NEWS & EVENTS
March 18th, 2021
Green RWA first General Assembly
On the 18th of March Green RWA hosted their first General Assembly, with 75% of members present and all corporate members represented.
It has been the opportunity to confirm the positive market perception of Green RWA climate credit risk approach and to present the first technological tools built upon the foundational CERM.
In this context, the Green RWA platform will be progressively extended over the next weeks with the ambition to foster collaboration between players from the real economy (geo physicians, economists, engineers) and finance (mathematicians, quants, risk managers) and to set standards and common methodologies on climate credit risk in fixed income portfolios.
A new Ambassador Program is launched immediately to help create awareness about the work of Green RWA and extend its members community.
Thanks to our members community for their trust and support in this great journey on climate finance.
December 14th, 2020
Green RWA welcomes German Consultancy FORRS as its First Corporate Member
Can climate change be fought through smart financing? The goal of Net Zero Emissions by 2050 requires massive investments and Green RWA is convinced that banks have a vital role to play. In their view, economic and environmental goals are not opposed, but rather can work hand in hand. What’s missing today is a model for banks to assess economic and climate-related risks and rewards. With such a tool, banks can make financially sound lending decisions that drive the greatest positive
environmental impact. Green RWA announced today that FORRS has joined Green RWA as its first corporate member. FORRS, a Germany consultancy, will support Green RWA, advising banks on climate risk assessment, as well as implementing appropriate models and identifying the relevant data sources to feed these
Stefan Weichert, Director of FORRS, said, ''We are impressed by the vision of Green RWA and the mathematical risk model they are building with the help of Professor Josselin Garnier. We are very much looking forward to co-operate with Green RWA in Germany and to support their mission in our financial community.''
Luc Olinger, Director of FORRS, added, “Financial institutions will change their investment behaviour in the near future towards a strong ESG (Environmental, Social, Governance) orientation. With their approach, Green RWA addresses the most relevant challenges for banks in their transformation towards sustainable lending behaviour. We anticipate great demand for implementing ESG-
compliant asset allocation strategies.”
Olivier Vinciguerra, Chair of Green RWA said, 'We believe that banks can and will finance the green transition, and that innovative climate risk models are needed for banks to assess their risks and reorient their loan books. One of Green RWA’s goals is to deploy our model with the support of local consultancies in every country. We are delighted to have FORRS and its team of experts in banking business matters and technology deployment supporting us with German market outreach.''
FORRS Partners is an expert consulting firm in the financial, energy and commodities industries. Founded in 2015, FORRS focuses on mission-critical projects along the complete trading value chain to service clients who are actively participating in all kinds of markets.
More on FORRS here
About Green RWA
Green RWA (Risk-Weighted Assets) is a non-profit association, rooted in the belief that climate transition will require the entire financial community to work in conjunction. The investments in OECD has identified to successfully achieve Net Zero Emissions by 2050 require banks to accelerate the green transition. Green RWA is committed to this goal by working with financial institutions to optimise their climate risk capital budget. Rigorous analysis and open collaboration as well as employing open financial modelling can help institutions meet this goal.
More on Green RWA here
October 20, 2020
Green RWA To Endorse The UNEP FI Principles For Responsible Banking
Green RWA announced today it has endorsed the Principles for Responsible Banking launched by United Nations Environment Programme Financial Initiative (UNEP FI). The principles adopted by more than 130 banks worldwide are defined and managed by UNEP FI. The framework targets financial institutions who commit to deliver a plan aligned with Sustainable Development Goals (SDGs) and the Paris Climate Agreement.
Non-banking financial institutions may endorse the UNEP FI principles, and Green RWA has signed its endorsement letter with UNEP. Olivier Vinciguerra, Chairman of Green RWA, stated, “I am impressed by the work of UNEP FI and the deep network of banks which have signed the Principles. Green RWA is committed to supporting these principles through our collaboration, communication and assistance to the financial community.”
Details of the pledge can be found here.
September 21, 2020
Anne Gruz Joins Green RWA Executive Committee as Head of Climate Financial Risk
Green RWA has appointed Anne Gruz as Head of Climate Financial Risk and a member of Executive Committee. Anne will lead the financial streams, including the foundational climate risk model Green RWA is pursuing to help banks analyse their balance sheets risk against climate change.
Olivier Vinciguerra, Green RWA chair, said, “Regulators and banks are gearing up to
anlayse their climate risk. Anne has deep experience in financial risk, and she will
expedite our mission and goals by providing key analytical modeling to achieve results.”
Anne stated, “I believe that financial institutions need greater focus on understanding, measuring and mitigating the impact of climate change, while adapting to the new paradigm. Financial firms will inevitably play a key role in transforming the economy by providing risk-based pricing, better aligned with climate-related goals. Green RWA is a great initiative that helps channel practitioners’ energy towards them and build resilience via new risk analytics. I am very excited to join Green RWA.”
September 9, 2020
Finextra Interviews Adrian Sargent, Treasurer of Green RWA
Adrian Sargent, Treasurer of Green RWA, explained to Finextra the mindset and the methodology behind the association’s white paper, published this summer.
Quoting Finextra, “We propose that firms take the traditional risk calculation, add on
transitional risk, add on physical risk, and we are presented with a new approach to risk weighting of assets.”
This approach is essentially Green RWA’s mission and goals in bringing awareness and educating financial and environmental participants to transform bank loan books to achieve Net Zero Emissions by 2050.
Read the full article on Finextra website here.
September 4, 2020
Professor Josselin Garnier To Support The Financial Risk Model Published By Green RWA
Following the publication of the first white paper published in July, Professor Josselin Garnier will join Green RWA in the second of the white paper series. Professor Garnier is a mathematician, professor at École Polytechnique, and Head of Research at Lusenn. He has published over 200 articles and several works of reference, including in finance.
His research lies at the interface of probability theory and analysis. It mainly concerns the modelling and study of random phenomena, and, in particular, wave propagation and imaging in complex media, uncertainty quantification in numerical simulation, and stochastic algorithms. In recent years, he has proposed and studied passive imaging techniques, exploiting signals from opportunistic sources or from ambient noise. His work makes it possible to quantify the confidence in the predictions and in the decisions resulting from such simulations when taking into account the uncertainties of the values of the physical parameters, the environmental conditions, the manufacturing errors, and/or the recorded or neglected phenomena and their modelling.
Professor Garnier said, “Banks have a key role to play in the energy transition and the model I will be helping to refine is very efficient for banks to measure their risks and rebalance their climate risk capital.”
Olivier Vinciguerra, Chair of Green RWA and co-writer of the white paper, said “We are delighted to get the support of Josselin, a worldwide renowned Probability and Financial Mathematics teacher. His contribution to the foundation model will accelerate the recognition and deployment of the framework we want to propose to the banking community.”
The second white paper of the series is expected to be published in the fourth quarter of 2020 and will feature a refined model with advanced portfolio analysis, with the support of ESG data providers and economists, providing banks a first comprehensive analysis of the impact on capital.
The increase of available data is a challenge for classical mathematical models. Biology, physics, finance, economics and other social sciences are each affected in their own way. Lusenn promotes the formulation and the use of probabilities which have, over time, shown their effectiveness in all these areas. In finance, stochastic models or local volatility models, have been developed since the mid-1990s. They help improve market analysis, capturing the effects of the implied volatility, but they come up against the multi-scale properties of the data they process. Time series, for example, experience scale variations, and these variations make it more difficult to develop a model capable of reproducing multiple scale phenomena. One of the goals of Lusenn is to address these challenges by creating models that capture such complicated processes and make them applicable to pricing and hedging derivatives.
July 2, 2020
Green RWA To Publish The First White Paper
Green RWA published the first of the White Paper series, on Green Finance and the role of the banks in the low carbon transition. The summary of the White Paper is available in Publications page.
To read the full version of the white paper, please contact us.