Back to all projects

Development of European Stability Mechanism (ESM) ESG Framework

ESM/Deloitte

April 2, 2023
Climate Risk Management
ESG Strategy
Green and Sustainable Finance Solutions

Narrative description of Project:

On behalf of Deloitte, CLA as subcontractor supports ESM in implementing and developing ESG framework(s) and Policies, which include tailored support in the design and implementation of an overall structured and coherent ESG approach for the ESM, carbon emissions reduction measures; carbon intensity disclosure and measurement both in relation to building/operations and capital market related activities; responsible asset management; climate risk management and measurement; climate risk and scenario analysis. 

ESM’s Risk Management department requested Subject Matter Expert (SME) support with previous experience in working/helping comparable IFIs or banks to assess and manage climate change risks, in particular for their investment portfolios. Prior to this request, ESM concluded the benchmarking exercise that identified gaps between current practices and regulations/guidelines on how to incorporate climate change in Risk Management (UNPRI, TCFD, ECB, EBA, BCBS).

Description of actual services provided by your staff within the assignment:

Task 1: Climate risk materiality assessment procedure

  • A ‘skeleton’ draft of a procedure to perform materiality assessment (i.e. matrix or heatmap assessing the impact of climate change on business/balance sheet at different time horizons)

Task 2: Climate risk assessment

  • Support/execution of materiality assessment (metrics/KPIs for the quantification of material climate-related risks models and methodology for climate stress tests/scenario analysis)

Other projects
Moldova
EXPLORE

Greening MAIB – Enhancing Sustainability and Green Lending (Phase I) and Climate Risk Management Framework (Phase II)

GGF/maib

Supporting MAIB in developing and implementing a comprehensive sustainability strategy and climate risk management framework to enhance green lending and integrate climate risks into credit processes.

Climate Finance Strategy for National Bank Egypt

AFD/NBE

Supporting National Bank of Egypt in developing and implementing a comprehensive Climate Finance Strategy and integrated Climate Risk Framework, aligned with IFRS S2, TCFD, and Egypt’s national climate commitments.
Jordan
EXPLORE

EBRD CCG Facility: CCG and Paris Alignment Advisory for Bank Al Etihad (BAE) – Phase I & II

EBRD/RINA

Supporting Bank Al Etihad in aligning with EBRD’s Paris Agreement principles through climate risk diagnostics, action planning, and a comprehensive climate transition plan under the CCG Facility.

Deep greening – Mainstreaming Green Lending and Sustainability at GGF Partner Bank, Bank du Caire

GGF, Bank du Caire

Technical assistance to Bank du Caire to integrate green lending, climate risk management, and sustainability practices in line with Central Bank of Egypt regulations and international standards.