Are you a financial institution investing in emerging markets seeking to streamline your SFDR reporting process and stay ahead of the game for the upcoming reporting cycle? Look no further! In this webinar, we provide a comprehensive overview of the Joint Impact Model (JIM) and its wide-ranging benefits for various types of financial institutions, including private equity funds and other investment entities. On July 25th, The JIM Foundation hosted a webinar online where over 70 people joined. During the webinar, we delved into how JIM can help SFDR reporting by simplifying the process and ensuring high-quality results. Not only did we explore its applicability to PE funds, but also its potential for other investors in understanding and addressing Principal Adverse Impacts (PAIs) comprehensively, including PAIs 1-6. We also touched upon the recently published IFRS S1 & S2 and how the JIM can help align with these standards. With JIM, we have already assisted numerous investors in overcoming their reporting challenges. This powerful tool empowers financial institutions to efficiently gather and analyze their data throughout the year, enabling seamless and superior SFDR reporting. Don’t miss out on this opportunity to ensure your SFDR reporting is not only effortless but also aligned with the industry’s best practices. Watch the webinar and leverage the JIM’s proven methodology, adopted by a multitude of investors, to achieve outstanding results in your reporting journey. Click on the link below to view the webinar.

In 2022 the JIM Foundation began a project to engage commercial banks from the DFI/MDB/Impact Investor client base who are about to start their carbon accounting and transition planning journey. After a successful pilot, we intend to scale the program to support up to 100 Financial Institutions. In this blog post we will provide an update on the Engagement Program . Welcoming more financial institutions After the pilot, and with the support of DEG , FinDev Canada , FMO , OeEB , and Proparco , the JIM Foundation is now welcoming more commercial banks in emerging markets to the program. We are currently supporting 10 banks and are looking to expand our program in key countries. The JIM Engagement Program is a crucial intervention to make climate finance deliver in emerging economies. We will start with deep knowledge and training for financial institutions (FIs) who in turn will help the JIM Foundation onboard 500 FIs by setting examples and sharing best practices. Learnings from the Program: Insights from Engaging Financial Institutions in Ecuador Our recent local event in Ecuador proved to be a valuable platform for engaging with 10 prominent financial institutions in the country. The session was held in Spanish and hosted by Asobanca , the Ecuadorian banking association, at the Banco Pichincha Headquarters. Through fruitful conversations with these institutions, including sustainability and risk teams from Banco Pichincha, Produbanco, ProCredit, Banco Internacional, Banco Bolivariano, Banco de Machala, Citi , Banco Solidario, Banco Guayaquil, and BGR, as well as officials from the Ministry of Environment, Water and Ecological Transtition we have gained powerful insights into the realities of carbon accounting and its impact on their organizations. “Asobanca’s member banks are committed in the fight against climate change, the preservation of the environment and the strengthening of sustainable financing in Ecuador. Furthermore, the interest of Ecuadorian banks in learning from world class tools such as the JIM, reflects their interest in making efforts to visualize the impacts of their portfolio, and also in developing this process in a transparent, standardized, and easy to understand way” expressed Roberto Romero, Asobanca’s Public Affairs and Communication Director One notable outcome of our discussions was the increased awareness among these financial institutions regarding the role of the sector in achieving net-zero goals, thanks to their commitments to frameworks like PCAF , TCFD and NZBA of UNEP FI. However, we also discovered that several obstacles continue to hinder banks from effectively decarbonizing their portfolios. To assist these institutions in identifying the sectors with the highest emissions, we propose leveraging the JIM. By connecting them with experts in the field, we can initiate the process of decarbonization in these identified sectors. It is essential to focus not only on scope 1 and 2 emissions but also on scope 3 emissions, as they present significant opportunities for decarbonization. Moreover, this approach can attract global investors interested in sustainable investments. To accurately measure progress, we believe providing more granular carbon accounting tools specific to the identified sectors is crucial. However, identifying the sectors is just the beginning; implementing the necessary changes within the organizations presents a real challenge. For example, during discussions with the Agri deal teams of an Ecuadorian bank, it became apparent that cattle-related emissions significantly impacted their portfolio. Despite this knowledge, their short-term plans involved expanding this portfolio. Additionally, they acknowledged that while technologies like alternative feed could reduce emissions, convincing borrowers to adopt them without associated commercial benefits would be difficult. Carbon tax discussions did not gain traction, as it is not yet a mainstream topic. In such situations, collaboration with relevant government entities becomes pivotal. The Ministry of Environment, Water and Ecological Transition (Ministerio del Ambiente, Agua y Transición Ecológica) has developed a suite of tools, including the Carbono Cero program, aimed at addressing carbon accounting issues. This program enables organizations to verify the improvements on environmental performance (such as emissions reduction), leading to tax incentives and improved market positioning. However, like many similar programs worldwide, the assessment and verification process pose a significant bottleneck to accessing these benefits. This is particularly true for Ecuador, where majority of borrowers are SMEs, and having such processes in place is very costly. Lastly there were discussions around climate risk tools, or the assessment of assets and whether they are prepared for the upcoming landscape changes such as drought, floods, etc. We found that Ecuador is already preparing with the “National Plan for Adaptation to Climate Change” announced by the Ministry of Environment, Water and Ecological Transition. Other countries in Latin America have not yet prepared these kind of policies, meaning Ecuador finds itself ahead of some peers on this regard. This topic is currently of great relevance as the latest reports are coming in on warming oceans, and the devastating impact that El Niño is expected to have Ecuadorian coast in a few months’ time. Engaging with these institutions banks has already given us valuable feedback on short-term upgrades we will make in JIM 3.0 (release date Q3-2023), which include upgrades such as updated statistics as well as improved user friendliness (and a full Spanish version of the JIM). Read more about the upgrades here . Longer-term functionality requiring R&D are to be built into JIM 4.0 (2024). Some of the areas identified for expansion for upcoming releases are: Scenario analysis (Transition Risks) Helping JIM members designing their net zero ambitions on setting targets and enabling them to create decarbonization plans. We have identified scenario analysis as a key functionality needed for members to assess potential transition risks and develop more resilient decarbonization strategies. This feature could take into account factors such as market conditions and regulatory frameworks, ensuring that members can develop effective decarbonization plans that are aligned with their overall business objectives. Physical Activity Tool for specific investments data Our goal is to create a comprehensive physical activity tool added to the suite of tools that the JIM could make available which enhances engagement with financial institution investees and facilitates determining actual progress in decarbonization pathways, and help quantify the impact of green or sustainable lines By integrating the ability for members to input physical data such as fuel consumption, electricity consumption, land-use change, the tool will provide more comprehensive and accurate emissions estimates of investments. This new functionality will enable members to create more confident estimates based on actual physical data, allowing financial institutions to better assess the potential risks and financing opportunities of their investments. Ultimately, this will result in more informed decision-making and more effective allocation of resources, helping financial institutions to achieve their sustainability goals. Benchmarking with industry peers In order to further enhance the capabilities of the JIM, we have identified opportunities on development of a benchmarking module. This module will enable financial institutions to benchmark their impact performance against their peers. By providing this valuable benchmarking data, we hope to provide a reference point to the industry. This would be paired with a data collection portal to further streamline benchmarking. Climate & Biodiversity Risk (Physical Risk) While accounting for transition risk, the JIM should also account for physical risk. We are keen to integrate frameworks related to climate risk and biodiversity risk into the JIM, such as TNFD and PBAF . These frameworks are specifically designed to address critical sustainability issues, and by incorporating them into the JIM, we can provide financial institutions with the resources they need to effectively assess their impact over these areas. We remain committed to fostering collaboration with Local Governments and Financial Institutions to capitalize on their expertise and resources. Significant progress has already been achieved, presenting an excellent opportunity to exchange knowledge and best practices and transform them into tangible tools that can be implemented on a broader scale. To accomplish this, we intend to build upon the insights gained from our sessions during local events. By continuously learning from these engagements, we can further enhance our collective efforts in addressing climate change and achieving sustainable outcomes. Stay tuned for more events coming up this year! About the Joint Impact Model Foundation Established in May 2022, the JIM Foundation is a non-profit organization which manages the JIM and creates credible oversight for its development. Its mission is to provide the means to quantify impact aligned with industry standards, contributing to impact harmonization for the financial sector in emerging economies. Its aim is to create an inclusive, aligned, and actionable financial sector that is geared towards impactful investments in sustainable economic development while decarbonizing portfolios.

We are thrilled to announce that the Joint Impact Model (JIM) has reached a new milestone! As of March 2023, we have granted access to the JIM to over 150 institutions, enabling them to estimate financial flows through the economy and its resulting economic, social, and environmental impact. The JIM is a powerful tool that allows users to estimate and report on the contribution of individual institutions to the decarbonization pathways, Just Transition, and EU sustainable finance regulation. Using input data such as outstanding amounts per economic activity from investment portfolios, the Joint Impact Model enables financial institutions to estimate financial flows through the economy and its resulting impacts. It being a collaborative effort between multiple organizations, we have been able to develop a tool that supports decision-making and accountability, while also promoting sustainable development. However, we do not wish to stop the developing now, and the new version of the JIM will be released in Q3 of this year. The upcoming update will improve the existing version through advanced statistics, enhanced granularity, updated interface and increased capacity. Furthermore, new features will be available such user-friendly outputs for easiness of reporting which will include SFDR PAIs. We are excited to see the continued growth of the JIM community and look forward to supporting more institutions as they work towards a more sustainable future. If you are interested in learning more about the JIM or gaining access to the tool, please visit our website or contact us directly.

The Joint Impact Model Foundation, in partnership with leading development financial institutions, multilateral development banks, standards setters and modelling experts, is gearing up to deliver on its mission of contributing to impact reporting harmonization for the financial sector in emerging economies [Sharm el-Sheikh, 11 November 2022] — The Joint Impact Model (JIM) Foundation, via the JIM-PCAF program, will provide technical assistance to 25 financial institutions in 2023, with the ambition of reaching a tipping point of 500 FIs in developing countries by 2030. The milestone announcement was made today by Alex MacGillivray, JIM Foundation Co-Chair, during the COP27 in Egypt. The JIM is a web-based tool which enables banks to quantify their financed emissions (known as Scope 3 category 15). The results align with the Global Standard for GHG accounting and reporting developed by the Partnership for Carbon Accounting Financials (PCAF). As of November 2022, 330 FIs have committed to carbon accounting by joining PCAF. With the support of British International Investment (BII), DEG – the German Development Finance Institution, FinDev Canada (supported by Global Affairs Canada), the Dutch development bank (FMO), and Proparco – the French Development Finance Institution, technical assistance will be accessed by 25 commercial banks across emerging economies where lack of data and resources makes carbon accounting more challenging. To jumpstart carbon accounting and impact reporting in the banking sector in many more countries, participating banks will receive: Access to the online tool Support on compiling a baseline carbon footprint Engagement on risks, opportunities, scenario planning and target setting Networking opportunities with other banks and experts to engage and learn from best practices. By increasing focus on downstream scope 3 emissions and improving the collection of primary data the JIM will be able to refine the model further. Final learnings from the JIM-PCAF program will be made available, as well as the learnings presented at COP27 in Sharm El-Sheikh. “The JIM has been incredibly helpful for deriving insights about our portfolio. By only entering outstanding amount and economic activity, I can get a detailed breakdown of Scope 1,2, and upstream scope 3 and split by CO2 and non-CO2 in seconds! I am looking forward to its further development so that it can cover 100% of our portfolio aligned with the PCAF standard.” – Wilson Ortiz, E&S Development Specialist at Banco Pichincha The JIM-PCAF Program will make an important contribution towards demonstrating the value of portfolio emissions accounting for financial institutions with multiple business objectives. It will increase transparency for stakeholders, help to manage climate-related transition risks, provide a starting point for developing climate-friendly financial products and act as a foundation for devising 1.5 degree aligned transition plans towards net zero. We will start with deep knowledge and training for 25 FIs who in turn will help the JIM Foundation onboard 500 FI’s by setting examples and sharing best practices. About the Joint Impact Model Foundation Established in May 2022, the JIM Foundation is a non-profit FMO spin off which manages the JIM and creates credible oversight for its development. Its mission is to provide the means to quantify impact aligned with industry standards, contributing to impact harmonization for the financial sector in emerging economies. Its aim is to create an inclusive, aligned, and actionable financial sector that is geared towards impactful investments in sustainable economic development while decarbonizing portfolios. Want to know more? Check below or reach out to us at info@jointimpactmodel.org

At the JIM Foundation, our mission is to provide the means to quantify impact aligned with industry standards, contributing to impact harmonization for the financial sector in emerging economies. That is why we partnered with PCAF, which is responsible for setting the Global Standard in carbon accounting for financial institutions. PCAF was launched globally in September 2019 and currently has more than 300 banks and investors have subscribed to the PCAF initiative. Through this partnership, the JIM Foundation is collaborating with development financial institutions (DFIs) and multilateral development banks (MDBs) to provide technical assistance to financial institutions (FIs) operating in emerging economies that want to do carbon accounting, but do not yet have the means to do so . Are you interested in the initiative? Would you like to know more?

The Joint Impact Model Foundation is joining the 2022 edition of the Climate Week NYC by hosting a webinar with the title “Modelling the Just Transition, a journey to net zero in emerging markets.” By joining you will learn about the JIM and its application to a real-life case. Sign up at Modelling the Just Transition, a journey to net zero in emerging markets Tickets, Tue 20 Sep 2022 at 10:00 | Eventbrite .

We are happy to announce that the Joint Impact Model Foundation and British International Investment will co-host an event on November 11th at the COP27 Innovation Zone at Sharm el-Sheikh, Egypt. There will be two back-to-back sessions in a series called: Banking for Net Zero: Practical Tools for Financial Institutions. At COP26 more than 450 firms across 45 countries representing $130 trillion in financial assets pledged to align their portfolios with net zero by 2050. Now, attention is turning to the hard part - how to turn these ambitions into concrete action. This event will showcase frameworks and learnings from two initiatives. First, the Joint Impact Model Foundation (JIM)-Partnership for Carbon Accounting Financials (PCAF) Program , which supports emerging economy banks to use the JIM to model their portfolio emissions and align with the PCAF global standard for GHG accounting. Second, a practitioners guide on transition finance co-developed by academics, leading DFIs and African commercial financial institutions. This will help financial institutions invest to decarbonise parts of the economy that aren’t yet green whilst realising their net zero portfolio ambitions. Session 1 | Modelling Your Portfolio Carbon Footprint: Lessons Learned from Partnerships with Emerging Economy Banks Friday November 11, 2022, 2:25 PM – 3:10 PM EET This session introduces the Joint Impact Model (JIM), which offers an off-the-shelf, robust, and comparable solution for carbon footprinting your portfolio aligned to the Partnership for Carbon Accounting Financials (PCAF) global standard. Our pilot program with emerging economy banks shows that it is highly effective at enabling banks to overcome data availability challenges and get on with planning and executing their net zero transition strategies. Join us to hear more about the tool from the experiences of participants in the JIM-PCAF pilot. Session 2 | Scaling and Accelerating the Deployment of Transition Finance: A Practitioner's Guide Friday November 11, 2022, 3:15 PM – 4:00 PM EET How do we invest to decarbonise parts of the economy that aren’t yet green? Though green finance is well understood, transition finance is more nascent. It is a way of classifying and structuring financing towards activities on the path to net zero, even if these have higher emissions today. Join us as we present and discuss a new practical framework for financial institutions to assess transition finance investments, co-developed by academics, leading DFIs and African commercial financial institutions in the run up to COP27. Please note, a link to the livestream will be shared at a later time. It will also be recorded and sent to those who have signed up. Please reach out to info@jointimpactmodel.org with any questions. If you would like to sign up for the livestream, please register here . Update: We have a few invitations left for those of you that would like to join us in person at Sharm El-Sheikh, Egypt. If you would like an invitation email giulia.debernardini@jointimpactmodel.org

The JIM foundation has been officially launched, striving for an inclusive, aligned, and actionable financial sector that is geared towards impactful investments in sustainable economic development while decarbonizing portfolios. Find out more at news - Launch of new impact model targets accountability in the financial sector - FMO

EDFI has adopted the JIM in its harmonised approaches to how its member institutions will align their financing with the Paris Agreement. Read more at: EDFI adopts harmonised Paris Alignment approach | EDFI