Paris Agreement Compliance – our consulting service
How to align with the Paris Agreement through our expert advice
The Paris Agreement, adopted at the 21st Conference of the Parties (COP 21) in December 2015, stands as a landmark international accord aimed at addressing the urgent global challenge of climate change.
Signed by 196 countries, it represents a collective commitment to limit the increase in global average temperature to well below 2 degrees Celsius above pre-industrial levels, while pursuinge a more ambitious target of limiting the increase to 1.5 degrees Celsius.
The agreement emphasizes both adaptation and mitigation strategies to build resilience against climate change impacts and reduce greenhouse gas emissions. A key feature is its bottom-up approach, allowing each participating country to set its own nationally determined contributions (NDCs) and regularly report on progress.
This international framework has profound implications for financial institutions, highlighting their pivotal role in achieving climate-related objectives. The agreement calls for financial institutions to contribute to the transition to a low-carbon economy by redirecting investments toward sustainable and climate-resilient projects. This requires integrating environmental, social, and governance (ESG) criteria into investment strategies, risk assessments, and decision-making processes.
The impact of the Paris Agreement on financial institutions extends beyond risk mitigation to opportunities for innovation and growth in green finance. With governments and regulatory bodies increasingly focused on climate-related financial disclosure, financial institutions face mounting pressure to enhance transparency and accountability regarding their exposure to climate risks and the alignment of their portfolios with climate goals. This shift towards sustainable finance represents a transformative journey for the financial industry, aligning it with global efforts to build a resilient and environmentally conscious future.
Discover the benefits
Aligning with the Paris Agreement brings tangible benefits to financial institutions, including:
- Risk mitigation: financial institutions can proactively manage and mitigate risks associated with climate change, such as avoiding exposure to assets that may become stranded due to regulatory changes or physical impacts of climate-related events.
- Innovation: embracing sustainability can drive innovation within financial institutions, leading to the development and offering of new financial products and services that support the transition to a low-carbon economy.
- Enhanced reputation: supporting sustainable and environmentally responsible initiatives aligns with broader societal expectations.
- Regulatory compliance: aligning with the Paris Agreement positions to stay ahead of regulatory changes, financial institutions can reduce the risk of non-compliance and potential legal issues.
- Evolving customer preferences: as consumers become more environmentally conscious, there is a growing demand for sustainable financial products and services.
- Employee engagement: supporting sustainable practices can enhance employee satisfaction and engagement.
How does RINA support?
As a leading consultant company in sustainability and climate risk management, we offer a tailored approach to assist financial institutions in effectively aligning with the Paris Agreement. Our focus is on:
- Methodology development: we tailor methodologies to assist financial institutions in aligning with the Paris Agreement based on the specific institution operations and considering the organization existing practices/policies and climate data availability
- Portfolio alignment evaluation: we assess how well financial institutions' portfolios align with the goals of the Paris Agreement in relation to both climate change and climate mitigation actions
- Target setting: we support financial institutions in establishing targets for aligning with the Paris Agreement, either with a 1.5°C or 2°C target
- Strategy development: we collaborate with financial institutions to develop strategies aimed at achieving their alignment objectives
Why choose RINA for Paris Agreement Services?
Financial institutions benefit from our expertis in developing custom methodologies, conducting portfolio evaluations, and setting ambitious climate targets. Additionally, through years of actively supporting institutions worldwide, we have gained valuable expert insights. By choosing RINA, financial institutions partner with an experienced and established leader in the field of sustainability consulting. We are dedicated to driving meaningful change and ensuring a sustainable and resilient future in line with the Paris Agreement.
