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Climate Coffee | OCC, ISSB, TCFD, US GRID | Episode 4 - YouTube
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hi everybody welcome to another episode
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of climate coffee our first of 2022. so
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happy new year to you i wanted to cover
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some climate regulations coming in both
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globally and in the us
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as well as some of the interesting
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details that we're seeing in terms of
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how climate risks are actually
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manifesting in the world today so
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without any more let's get into it
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so tcfd has played a massive role in
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shifting the narrative around
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climate-related risks tcfd was initially
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set up by
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mike bloomberg
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mark carney
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some big organizations like that and i
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think there's been something like 300
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growth
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in terms of the companies and the
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corporates and the financial
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institutions that are
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using the tcfd for their regulatory
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disclosures
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i think we're about two and a half
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thousand signatories now but there's a
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new kid on the block from cop26 the issb
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or the ifrs are only adding to the
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alphabet soup
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but effectively they're taking the
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mantle from the tcfd they're actually
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rolling up a few other organizations
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such as the um the cdsb and the value
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reporting foundation and many of these
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others they've taken on a lot of
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information from the tcfd and they're
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rolling out this new global approach in
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terms of how we're looking at
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climate-related risks across finance and
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across the wider corporate world so
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in terms of the issb there's been a
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technical readiness working group or the
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trwg because there's not enough acronyms
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and they published a prototype climate
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scenario set and also a general
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disclosure set of requirements so
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results over the last six months they've
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come from as i mentioned the cdsb from
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the tcfd from the world economic forum
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and a few other acronyms
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but really the technical readiness
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working group program have looked at
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defining physical risk they talk about
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pretty much everything that we have
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talked about here before the risks that
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may carry significant financial
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implications for entities such as direct
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damage to assets and indirect damages
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through things like supply chain
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disruptions
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and entities financial performance will
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now be affected by things like water
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availability or scarcity obviously the
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inverse food security which we're going
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to talk about in a minute and extreme
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temperature changes affecting premises
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operations supply chains transportation
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needs and employee employee safety
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the second deliverable is actually a set
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of climate related disclosures which are
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prototype built out from the tcfd and
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they take all the regular boxes there's
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not so much necessarily to go through
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here but you go through obviously
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governance strategy risk metrics uh risk
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management sorry and the metrics and
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targets
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so really the issb is carrying on the
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good work that the tcfd has done please
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do look at the article it's going to be
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in the newsletter which i'll discuss in
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a minute um to dive in more the second
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is around the occ in the united states
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which is the office of comptroller of
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the currency i've never heard the word
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comptroller before uh but basically the
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occ released a set of draft principles
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draft principles for climate-related
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financial risk management for large
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banks in the u.s banks that are managing
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over a hundred billion in assets under
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management so they're looking at
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physical and transition risk risk
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management looking at different
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scenarios and this is a high-level
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framework consistent with a lot of the
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frameworks that we've seen before but
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just another example of really these
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regulatory frameworks coming in to put
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pressure on banks
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there was another great article i think
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it was in the ft this weekend and
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basically they talked about how
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you know in the same way that large oil
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and gas companies like exxon and
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obviously the stuff with the engine
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in terms of um shareholder uh you know
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more aggressive kind of shareholder
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action and challenging them around
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climate risks there's a brilliant
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opinion piece in the ft which basically
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suggests that banks are going on the
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chopping board next that really they
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need to start showing how they're going
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to be doing their transition risk or
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their transition pathways and how
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they're actually going to be looking at
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addressing
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and assessing the climate-related risks
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or else they're going to get significant
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pressures as well and they could be
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next in terms of threats
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following on from oil and gas so a
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really stark warning to the financial
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industry get your together uh the
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last article i wanted to highlight today
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is really just showing that yes this
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regulation is happening but there's real
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things going on at the ground
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in bloomberg climate disasters are
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threatening the u.s grid at least 17
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of global power lines are vulnerable
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from climate hazards according to new
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research from bloomberg
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mef which is new energy finance and
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roughly one in five global power lines
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heavily exposed to rising sea levels to
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hurricanes to wildfires and other
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climate related risks and ratings
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agencies have actually started to
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downgrade
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the utilities in the u.s
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at least nine energy companies have been
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downgraded due to physical risks over
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the past three years so it's not just pg
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e which was the first climate bankruptcy
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there's a lot more and it's really
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significant the last article i wanted to
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reference really quickly is just one
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that shows you how supply chains have
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been impacted by covid
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climate is also going to impact supply
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chains in a significant way we've
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already seen it happening in agriculture
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as this article describes basically
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showing that the prices are shooting up
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in agriculture in the same way they are
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with semiconductor manufacturing and
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this is only going to get worse
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if you found this interesting please do
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comment like subscribe and more
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importantly we're going to be writing up
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all of this information along with three
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or four other core headlines in our
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weekly newsletter which you can
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subscribe to it's on my links here it's
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going to be on the sus global channel as
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well this is gonna be a weekly climate
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coffee newsletter to accompany this
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content where we go into a bit more of a
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deep dive a bit more um
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a bit more of an in-depth written
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analysis and i hope it will be helpful
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for you as you chart your climate
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transition pathways my name is josh
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gilbert i'm the ceo and co-founder at
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sust global and we're doing climate
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coffee as ever look forward to checking
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with you next week thanks
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