The Research Collaborative on Tracking Finance for Climate Action is a network, led by the OECD, of governments, research organisations and finance providers. It is designed to serve as a platform for identifying research priorities and gaps, sharing information, weaving a coherent narrative across what would otherwise be disparate research outputs, as well as communicating results to raise awareness.

“Assessing the climate consistency of finance Taking stock of methodologies and their links to climate mitigation policy objectives” (October 2022)

In the decade for climate action, the financial sector urgently needs to align with low greenhouse gas emission pathways. Managing this transition requires robust assessments of progress. This paper analyses existing methodologies developed by commercial services providers, research institutes or civil society organisations for investors and financial institutions, to assess the alignment of their assets and portfolios with the Paris Agreement temperature goal.

Findings highlights that a range of different choices, as well as current scope and data limitations, impact the environmental integrity of alignment or misalignment results. The paper provides suggestions for more comprehensive and policy relevant financial sector alignment assessment. These include the development of methodologies to cover more financial asset classes than the current main focus on listed corporate equity, the development of more tailored mitigation scenarios by climate policy and science communities, better communication of uncertainties by all stakeholders, and the need for a series of indicators to assess progress and impacts that include but are not limited to GHG-based alignment assessments.

 5-7 October 2022 Virtual 

The 9th OECD Forum on Green Finance and Investment was held virtually on 5-7 October 2022, gathering senior policy makers and key public and private actors for action-oriented discussions on green and sustainable finance issues.

On day 2 (Thursday 6 October), the OECD's Centre on Responsible Business Conduct and Research Collaborative on Tracking Finance for Climate Action hosted two back-to-back sessions on "Connecting business and financial sector climate commitments to policy":

• Part 1: The role of responsible business conduct standards
• Part 2: Assessing alignment with climate mitigation policy goals

These sessions provided an opportunity for exchanging experiences and latest developments on approaches for promoting and assessing the alignment of investments and financing with climate policy goals.

• Watch the replays