Transition – from bottlenecks to acceleration

19 Dec 2022 News

Natixis CIB’s recent Green Summit in Paris covered a broad range of topics: net zero promises and stalemates, the interplay between inflation and transition, the quest for adaptation finance, greenwashing mitigation, ESG data uses and misuses, and the potential role and pitfalls of carbon offsets, to name just a few.

 

The conference brought together more than 370 participants and 55 panelists for a plenary session, eight workshops and eight open stage discussions delving into how to fast-track the transition in a context of deep uncertainty, avenues to make it acceptable from a social standpoint, while adapting to a changing climate and halting biodiversity loss.

 

The open stage discussions hosted by Natixis CIB’s specialists dived deep into the range of product and technological know-how developed within the Group on topics such as decarbonizing hydrogen, metals, batteries, aviation, reviewing technologies merits and limits. A critical review of SLB promises and experience sharing on our Green Weighting Factor were also proposed.

 

The need for robust and usable methods, which rely on reliable and comparable data, was at the heart of the debates: how can we define a net-zero trajectory using precise and realistic criteria, especially for each individual entity? Greenwashing practices and allegations have come under increased scrutiny from civil society and regulators, but yet there is still no standardized definition of this multidimensional term. Regulation has stepped up to combat greenwashing but are these moves really relevant, or are they actually counterproductive?

 

Looking beyond the energy transition’s climate dimension, the “fair transition” is a priority now more than ever, given current inflation challenges and the energy crisis. Here again, discussions highlighted the need to agree on a shared definition, particularly with a view to ensuring transparency for investors. Ostrum shared its three-pronged approach, based on reducing carbon footprints, promoting social impacts and preserving ecosystems and local economies.

 

A panel was also devoted to the preservation of biodiversity, which is much more challenging to measure than CO2 emissions. Talks focused on the need of a systemic approach combining both carbon and biodiversity measurement particularly as they can affect each other. Tackling biodiversity changes from a “land” perspective emerged as a driver for action.

A role-playing game about the advent of a climate financial crisis was proposed, asking participants to develop their own scenarios and timeline leading to a “green swan”. Throughout this simulation, participants identified a few recurring patterns, triggers, and potential remedies.


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