- EBRD progresses on disclosing financed emissions, carbon footprint of its investments
- In 2023, all EBRD investments were aligned with the Paris Agreement
- Strong advancements made on climate risk stress-testing
The European Bank for Reconstruction and Development (EBRD) has published its fifth annual report based on framework of the Task Force on Climate-Related Financial Disclosures (TCFD), demonstrating its openness, transparency and disclosure in line with international standards.
The latest report presents the results of the Bank’s expanded carbon transition stress-testing exercise, which now covers 75 per cent of the corporate and sub-sovereign investment portfolio, under updated long- and short-term scenarios.
It also discloses the Bank’s own carbon footprint, as well as enhanced and expanded calculations of financed emissions for part of its portfolio.
Every EBRD investment is assessed for climate risk. The screening, assessment and review processes will continue to evolve and improve. With this in mind, the Bank has committed to following International Sustainability Standards Board (ISSB) standards of disclosure by the end of the 2025 financial year, at the latest. This is in line with emerging international best practices, as the TCFD recommendations are being subsumed into the ISSB standards.
Since the beginning of 2023, all EBRD activities have been aligned with the Paris Agreement approach agreed by multilateral development banks (MDBs).
David Coleman, the EBRD’s Vice President and Chief Risk Officer, said: “We are pleased to continue to drive enhancements to climate-related financial disclosure with our stakeholders. As a participant in the global capital market, we recognise the imperative of transparent and reliable climate-related information in facilitating investor decisions. We are committed to continuing to support our clients, particularly those in high-emitting sectors, in their transition to a low-carbon economy.”
Effy Ritter, Head of Climate Risk, added: “The report reaffirms our commitment to openness and adherence to international standards with the aspiration for more capital to be allocated to secure a comprehensive and inclusive transition.”
The TCFD was formed in 2015 to foster reporting on the financial impacts of climate change on organisations and the global response to limit that change. The framework is meant to improve internal risk management and the identification of opportunities, and to provide consistent disclosure of climate-related risk to capital markets and other stakeholders.
The EBRD is a climate finance leader in its regions, helping the economies in which it operates achieve their carbon transition and climate adaptation goals through investment, technical cooperation and policy dialogue. The Bank delivered a record €6.5 billion of green economy finance in 2023.
