IPCC - Intergovernmental Panel on Climate Change
- EcoVision
- Nov 8
- 2 min read
Updated: Nov 11
The IPCC stands for the Intergovernmental Panel on Climate Change, have around 195 countries as member.
The IPCC is a scientific body established in 1988 by:
the United Nations Environment Programme (UNEP), and
the World Meteorological Organization (WMO).
It was created to provide objective, scientific assessments about:
climate change,
its causes,
its potential environmental and socio-economic impacts, and
possible adaptation and mitigation strategies.
📘 What It Does
The IPCC does not conduct original research — instead, it:
Reviews the latest scientific studies on climate change.
Summarizes the findings in comprehensive reports.
Advises policymakers around the world based on scientific consensus.
These reports are often the scientific foundation for international agreements (like the Paris Agreement).
🔍 Key Reports
The IPCC releases major Assessment Reports (ARs) every few years:
AR6 (Sixth Assessment Report) – Published between 2021 and 2023
Concluded that human influence is “unequivocal” in warming the planet.
AR7 – Currently in progress, expected around 2027.
They also issue:
Special Reports (like on 1.5 °C warming, ocean and cryosphere, etc.)
Methodology Reports (for greenhouse gas inventories).
The link between IPCC and ESG is primarily through the “E” — Environmental pillar, but it also influences the “S” and “G.”
Here’s how they connect:
1. Scientific Foundation for ESG Environmental Metrics
IPCC reports form the scientific baseline that ESG frameworks rely on — especially for carbon emissions measurement, climate risk modeling, and transition pathways.
Standards such as the TCFD (Task Force on Climate-related Financial Disclosures), ISSB (International Sustainability Standards Board), and EU CSRD (Corporate Sustainability Reporting Directive) use IPCC climate scenarios (e.g., 1.5 °C, 2 °C, 4 °C pathways).
Companies align their net-zero strategies and climate disclosures with IPCC data.
2. Risk Assessment and Scenario Planning
ESG ratings and investor disclosures often require firms to test how their business performs under IPCC Representative Concentration Pathways (RCPs) or Shared Socioeconomic Pathways (SSPs).
This connects climate science directly to financial risk assessment — especially for insurers, banks, and asset managers.
3. Policy Influence
National policies on climate mitigation, adaptation, and carbon pricing (derived from IPCC findings) create the regulatory environment for ESG compliance.
For example, IPCC evidence underpins the UK Climate Change Act, Paris Agreement, and EU Green Deal — all key drivers of corporate ESG policy.
4. Social and Governance Factors
While IPCC focuses on science, its reports highlight:
Human impacts (on communities, health, and equity).
The need for governance frameworks that ensure transparent and ethical climate response — core to ESG’s “S” and “G”.
🧠 Why It Matters
Governments, organizations, and businesses use IPCC findings to:
Set climate targets (e.g., net zero goals).
Design ESG and sustainability policies.
Support climate adaptation and finance planning.
References & additional readings
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