EcoAct and Forward Finance : a new collaboration to assess and reduce risks related to…

Paris, may 17, 2017 – The climate change is now increasingly taken into account by the financial sector : 60% to 70% of major institutional investors and asset managers worldwide publish data on their exposure to climate risk. However, less than a quarter of them are concrete actions to décarboner their portfolio of investments. Key driver in the decarbonisation of the economy, the financial sector must operate its transformation, through a strategy of low-carbon, combining responsibility for climate and financial efficiency. In view of this fact, EcoAct and Forward Finance associate to assist investors in their strategy on low-carbon and respond to the new requirements of the law of energy transition.

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The Paris Agreement underlines the key role of the financial sector to contain the rise in global temperatures below 2°C, by making ” the financial flows that are compatible with a profile of the evolution to a development at low emission of greenhouse gas emissions and resilient to climate change “1. The issue is not so much to find new sources of financing and redirect current flows, in supporting companies that are the pioneers of the ecological transition and energy accompanying the transition of the global economy in the direction of a path 2°C.

The financial sector could play a leading role in the decarbonisation of the economy : in effect, investors cannot ignore the risk posed by climate change on the value of financial assets, now estimated at 2,500 billion US $ for a temperature increase of 2.5 °C2. At the international level, 60% of the 500 largest institutional investors (representing the 27,000 billion) and 70 % of the top 50 asset managers in the world, with 43,000 to a billion dollars of assets under management for the account of their clients) now provide information on the potential impact of climate change on their investissements3. The Face of this risk, article 173-VI of the law of energy transition requires institutional investors to measure and communicate the potential impact of climate change on their investment portfolio (climate risk) and the impact of their investments on climate change (carbon footprint of portfolios). It is on this solid base, to build a strategy on low-carbon reconciling climate responsibility and financial efficiency.

To meet these new requirements, EcoAct and Forward Finance are combining their skills to :

Estimate the carbon footprint of investment portfolios ;
Evaluate the risk of climate change and transition related to investment portfolios ;
Design and implement strategies of decarbonization of investment portfolios.

By his in-depth knowledge of the financial sector, Forward complete financial expertise EcoAct in terms of carbon footprint assessment, climate risk, and transition. This partnership aims not only to provide investors with the tools necessary to meet the requirements of section 173-VI of the law of energy transition, but especially to accompany them in the optimisation of the environmental performance of their portfolios, in the framework of a strategy on low-carbon overall.

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