Navigating the coal transition

This webinar reviewed the new coal mining sector methodology and assessment results conducted by the TPI Global Climate Transition Centre (TPI Centre) at the London School of Economics and Political Science.

During the panel, a range of questions related to the decarbonisation challenges that coal mining companies face were discussed.

Commenting on the coal mining sector data, Jason Mortimer highlighted three reasons the TPI data are useful:

1. Comparable Analysis: bottoms-up data across the sector enable investors to access risks, make informed investment decisions throughout the investment process, and engage with the sector productively.
2. Better Disclosures: transparency of disclosure is the first step to improving data availability, as corporate issuers are motivated to improve disclosures to raise their appeal with sustainable investors.
3. Data Accessibility: open, free access to high-quality TPI data can promote the mainstreaming of transition risk pricing and better market efficiency, especially in Asia where investors may lack in-house specialists or face capacity constraints. Overall, he believes investors should consider transition risks holistically and invest in real-world decarbonisation rather than over relying on simple sector exclusion rules.

When asked about recommendations for government policymaking on the transition to net zero, Mathilde Mesnard said:

Here are a few resources provided by the OECD related to this topic:

• Accelerating Climate Transition Planning in Indonesia
• Responsible Business Conduct in the Financial Sector

In addition, the speakers discussed, among other things:

• The significance of the coal mining sector in the net zero transition
• Investor and policymaker perspectives on the assessments
• Recommendations and improvements for the coal mining sector