate.CDPalignmentwiththeTaskforceonClimate-relatedFinancialDisclosures

Financialinstitutionswillbeamongsomeofthe?rstcompaniesrequiredtodiscloseinlinewiththeTCFDframeworkasregulatorsmovetowardsmandatorydisclosure.

CDPwasanearlysupporterandadopteroftheTCFDrecommendationsandthisreportisorganizedintosectionstoaidanassessmentofhowreadytheglobal?nancesectorisforTCFD-alignedreporting.5THETIMEISNOWThetransitiontoanetzeroeconomy–criticalinavoidingthemostcatastrophiceffectsofclimatechange,isdominatingdiscussionsintheworld’smostinfluentialboardroomsandgovernments.ThisisevidentfromBlackrockChairmanLarryFink’srecentletter

toCEOs,andfrompreparationfortheUK’supcomingpresidencyofCOP26.Ratherthandivertingattention,theongoingCOVID-19pandemicisfocusingmindsinbusinessandgovernmentontheneedtomeetglobalsystemicthreatssuchasclimatechange1.Everycompany,ineverysector,hasaparttoplay-suchisthescaleofchangeneeded.However,the?nancesectorisespeciallycritical.Thetransitiontonetzerowillrequirehugeamountsofcapitaldirectedatde-carbonizingtheeconomyandenhancingresiliencetochangesalreadyinthesystem.Itisclearthe?nancesectorneedstoplayamajorroleinthis.Thetimeisnowforthesectortostepup.Whatisrequiredis,yes,green?nance;butalso,for?nancetobecomegreen.Financialinstitutions’largestclimateimpactstemsfromtheactivitiestheyenablethroughtheirloans,investmentsandinsuranceunderwriting.Itisthese?nancingportfoliosthatmustbealignedwith1.5degreesCelsiusworld,for?nancialinstitutionstocontinuetothrive.Withsomuchlong-termcapitalstillbeingdirectedatfossilfuels2,andourtimeandcarbonbudgetrunningout,thesectormustactnow.Financialinstitutionsthatdonotaligntheirportfoliosfaceenormousrisks,includingfromstrandedassets3.

Theimportanceofthe?nancesector’sroleinachievingthelowcarbontransitionisrecognizeddirectlyintheParisAgreement.Itsaimsinclude“making?nance?owsconsistentwithapathwaytowardslowgreenhousegasemissionsandclimate-resilientdevelopment4.”Making?nanceflowsconsistentwithapathwaytowardslowgreenhousegasemissionsandclimate-resilientdevelopment.4TheTaskforceforClimate-relatedFinancialDisclosures(TCFD)alsodirectlyrecognizedhowcriticalthesectoris.Itreleasedguidance

forbanks,assetowners,assetmanagersandinsurancecompanies,alongwithitsrecommendations.

ParisAgreementAsregulatorsmovetowardsmandatoryclimatedisclosuresinlinewiththeTCFDframework,itislikelythat?nancialinstitutionswillbeamongsomeofthe?rstmarketparticipantsrequiredtocomply.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/?les/meetings/paris_nov_2015/application/pdf/paris_agreement_english_.pdf6THETIMEISNOWContinuedtheUK’s“Roadmaptowardsmandatoryclimate-relateddisclosures”,banks,insurancecompaniesandthebiggestpensionschemeswillberequiredtoaligntheirdisclosureswiththeTCFDrecommendationsin2021,aheadofmostlistedcompanies.TheEUSustainableFinanceDisclosureRegulation,settorolloutinseveralstagesoverthenexttwoyears,containsreportingobligationsatboththecompanyandproductlevel,andentailsacomply-or-explainassessmentofthemainnegativeimpactstheirinvestmentswillhaveontheenvironmentandsociety5.Regulationonmandatoryclimatedisclosuresfor?nancialinstitutionswillonlybeacceleratedbytheNetworkforGreeningtheFinancialSystem(NGFS)–agroupofCentralBanksandSupervisorswillingtosharebestpracticeinincorporatingclimateconsiderationsinto?nancialregulation.Anassessmentisneededofhowreadytheglobal?nancesectoristoplaytherolerequiredofit;whetherithasthetoolstomanageclimate-related?nancialrisks,whetheritispositionedtoprovidethecapitalflowsneededforlowcarbontechnologiesandenhancedresilience.Anassessmentisalsourgentlyneededofhowreadytheglobal?nancesectorisforreportinginlinewiththeTCFDrecommendations.CDPisideallypositionedtoprovidethisassessment.TheCDPsystemhasprovidedthemostcomprehensive,comparableandTCFD-alignedenvironmentaldataandinsightstocapitalmarketsforover20years.Itisnowexpandingtoservemoreofthecapitalmarkets;leveragingabroadrangeofassetclassesasauthoritiestorequestenvironmentaldisclosures–suchasthroughthebondmarketsorbanksrequestingdisclosuresfromtheirlendingclients.BeginningwiththeFinancialServicesClimateChangeQuestionnaire2020,CDPasksfordisclosuresfrom?nancialinstitutionsontheimpactsthey?nanceinthewidereconomy.Thedisclosuresallowforabaselineassessmentofclimate-relatedrisks,opportunitiesandimpactsin?nancingportfolios;andofhowbanks,assetowners,assetmanagersandinsurancecompaniesarepreparingforthenetzerocarbontransition.TheCDPsystemhasprovidedthemostcomprehensive,comparableandTCFD-alignedenvironmentaldataandinsightstocapitalmarketsforover20years.Thereisstrongevidencedisclosureleadstoaction.ABanquedeFranceworkingpaper

fromJanuary2021found40%of?nancialinstitutionssubjecttomandatoryclimatereportingreducedfundingoffossilfuelscomparedtoacontrolgroup.5Furtherexamplesofpolicytomandateclimatedisclosuresapplyingto?nancialinstitutionscanbefoundinNewZealand,Switzerland,BrazilandHongKong.7ABOUTTHISREPORTTheCDPFinancialServicesClimateChangeQuestionnaire2020?llsacriticaldatagapinclimatereporting.TheTCFDhighlightedthatthe?nancesectorneedstobeseenasproducersofenvironmentaldata,aswellasusers.Thequestionnairemeetsthisdemand.Forthe?rsttime,CDPisasking?nancialinstitutionstodisclosetheimpactstheyhaveonthewidereconomythroughtheir?nancingportfolios,inadditiontotheiroperationalimpacts.Throughthequestionnaire,CDPaimstobuildastructured,comparabledatasetof?nancialinstitutions’Scope3?nancedemissions.Inamarket?rst,thisreportpresentsinsightsfromtheCDPFinancialServicesClimateChangeQuestionnaire.Itcanthereforebeseenasabaseliningreportonthecurrentstateofthe?nancesector,andwhereitneedstoimprove.Thiswillsupporttheambitiousprivate?nanceagendaforCOP26.CDPallowsforTCFD-alignedreportingandresultsinastructureddatasetofTCFD-aligneddisclosures.ThisreportisorganizedintosectionsbasedontheareasoftheTCFDrecommendations–governance,strategy,riskmanagement,andmetricsandtargets.Organizingthe?ndingsinthiswayaidsanassessmentofhowreadytheglobal?nancesectorisforTCFD-alignedreporting.8ABOUTTHISREPORTContinuedTheinsightspresentedherecoverasigni?cantsectionoftheglobal?nancesector.Theresponseratefor?nancialinstitutionstotheCDPinformationrequestfrominvestorswas

RespondedtoCDP

DidnotrespondtoCDP45%Disclosurescoverthemajorindustryactivitiesmakingupthe?nancesector.Many?nancialinstitutionsundertakemorethanoneactivity.BANKLENDING192INVESTING22560578647612INSURANCEUNDERWRITING129TOTAL332institutions19DisclosurescoverallsixcontinentsUS$109trillionIntotal,?nancialinstitutionsdisclosinghavecombinedassetsofoverUS$109trillion.9ABOUTTHISREPORTContinuedGoingbeyondclimatechangeThe?rstCDPFinancialServicesQuestionnairewasfocusedonclimatechange,reflectedintheinsightspresentedhere.However,thelargestbanks,investorsandinsurersareuniversal,meaningtheyhaveexposuretoeverysectoroftheeconomy.Theconsequenceofthisisthatportfolioscanbeexposedto,andimpacton,environmentalconcernsfarbeyondclimatechange.Socialissuesalsopresentrisksto?nancialinstitutionsastheCOVID-19crisishasshownacutely.Disclosuresfrom?nancialinstitutionstoexploratoryquestionsinthe2020questionnairesuggestthattheissuesofdeforestationandwatersecurityarecurrentlyassessedbyfewer?nancialinstitutionsinmakinglending,investmentandinsuranceunderwritingdecisions,whencomparedtoclimatechange.Doyouassessyourportfolio'sexposuretoenvironmentalrisksandopportunities?100%90%80%70%60%50%40%30%20%10%0%

Climate

Water

ForestsAnyportfolioBanksAssetownersAssetmanagersInsurance10ABOUTTHISREPORTContinuedBESTPRACTICEA-BNPParibasAssetManagementstartedanaturalcapitalassessmentofitsportfolioin2017.Itfocusesitsassessmentonwaterandforests,inadditiontootherissuessuchassoilandbiodiversity.

BNPParibasAssetManagement:hastwokeytargetstoimprovethewaterandforestsfootprintsofitsportfolios.…iscommittedtoimprovethewateref?ciencyofportfolios,inparticularinwater-stressedareas,aswellastomeasureanddisclosethewaterfootprintofitsportfolios.…h(huán)asundertakentoaskcompaniesinitsportfoliostocomplywithNoDeforestation,NoPeatandNoExploitation(NDPE)commitments;by2020foragriculturalcommodities,andby2030fromnon-agriculturalsectors.

CDPintendstoexpanditsquestionnairestoincludeafullrangeofenvironmentalfactorsaswearecommittedtoacceleratingglobalenvironmentalambitionanddrivingaction.Protectingnaturalecosystemsandthebene?tstheyprovideiscrucialforretainingresilience.For?nancialinstitutions,thismeanscoveringallclimate-andnature-relatedrisks,opportunitiesandimpactsdrivenbytheirlending,investmentsandinsuranceunderwriting.Asa?rststeptowardsthatgoal,forests-relatedmetricswerepilotedwithalimitednumberofbanksin2020,withencouragingresults.Similarly,CDPisnowengagingwiththe?nancialsectortoestablishwhichwater-relatedmetricsshouldbeincludedindisclosuresof?nancialinstitutions.Thereisastrongbusinesscaseforwhythe?nancialsectorshouldcareaboutnature–globally,thetotaleconomicvalueofecosystemservicesisestimatedtobebetweenUS$125and140trillionperyear6.In2020,thetotalpotential?nancialimpactofwaterrisksreportedtoCDPwasuptoUS$333billion.Thesenumberspaintacompellingcasefor?nancialinstitutionstoconsidernaturein?nancialdecisions.6/environment/resources/biodiversity/G7-report-Biodiversity-Finance-and-the-Economic-and-Business-Case-for-Action.pdf111GOVERNANCEIsthereboard-leveloversightofclimate-relatedissueswithinyourorganization?Coverageofboard-leveloversightandmanagement-levelresponsibilityAlmostall?nancialinstitutionsreportingtoCDPhavesomeboard-leveloversightofclimate-relatedissues.Oversightismostcommonlymaintainedbyaboard-levelcommittee,at47%of?nancialinstitutions,ortheChiefExecutiveOf?cer(CEO),at39%of?nancialinstitutions.However,itisilluminatingtoinvestigatewhatiscoveredbytheboards’oversight.96%Board-leveloversightcoversclimate-relatedissuesin?nancialinstitutions’ownoperationsmoreoftenthanitcoversthosein?nancingactivities.Thistrendappearsacrossallindustryactivities,butismoststarkforinsurancecompaniesandtheirboards’oversightofinsuranceunderwritingactivities.Thisisconcerningas?nancialinstitutions’majorclimate-relatedrisks,opportunitiesandimpactsoccurintheir?nancingportfolios.Theyshouldbegivenadequatetimeandattentionbyboards;atleastasmuchattentionasoperationalconcernsrelatedtoclimatechange,andideallymore.

Board-leveloversightofclimate-relatedissueswithinyourorganization?

Plantointroduceboard-leveloversightinthenexttwoyears

NoandnoplantodosoFurthermore,board-leveloversightcoverstheclimate-relatedrisksandopportunitiesto?nancialinstitutionsmoreoftenthanitcoverstheclimate-relatedimpactof?nancialinstitutions.Thisisnotunexpected,asboards’primarydutyistoshareholders.Butinfocusingontheimpacton?nancialinstitutionsandnottheimpactof?nancialinstitutions,boardsmaybeneglectingonesideofthe‘doublematerialityapproach’attheheartoftheEUNon-FinancialReportingDirective.A‘doublematerialityapproach’leadstoassessingenvironmentalissuesasmaterialifeithertheycaninfluencethedevelopment,performanceandpositionofthecompanymaterially,orifthecompany’sactivitieshaveamaterialenvironmentalorsocialimpact7.31%Mostextremely,board-leveloversightcoverstheimpactofinsuranceunderwritingonclimatechangeatonly31%ofinsurers.Takentogether,thesetwotrendsmeanthatboard-levelgovernanceat?nancialinstitutionsmostoftencoversclimate-relatedrisksandopportunitiesin?nancialinstitutions’ownoperations;andleastoftencoverstheclimate-relatedimpactof?nancialinstitutions’?nancingportfolios.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.At?nancialinstitutionsreportingtoCDP,managementresponsibilityforclimateissuesismostoftengiventoamanagement-levelsustainabilitycommittee(at40%of?nancialinstitutions),followedbytheCEO,ChiefRiskOf?cer(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-levelresponsibilitycovers?nancialinstitutions’ownoperationsmoreoftenthanitdoestheir?nancingactivities.Again,thetrendismoststarkforinsurancecompanies.Itisencouragingtoseethatclimate-relatedissuesarebeingconsideredinthegovernancestructuresof?nancialinstitutions.However,CDPwouldencourageboardsandseniormanagerstoshifttheirattentionmoretowardstherisksandopportunitiesin?nancingportfolios.Incentivesforthemanagementofclimate-relatedissuesAsmentioned,board-leveloversightandmanagement-levelresponsibilityforclimate-relatedrisksandopportunitiesaffecting?nancialinstitutionsismostoftengiventotheCEO,CROorarangeofotherC-suiteexecutives.Puttinginplaceincentives,especiallymonetaryones,formanagingclimate-relatedissueswellislikelytoimproveoutcomes,asitgivestheexecutivesresponsibleastakeintheoutcomes.For?nancialinstitutions,incentivesshouldworkbestif:A.theyareofferedtothosewithresponsibilityforclimate-relatedissues,and:B.theyareofferedonthebasisofaligning?nancingactivitieswithclimate-relatedgoals.DisclosurestoCDPby?nancialinstitutionssuggestthatonbothcounts?nancialinstitutionsareunder-utilisingincentivesforthemanagementofclimate-relatedissues;andthereiss