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Posted by Fred Winegust

Is it possible that lessons learned by financial services organizations from operational loss data event capture activities can improve the value of carbon measurement and reporting methods?

Is it enough to capture and disclose Scope 1 / 2 / 3 carbon emissions at a company level as is done by many organizations aligned with the Carbon Disclosure Project (Click Here) , or could more action be taken if the carbon disclosing and reporting effort learned some lessons from a number of financial services operational loss data capture exercises sponsored by organizations such as the Bank of International Settlements, (Click Here) or the Operational Riskdata eXchange Association (Click Here)

Many financial services organizations today are capturing and reporting their operational risk losses by loss type and category, so specific risk concentrations can be identified by risk type and business line affected. Specific risk types and lines of business for financial service organizations were laid out in Annex 8 & 9 of the Basel Accord. (Click Here)

Scope 1 / 2 / 3 carbon emissions have been defined, and some methods of measurement have been put in place, To date, the voluntary disclosure of carbon emissions continues to be aggregated at the top level of the corporation, with no direction or obligation to capture the information for specific of business, would the carbon measurement effort benefit from learning some lessons from financial Services?

You might recall that there is a video on the Risktech site which features Christopher Wells of Grupo Santander talking about the link between Environmental Risk and Credit Risk. Is this a possible place to begin linking environmental risk to specific lines of business? Can this thought be extended for use in better carbon disclosure and analysis within specific industries and between industries?

Christopher Wells of Grupo Santander Brazil, along with Jim Harris, former leader of the Canadian Green Party and Guillermo Kopp, a senior Financial Services analyst, all appeared in a video series focused on the business value of green to financial services, which ran on Ecotech between September 2008 and June 2009.

All three will be joining me on-line on Thursday at 10AM Eastern to jam with the participants of the "Raising the Bar" stream of the IBM Eco-efficiency jam, The question which will be under discussion "What actions are different industries taking now to prepare for a "low carbon economy?".

To familiarize yourself with the business value of Eco-efficiency to financial services who are using the recent financial crisis as a starting point to rethink the business model, develop new intelligence and integrate risk management, please download the following 1 page presentation which points you to various videos and white papers on the topic. The presentation needs to be in full screen mode, if you are to activate the underlined links and view the video. (Click Here and save the 1 page to your hard drive before opening in full screen mode)

To learn more about the Eco-efficiency jam and the types of conversation streams which are active between January 27 and 29 , please visit the jam information site. (Click Here)

If you want to rear or actively participate in the evolving discussions or join us at 10AM Eastern on Thursday January 28 in the "Raising the Bar" stream, to discuss this topic further, please register for an Eco-efficiency jam ID (Click Here)