Lending Forests A Hand——Results From The CDP Financial Services Climate Change and Forests Pilot 2020
The financial services sector will be critical in achieving the transition to a low-carbon, deforestation-free economy. Achieving net-zero will require massive investment in low-carbon technologies and sustainable agriculture, which only the financial sector can provide.
CDP aims to expand its questionnaires to cover a full range of environmental factors. For financial institutions, that means covering the impacts they have through their lending, investments, and insurance underwriting.
In 2020 CDP launched its first reporting framework specifically for the sector, focused on climate change portfolio impact. In delivering this pilot project, CDP integrated forests-related metrics into the existing reporting framework for financial services, rather than creating a standalone forests questionnaire. CDP used the reporting framework to engage with banks, using methods throughout the project which were collaborative and focused on awareness-raising and capacity building.