CDIAC PRESENTS:
A RECAST OF THE CDIAC PRE-CONFERENCE TO THE BOND BUYER 2020 CALIFORNIA PUBLIC FINANCE CONFERENCE
Register for Replay Through Education Portal | Slides
Note: The complete program including, replays, transcripts, and slides are available in the CDIAC Education Portal. Registration required but materials are free.
The municipal market has the expectation that issuers will give investors the information they need to make prudent investment decisions. Recent events and market volatility have accelerated the demand for issuer disclosure on how external impacts, such as climate change, can translate to investment risk as well as how issuers are mitigating these risks. Issuers are faced with reconciling how to account for and incorporate these risks in their financial disclosures. This dilemma is exacerbated by the unprecedented and dynamic nature of this topic, as it makes it difficult to discern what information is accurate, relevant, and “material” for the investor. Join us in this two-part series where we will discuss investor expectations for climate change disclosure and how issuers are contending with these expectations.
Session 1 | Market Expectation for Climate Change Disclosure
This discussion will explore the market’s perspective of how climate is shaping credit quality, how investors are analyzing investment risks related to climate change, how an issuer should address climate change in their disclosures, and how market expectations have evolved over time.
Moderator: Robert Berry, Executive Director, CDIAC
Margaret Backstrom, Managing Director, Morgan Stanley
Kate Gordon, Director, Governor’s Office of Planning and Research | Senior Policy Advisor to the Governor on Climate
Jennifer Poree, Analytical Manager and Head of Municipal Cooperative Utilities, S&P Global Ratings
Sarah Wilson, Senior Director, Responsible Investing, Nuveen
Session 2 | The State of Climate Change Disclosure: Issuer Approaches and Practices
This session will explain the fundamental legal requirements for disclosing climate risk, present new CDIAC research on the climate disclosure practices of California enterprise issuers, and discuss strategies that some issuers have used to model best practices for disclosure of climate risk.
Moderator: Richard Freund, Sustainable Infrastructure Manager, CDP
Michael Brown, Environmental Finance Manager, San Francisco Public Utilities Commission
Kelly Joy, Senior Research Specialist, CDIAC
Lakshmi Kommi, Director of Debt Management, City of San Diego
Rudy Salo, Partner, Nixon Peabody
Series Resources
Slides
- Session 1 | Market Expectation for Climate Change Disclosure
- Session 2 | The State of Climate Change Disclosure: Issuer Approaches and Practices
CDIAC Resources
- Climate Change Disclosure Among California Enterprise Issuers Report, October 2020
A report that features an original CDIAC study of disclosure practices of climate risk from 171 unique enterprise issuers over a three-year period - Green Bonds Series Resources
Educational publications, trainings, and supplementary resources related to green bonds and other topics related to climate change and ESG issuance.
Cal-Adapt
Cal-Adapt Website is a source of online tools, data, and resources related to climate change in California. New website features and data sources are added on an ongoing basis.
California Department of Finance
- California Climate Investment Framework
Governor Newsom and the California Department of Finance released the California Climate Investment Framework in September 2020, which integrates climate risk strategies of the state’s three largest pension funds into a unified statewide approach. This framework was released in response to the Governor’s 2019 climate executive order N-19-19.
Governor’s Office of Planning and Research / Integrated Climate Adaptation and Resiliency Program (ICARP)
Established the Adaptation Clearing House, which serves as a centralized source of information and resources to assist decision-makers at the state, tribal, regional, and local levels when planning for and implementing climate adaptation and resiliency efforts across California. They have Tools, Datasets, and Research to support California planners and decision makers. Research most applicable to this webinar series include:
- Climate Adaptation Finance and Investment in California, October 2018
This guide intends to provide a survey of issues, considerations and sources of funding that can help guide strategies and tactics for investing in adaptation and resilience in California.
California Natural Resources Agency
- State of California Sea-Level Rise Guidance: 2018 Update
A report from the California Natural Resources Agency and California Ocean Protection Council published in 2018 that provides peer-reviewed methodology created by several climate scientists for how governments can assess risks from sea-level rise to their areas.
California Public Employees’ Retirement System (CalPERS)
- CalPERS’ Investment Strategy on Climate Change
First report in response to the Taskforce on Climate-Related Financial Disclosures (TCFD) - Physical Risks of Climate Change
A recently published framework for climate change disclosure that formed part of the basis of the rubric used in the CDIAC study of climate change disclosure among California enterprise issuers.
CDP
- Cities at Risk
A web-based report published by CDP about the pressures from climate change faced by cities across the globe, and what this means for governments and citizens. - CDP Open Data Portal
A portal of publicly-available data from cities, states, and other regions that disclose through CDP.
Chartered Professional Accountants of Canada (CPA Canada)
- Enhancing Climate-related Disclosure by Cities: A Guide to Adopting the Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)
A report published by CPA Canada in October 2019 that provides suggestions for governments interested in adopting TCFD recommendations. - Disclosing the Impact of Climate Change: A Process for Assessing Materiality
“This publication sets out a process and considerations to assist companies in assessing materiality of climate-related matters.”
Federal Emergency Management Agency (FEMA)
- National Risk Index
Dataset and online tool to help illustrate the United States communities most at risk for 18 natural hazards.
Government Finance Officers Association (GFOA)
- ESG Considerations for Governmental Issuers, June 2020
A GFOA publication about opportunities and risk factors associated with ESG investments and “why governments should make them a priority.”
Market Risk Advisory Committee of the U.S. Commodity Futures Trading Commission
- Managing Climate Risk in the U.S. Financial System, September 2020
Report of the Climate-related Market Risk Subcommittee of the U.S. Commodity Futures Trading Commission that details the risk climate change poses to the stability of the U.S. financial system and the U.S. economy.
Principles of Responsible Investment (PRI)
- The California Responsible Investment Roadmap, September 29, 2020
A collaboration between the PRI and the Climate Risk Initiative at UC Berkeley School of Law’s Center for Law, Energy & the Environment (CLEE). It draws on interviews with stakeholders and experts in California, including state policymakers and financial regulators, fiduciaries, and asset owners (representing both the public and private sectors) who already integrate ESG factors into their decision-making.
Stanford Law School, Steyer-Taylor Center for Energy Policy and Finance
- Developing Climate Risk Disclosure Practices for the State of California, September 2021
The report offers over 45 recommendations to help the state better account for climate risks and opportunities impacting its $262 general operating budget and the combined $1 trillion in AUM across the state’s biggest pensions.
Sustainability Accounting Standards Board (SASB)
- TCFD Implementation Guide, May 2019
A SASB report about how to use the SASB standards and CDSB framework to “enhance climate-related financial disclosures in mainstream reporting.” - Converging on Climate Risk: CDSB, the SASB, and the TCFD, September 2017
A SASB report published in September 2017 about the alignment between three different approaches and frameworks used to disclose risks related to climate change.
Taskforce on Climate-related Financial Disclosure (TCFD)
- TCFD Knowledge Hub
A platform for resources related to TCFD, including information about TCFD recommendations, case studies, and online courses. - Recommendations of the Task Force on Climate-related Financial Disclosures, June 2017
Original TCFD recommendations report. Some of the criteria developed for the TCFD report factored into the rubric used in the CDIAC study of climate change disclosure among California enterprise issuers. - Task Force on Climate-related Financial Disclosures: Status Report
TCFD progress report published in June 2019 with information about the adoption of TCFD recommendations published in 2017.
CDIAC Information
If you have any questions regarding this program or would like to suggest resources, please contact CDIACEducation@treasurer.ca.gov.
Many of these organizations, companies, and professionals are regular and valued contributors to the fulfillment of CDIAC’s educational mission; however, CDIAC does not endorse any particular private company. In addition, the information presented and opinions expressed in the resources and content provided is solely that of the professionals and organizations cited. Resources are provided on this page as a courtesy, and CDIAC does not maintain or validate information provided by external organizations.