All responding entities

Responding entities tracked


Criteria

Responding All responding entities Tracked

Institutions by number

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Institutions that are joining the “Paris race,” by making a commitment to any level of action under any of the three dimensions (Targets, Integration, Flows). Depending on which Criteria is selected, this trend shows the number of institutions or the total assets they represent (USD billion).

How many institutions are joining the “Paris race”, by making a commitment to any level of action under any of the three dimensions. Depending on which is selected, this trend shows the number of institutions or the total assets they represent (USD billion).

The number of private institutions in the UK exhibiting some level of response to climate change has increased rapidly in the last few years, but still falls far short of alignment with Paris Agreement goals.

The dashboard tracks actions by more than 1200 private institutions representing over USD 24 trillion in assets. While this many institutions taking some action on climate change is a positive sign, many institutions have made only a limited response. Achieving climate goals will require significant additional action across the board.

The overall quality and extent of the response across the financial system is best understood by examining the three different dimensions considered: targets, integration, and flows. These show different stages in promoting the goals of the Paris Agreement. Institutions receive composite scores for targets (signals of intent at the strategic level) and integration (tools to embed climate into operations and decision-making). The dashboard also tracks the volume of financial flows to new assets, bond issuances, and the extent to which investments in institutions’ portfolios align (in terms of implied emissions) with a Paris-aligned future.

Trends By Dimension


Criteria

Targets

Distribution

Institutions by number

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Distribution of integration scores for the selected institution category. Gradations in each bar represent different levels of response (ranging 0-100 from “Initial response” to “Advanced response”). The distribution can be based on the number of institutions or their underlying assets (USD billion).

Distribution of targets scores for the selected institution category. Gradations in each bar represent different levels of response (ranging 0-100 from “Initial response” to “Advanced response”). The distribution can be based on the number of institutions or their underlying assets (USD billion).

Reliability

Target drivers

*based on average nr or AUM of reporting entities in the last 5 years

AVERAGE SCORE

Avg by number of institutions

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The green line indicates the average integration score (0-100 from “Initial response” to “Advanced response”) for the selected institution category. The average across institutions can be calculated as simple average of scores or weighted by the assets of covered entities. The dotted line indicates the score of the single institution emerging as the category’s “early leader.”

The green line indicates the average targets score (0-100 from “Initial response” to “Advanced response”) for the selected institution category. The average across institutions can be calculated as simple average of scores or weighted by the assets of covered entities. The dotted line indicates the score of the single institution emerging as the category’s “early leader.”

Reliability

Target drivers

*based on average nr or AUM of reporting entities in the last 5 years

Targets – broadly signalling intention to respond – is the dimension of Paris response where the largest number of private institutions have made progress. Over 800 institutions reported setting targets. The leading score (58/100) shows a strong developed response (by comparison, advanced action is expected to score above 70) . The average score (28/100) is on the cusp of developing beyond an initial response.

Banks score highest overall as a group, followed by endowments and foundations, which showed a flurry of activity in 2020. Trailing groups are venture capital and infrastructure funds. Early leaders among corporates and foundations have the highest scores of any institution type. Some larger institutions (in terms of assets) have shown developed responses among corporates, asset managers and insurance companies, causing average scores to rise when weighted by assets.

Integration

Distribution

Institutions by number

Chart Bar

Distribution of integration scores for the selected institution category. Gradations in each bar represent different levels of response (ranging 0-100 from “Initial response” to “Advanced response”). The distribution can be based on the number of institutions or their underlying assets (USD billion).

Distribution of targets scores for the selected institution category. Gradations in each bar represent different levels of response (ranging 0-100 from “Initial response” to “Advanced response”). The distribution can be based on the number of institutions or their underlying assets (USD billion).

Reliability

Integration drivers

*based on average nr or AUM of reporting entities in the last 5 years

AVERAGE SCORE

Avg by number of institutions

Chart Bar

The green line indicates the average integration score (0-100 from “Initial response” to “Advanced response”) for the selected institution category. The average across institutions can be calculated as simple average of scores or weighted by the assets of covered entities. The dotted line indicates the score of the single institution emerging as the category’s “early leader.”

The green line indicates the average targets score (0-100 from “Initial response” to “Advanced response”) for the selected institution category. The average across institutions can be calculated as simple average of scores or weighted by the assets of covered entities. The dotted line indicates the score of the single institution emerging as the category’s “early leader.”

Reliability

Integration drivers

*based on average nr or AUM of reporting entities in the last 5 years

The integration dimension measures how private institutions embed climate change into their decision-making processes. Most institutions have shown only an initial response. Less than 700 institutions reported integration measures, but on an encouraging note they account for 25% more assets than the larger number of institutions setting targets.

A wide gap between early leaders and the majority affects most institution categories for their progress on integration. The leading score (66/100) is far higher than the average across all institutions (13/100) that shows only initial steps. Infrastructure funds have some of the highest average scores (20 or above) but among the lowest scores for early leaders. The most developed responses are found among a number of pension funds, endowments, insurance companies and asset managers.

Within some institutions, integration measures (e.g. climate risk metrics) may be more developed than targets (e.g. direct mitigation targets), depending on their particular commercial focus.

Flows

INVESTMENT TRENDS

USDm *2019-2020 data is incomplete

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Bars show the volume of transactions in primary low-carbon and climate-resilient investments, and green bond issuances. Figures are always expressed in USD million.

Sources: BNEF, CBI, CPI, NAZCA, RAN

Reliability

Flows drivers

*based on average nr or AUM of reporting entities in the last 5 years

PORTFOLIO ALIGNMENT

Institutions by number

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Distribution of institutions based on the assessment of the share of their investment portfolios exposed to climate-critical sectors as either aligned or misaligned with Paris goals. The distribution can be based on the number of institutions or their underlying assets (USD billion).

Sources: FFD, FinanceMap, TPI

Reliability

Flows drivers

*based on average nr or AUM of reporting entities in the last 5 years

Three types of investment flows are measured at the overview level: primary investments into assets and activities, green bond issuance, and green lending (not shown in charts for lack of institution-level data). Financial flows only show initial steps needed to meet Paris goals, partially because fewer private institutions report on finance flows than on targets or integration.

Although data gaps (including incomplete 2020 data) distort the picture, broad trends are visible. Primary finance provided by UK institutions fell from 2015 to 2018. However, green bond issuance climbed into 2018 and remained high in 2019, while green lending increased into 2019, showing increasingly commercial markets in green debt.

Unlike the other two dimensions, flows aren’t cumulative over years (investments are a one-off while targets or decision-making tools stay in place), so can go down as well as up from year to year.

Portfolio alignment is measured for most institution categories in 2020. This metric indicates how the emissions linked to assets held by institutions in their portfolios are contributing to (or preventing) a sustainable future where temperature rises are limited to below 2˚C.

The volume of assets misaligned with the Paris Agreement is over ten times those that are aligned. Many institutions have work ahead to scale up their investments in green activities and phase out all high-carbon assets.

TRENDS BY INDICATORS


Targets indicators


Awareness of climate change

awareness of climate change

Institutions by number

Chart - How to read

Distribution of institutions that have announced a clear commitment to addressing climate change through their activities, thereby raising awareness for action on climate risks or goals. The distribution can be based on the number of institutions or their underlying assets (USD billion).

Sources: PRI, TPI or activity tracked under other indicators (adoption of mitigation targets, investment and divestment goals, activity to influence actors in the system).

Reliability

Adoption of quantified mitigation targets

Adoption of quantified mitigation targets

Institutions by number

Chart - How to read

Distribution of institutions that have set clear targets for climate action (primarily reducing their emissions), whether those are quantitative targets or general, and whether they are disclosed transparently. The distribution can be based on the number of institutions or their underlying assets (USD billion).

Sources: SBTi, ERI, NAZCA, WMB, TPI, NZAOA, PRB

Reliability

Mitigation targets by type

Institutions by number

Chart - How to read

Distribution of institutions that have set a target, by type of target adopted. The distribution can be based on the number of institutions or their underlying assets (USD billion).

Sources: SBTi, NAZCA

Reliability

Adoption of investment goals

ADOPTION OF INVESTMENT GOALS

Institutions by number

Chart - How to read

Distribution of institutions that have set and disclosed clear, accountable and measurable targets to provide a volume of financial services and investments for climate action. The distribution can be based on the institutions by number or their underlying assets (USD billion).

Sources: WRI

Reliability

AGGREGATE INVESTMENT GOALS

USDm

Chart - How to read

Bars show the cumulative volume of investments that institutions have committed to in goals at the organizational level. Figures are always expressed in USD millions.

Sources: WRI

Reliability

Adoption of divestment goals

Adoption of divestment goals

Institutions by number

Chart - How to read

Distribution of institutions that have announced a clear target to divest from fossil fuels, with a clearly defined scope. The distribution can be based on the number of institutions or their underlying assets (USD billion).

Sources: DivestInvest, FFD

Reliability

Adoption of institutional strategy on climate change

Adoption of institutional strategy on climate change

Institutions by number

Chart - How to read

Distribution of institutions that have set an institution-level strategy to incorporate climate change risks and opportunities, including investment or decarbonization plans. The distribution can be based on the number of institutions or their underlying assets (USD billion).

Sources: PDC, PRI, TPI, CAFI, PRB

Reliability

Influencing actors in the system

Influencing actors in the system

Institutions by number

Chart - How to read

Distribution of institutions that are engaging with government and industry on climate change. The distribution can be based on the number of institutions or their underlying assets (USD billion).

Sources: InfluenceMap, World Economic Forum / Mission Possible, BEI, IA, SAS, PSI, PRI, NZAOA, WMB, TPI

Reliability

Integration indicators


Disclosure of climate risks

Disclosure of climate risks

Institutions by number

Chart - How to read

Distribution of institutions that have committed to the disclosure of climate risks and, if so, whether the level of disclosure has been assessed and can be considered sufficient. The distribution can be based on the number of institutions or their underlying assets (USD billion).

Sources: AODP, PRI, TCFD, CA 100+, WMB

Reliability

Emissions reporting

Emissions reporting

Institutions by number

Chart - How to read

Distribution of institutions that have committed to disclose their emissions, and whether there is evidence that emissions are already been tracked internally. Emissions that are verified or cover the full range of activities (scope 1, 2, and 3) are here considered of higher quality. The distribution can be based on the number of institutions or their underlying assets (USD billion).

Sources: TPI, PCAF, PRI

Reliability

Climate progress reporting

Climate progress reporting

Institutions by number

Chart - How to read

Distribution of institutions that are committing to provide, or providing regular updates on measures implemented, and actions taken.

Distribution can be based alternatively on the number of institutions or their underlying assets (USDbn).

Sources: SSEI, CAFI, PSI, WRI, PRB, NZAOA, WMB, PRI

Reliability

Carbon price

CARBON PRICE

Institutions by number

Chart - How to read

Distribution of institutions that have committed to an internal carbon price to inform their decision making, have already adopted one, or transparently disclosed one to the public. The distribution can be based on the number of institutions or their underlying assets (USD billion).

Sources: CDP, CPLC, TPI, WMB, NAZCA

Reliability

CARBON PRICE RANGE ADOPTED

Institutions by number

Chart - How to read

Distribution of institutions that adopted and disclosed a carbon price, by actual carbon price range. The distribution can be based on the number of institutions or their underlying assets (USD billion), while the carbon price range is expressed in USD/tCO2.

Sources: CDP

Reliability

Climate scenario tools

Climate scenario tools

Institutions by number

Chart - How to read

Distribution of institutions that integrated temperature and climate scenario tools to support decision making, and the level of sophistication of the scenario used. The distribution can be based on the number of institutions or their underlying assets (USD billion).

Sources: PRI, TPI

Reliability

Climate risk due diligence

Climate risk due diligence

Institutions by number

Chart - How to read

Distribution of institutions that have adopted internal climate risk due diligence and related procedures, distinguishing between organizations that so far committed to do so and those that have already put measures in place, and the degree at which they are integrated across the operational and strategic levels of the organization. The distribution can be based on the number of institutions or their underlying assets (USD billion).

Sources: PRI, TPI, CAFI

Reliability

Climate-related accountability

Climate-related accountability

Institutions by number

Chart - How to read

Distribution of institutions that have adopted measures for climate accountability, looking at the extent of accountability and incentives for chief and operations-level staff, and at the existence of dedicated staff responsible for coordinating climate action. The distribution can be based on the number of institutions or their underlying assets (USD billion).

Sources: PRI, TPI, SSEI

Reliability

Shareholder / client engagement

Shareholder / client engagement

Institutions by number

Chart - How to read

Distribution of institutions that have committed to engaging shareholders or clients on climate action, or that are taking the necessary steps by mandating climate reporting requirements or through active ownership. The distribution can be based on the number of institutions or their underlying assets (USD billion).

Sources: PRI, PRB, SSEI, 2Di FM, CA 100+

Reliability

Flows indicators


Investment trends

Investment trends

USDm *2019-2020 data is incomplete

Chart - How to read

Bars show the volume of transactions in primary low-carbon and climate-resilient investments, and green bond issuances. Figures are always expressed in USD million.

Sources: BNEF, CBI, CPI, NAZCA, RAN

Reliability

Portfolio alignment

PORTFOLIO ALIGNMENT

Institutions by number

Chart - How to read

Distribution of institutions based on the assessment of the share of their investment portfolios exposed to climate-critical activities as either aligned or misaligned with Paris goals. The distribution can be based on the number of institutions or their underlying assets (USD billion).

Sources: FFD, FinanceMap, TPI

Reliability

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