On 4 November 2021 at COP26, Oliver Wyman co-hosted a roundtable with the Climate Group to discuss the key imperatives from Finance Day and the actions banks can take in accelerating progress to net zero in this climate decade. This report summarizes the main takeaways from the discussion.
Roundtable roundup
On finance day at COP26, 450 of the world’s largest financial institutions joined the Glasgow Finance Alliance for Net-Zero (GFANZ) - a $130 trillion dollar fund committed to helping the world economy on its pathway to net zero.
The finance community certainly came to Glasgow with some big numbers, but this roundtable aimed to find out ‘what next?’ - how are banks planning to have real-world impact and fulfil the commitments they make?
The banking sector is in a unique position to influence and support the transition to a low-carbon economy. With these new commitments, banks have shown they want to be part of the solution. We have laid out some of the key challenges shared and the actions required to accelerate real economy impact that will contribute to halving emissions in this decade.
What was discussed?
Chaired by Oliver Wyman's John T. Colas, Partner and Vice Chairman, Financial Services Americas, this roundtable focused on three main questions.
The Task Force on Climate-Related Financial Disclosures (TCFD) developed guidance on metrics, targets, and transition plans reflecting the growing number of net zero commitments that need to be backed by realistic interim targets and credible transition plans. In addition, GFANZ issued a Call to Action, which stated G20 governments should set a target for TCFD-aligned risk management and disclosures, and net zero transition plans by 2024 for public and private enterprises. How can banks leverage disclosures and transition plans?
With many banks now committed to net zero, setting interim targets across sectors within the next 18 months, if not sooner, is critical to achieving this. Are banks successfully developing and delivering against net zero targets?
A recent report published by the World Economic Forum and Oliver Wyman on financing the transition to a net zero future highlighted that a multi-fold increase in private capital flows is needed to deploy, validate, and expand critical breakthrough technologies in the next decade. In parallel, sustainable finance continues to make significant strides in green bonds, ESG-linked notes, and green equity. How are banks mobilising solutions and new product offerings?
Read the full report from The Climate Group x Oliver Wyman below.