Context
The 2015 Paris Agreement represented a watershed moment in the global response to climate change. It required countries to commit to Nationally Determined Contributions (NDCs), outlining and regularly revising a strategy for how they will reduce greenhouse gas emissions, as well as adapt to the changing climate. Building on these commitments, companies and investors are beginning to mobilise to support the objectives of the Paris Agreement. Companies are figuring out how to transition their businesses towards a low carbon economy, as well as improving related reporting and disclosures. Conversely, investors are seeking to understand the environmental strategy and credentials of companies.
Comparison and benchmarking of companies is, however, difficult. The disclosure and quality of reported data on corporate climate targets, greenhouse gas emissions, transition strategies, and other environmental factors remains inconsistent, with large variations between countries and sectors. Policymakers and regulators across the world are also developing diverse frameworks for assessing climate risks, and investors have a vast range of methodologies and approaches available to them to identify opportunities. All of this can add to the existing complexity of financing the low carbon transition.
The AIIB – Amundi Climate Change Investment Framework
Launched in September 2020, The AIIB - Amundi CCIF* aims to provide investors with a benchmark tool for assessing an investment against climate change-related financial risks and opportunities. It translates the three objectives of the Paris Agreement into fundamental metrics that investors can use to assess an investment’s level of progress towards achieving climate change mitigation, adaptation and resilience, and low-carbon transition objectives. For each objective, the CCIF* sets out key metrics that can be used to assess financial risks and opportunities. The CCIF was jointly developed by AIIB and Amundi and was endorsed by the Climate Bonds Initiative.
About this report
This report presents the research application of the AIIB - Amundi CCIF*. The CCIF* aims to provide investors with a benchmark tool for assessing an investment, at the issuer-level, in relation to climate change-related financial risks and opportunities. The approach translates the three objectives of the Paris Agreement into fundamental metrics that investors can use to assess an investment’s level of progress towards achieving climate change mitigation, adaptation, and low-carbon transition objectives.
This report presents the results of research conducted by three leading climate finance research organizations. Here, Fitch Solutions, The Carbon Trust and the Climate Bonds Initiative have applied the CCIF to sectors, companies, and debt issuers. The research universe comprised of companies domiciled in AIIB Members, predominantly in emerging market (EM) Asia, and operating within major infrastructure sectors including energy, water, sustainable cities, transport, and digital infrastructure. This report reviews the overall market and does not cover AIIB and/or Amundi-specific funds.
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*CCIF: Climate Change Investment Framework
