Torunn Brn, Head of Green Finance, Kommunalbanken Oslo, 26 February - - PowerPoint PPT Presentation

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Nov 08, 2022 26 likes •136 views

Torunn Brn, Head of Green Finance, Kommunalbanken Oslo, 26 February 2019 Nordic Position Paper on impact reporting Based on, and to a large degree aligned, with Harmonized Framework for Impact Reporting and GPB Working Group on Impact

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Torunn Brånå, Head of Green Finance, Kommunalbanken Oslo, 26 February 2019

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Nordic Position Paper on impact reporting

Based on, and to a large degree aligned, with Harmonized Framework for Impact

Reporting and GPB Working Group on Impact Reporting’s sector impact reporting recommendations1

Adds more sectors (Green Buildings; Sustainable land use; Adaptation measures)
Designed as a user guide – ”one-stop-shop” – to impact reporting for issuers, while

at the same time explaining to investors how signatories do reporting

Suggests baselines and reference scenarios relevant in a Nordic context

1 As of Nov 2018, GBP impact reporting recommendations were available for: Renewable energy and energy efficiency; Water and wastewater management; Waste management and Resource-Efficiency projects; Clean Transportation

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Clarifying Nordic positions

Quantify impact based on

a) the share financed and b) amounts disbursed and outstanding

Distinguish between reduced and avoided emissions
Quantifying impact for green buildings
Same emission factor applied for all electricity projects

«OUR» OUTSTANDING SHARE OF THE IMPACT

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Reporting recommendations for Nordic project categories

Renewable energy
Green buildings
Energy efficiency
Clean transportation
Waste management
Water management
Sustainable land use / environmental

management

Adaptation measures

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Key recommendations

Report impact solely in relation to the share of the investment project that issuer has financed CO2-reduction and impact per invested USD only if impact is relevant and quantifiable Report impact based on amounts disbursed and

utstanding

FINANCIAL ENVIRONMENTAL PROCEDURAL

Expected impact, with actual impact as ambition CO2-baseline for electricity based on EU 26 + Norway: 380 g CO2per kWh Map project categories to the UN SDGs National regulations, e.g. building codes, as baseline when relevant Quantitative and qualitative reporting /CO2 equivalents + green indicators Project-by-project or portfolio basis Commit to report on Scope 1 and Scope 2 emissions. Scope 3 for future Annual reporting recommended for dynamic portfolios Disclose reporting period and process for project inclusion Annual reporting encouraged also for non-dynamic portfolios, but simplified approach may be used Summarize impact reporting results in an Executive Summary

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2019 update – material changes

Quick guide
Indicators for reporting integrated into core

document

Bond-by-bond vs. Bond programme reporting
Recommendations regarding SDGs and

climate-related physical risk

Clarification on energy savings vs. energy

reduced and energy avoided

Executive Summary template

Market consultation: ACTIAM, Affirmative AP2, CICERO, KfW, Mirova, NNIP Storebrand

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SDGs and climate-related physical risk

SUSTAINABLE DEVELOPMENT GOALS

Project categories in PP mapped against relevant SDGs
Encouraging issuers to include SDG information in their impact reporting.

Reference to the GBP SDG mapping guidance at icmagroup.org PHYSICAL RISK

Encouraging issuers to be transparent about climate-related physical risk of

projects or portfolio, where these are identified.

In such cases, transparency about risk mitigation.
Referencing TCFD recommendations and EBRD report (“Advancing TCFD

Guidance on Physical Climate Risks and Opportunities”)

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Example from KBN

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Executive Summary template

Template for one-page Executive Summary has been added:

Breakdown of project portfolio
Overview of quantified impact

indicators

Outstanding green bonds
Development in green bond issuance

and disbursements

Short descriptions of process for

project selection

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Electricity baseline: 380 g CO2/kWh

Mainland Europe including Norway chosen as the relevant baseline since interconnection and export surplus of electricity exist already from the Nordic countries and is planned to increase in the coming years and decades*. Other baselines, e.g. national grid factors, may be used for informational purposes.

* Seizing this opportunity depends on: a) build-out of wind capacity and necessary flexibility to handle variability; b) reducing Nordic demand through energy efficiency; and c) setting up the necessary inter-connectors and domestic grid strengthening to enable trade.

Source: Nordic Energy Technology Perspectives, 2016 (graph ES.5)

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