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Daily ESG Briefing: Dutch pension funds manage climate risks better than banks and insurers, says central bank

The latest developments in sustainable finance

Dutch pension funds are better at managing climate risks than insurers and banks in the country, according to Dutch central bank DNB. Overall, however, the regulator, based on an assessment of 127 Dutch financial institutions, found that most “do not yet have an adequate embedding of sustainability risks in risk management”. Its survey revealed that a minority of pension funds (30%) have explicitly included sustainability risks into their risk management, compared with even fewer insurers (22%) and banks (10%).   

Ontario Teachers’ Pension Plan (OTPP) has acquired an undisclosed stake in GreenCollar, a project developer focused on carbon markets and other environmental credit markets across Australia. OTPP joins KKR’s Global Impact Fund as an investor in the Sydney-based business. Terms of the deal were not disclosed. 

Think-tank 2° Investing Initiative plans to incorporate Inevitable Policy Response’s (IPR) core scenarios into its climate scenario analysis tool PACTA next year as part of a collaboration with the PRI-backed initiative. The duo also collaborated on a new disorderly transition metric which has been added to PACTA to help investors assess the impact of future disruption on portfolios. The new Transition Disruption Metric is based on the IPR’s new Forecast Policy Scenario which reaches out to 2030.  

The Responsible Business Alliance’s Minerals Initiative and advisory firm TDi Sustainability have launched an online platform providing ESG data associated with more than 21 raw materials across 30 industries. The profiles within the Material Insights Platform include data on key ESG potential negative impacts relevant to each material, with reports linking the material to ESG risk factors, a series of grades to measure the severity and credibility of allegations in the reports, and an overall salience score for the material in each ESG risk category.