Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Environmental Challenges

• Lack of standard definitions of ESG, particularly in the social area
• Insufficient data, especially in emerging markets
• Challenges in engaging with issuers (particularly sovereigns)
• ESG's role in credit ratings is not fully defined
• Limited choice of ESG indices compared to equity markets
• Shortage of ESG-focused fixed income products
• Demand for green bonds outstrips supply

Mitigation Strategies

• Improve breadth and depth of ESG data
• Conduct more rigorous research on the relationship between ESG factors and financial risks and returns in fixed income
• Refine standards, principles, and metrics for applying ESG and impact investing
• Develop more innovative, scalable products to meet the growing demand for fixed income sustainable investments

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Industrial disasters

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Green and social investments

Reporting Standards

Frameworks Used: UN Principles of Responsible Investment (UN PRI), IFC Performance Standards, Global Reporting Initiative (GRI)