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Transition pathways: definition and adoption challenges 

Day 1 Afternoon

Wednesday 07 September

Room :



Sylvie Goulard
Second Deputy Governor - Banque de France
Public Authorities
Jean Boissinot
Deputy Director, Financial Stabity & Head of Secretariat, NGFS - Banque de France
Johanna Fager Wettergren
Head of Sustainable Finance - Finansinpektionen
Sacha Sadan
Director of ESG - Financial Conduct Authority (FCA)
Industry Representatives
Angus Graham
Sustainability Chief Financial Officer - UBS
Melissa Ocampo
Head of Sustainability Strategy in EMEA - SMBC Bank International plc (SMBC)
Antje Stobbe
Head of Stewardship - Allianz Global Investors GmbH
Sinthuja Yogarajah
ESG Integration, Responsibility Platform - Federated Hermes Limited

Objectives of the session

In the context of the implementation of COP 21 agreement modern economies are now facing the development of a multitude of transition plans, elaborated at different scales (national, sectoral, European…) and by different organizations: NGOs, FIs, companies, states, public institutions, trade organizations…

The differences in scopes (e.g., focus on risk, local, regional, sectoral…), the political need to be progressive, the type of social implications anticipated, the conflictual appreciation of the level of brown investments required during the transition phase, technological uncertainties, end up with a deep lack of coherence between these plans. A non-standardization in the definition, methodologies and assessment of transition pathways also raise challenges.

Since financial institutions are perceived as instrumental for the success of an effective and swift enough transition toward carbon neutral economies, high expectations are placed in this regard on financial institutions. However, the lack of clarity and consistency on transition planning raises many challenges to financial institutions. Finally, the transition planning process exposes FIs to a reputational risk, which is not easy to define and quantify, but can have a significant.

The session is therefore, intended to take stock on the transition planning challenges raised to the financial sector, and to identify the policy initiatives required to improve the situation.

Points of discussion

  1. What are transition pathways made for?
  2. How important is reputation risk for financial institutions and how to mitigate it?
  3. How can banks better define and communicate their approaches to transition?
  4. What policy priorities at EU and national levels should be put forward to improve the situation?