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Michel van den Berg

Supporting companies to navigate climate change, Sustainability and ESG Integration | Strategy & Implementation | Net Zero and target setting | Sustainable Finance and Investing | Climate Risk | Disclosure and Reporting

Michel van den Berg is the owner of Green Mountain Climate Consultancy, where he specializes in helping companies navigate climate change, sustainability, and ESG (Environmental, Social, and Governance) integration. His work focuses on strategy and implementation aimed at achieving net-zero targets and other sustainability goals.1

Prior to founding his consultancy, van den Berg gained significant experience in the financial sector, having worked with organizations like Rabobank and ING. His roles involved leading initiatives that aligned financial practices with climate change strategies.234

He is passionate about sustainability and is actively engaged in discussions surrounding climate action and corporate responsibility on platforms like LinkedIn.2

Highlights

Jul 8 · linkedin

Interesting article about the struggles of small scale, young farmers to make the transition work for them, being stuck in the value chain that is dominated by powerful value chain players that have a vested interest to keep things as they are. Politics will be challenged to provide the answers before the weakest link in the chain breaks

Oct 9 · linkedin

In 2022, the European Insurance and Occupational Pensions Authority (EIOPA) coordinated its triannual stress test for the European pension fund sector. The 2022 IORP stress test (the European Institutions for Occupational Retirement Provision stress test) was EIOPA’s first climate stress test for IORPs and consisted of three parts: first, participating IORPs assessed the effects on their financial positions of a “disorderly climate transition” scenario. Second, in addition to the above mandatory part, the stress test provided for the option to develop an alternative approach to the mandatory stress test. Five Dutch IORPs performed this voluntary test using a jointly developed common approach. Third, the stress test also assessed IORP’s ESG investment policy with a qualitative questionnaire.

With the 2022 stress test, EIOPA’s goal was to assess IORPs’ exposure to environmental risks by estimating the impact of a typical transition-risk- focused climate change scenario on IORPs’ financial position. EIOPA assessed the impact of a sudden, disorderly transition scenario resulting from a delayed implementation of climate change policy measures by governments, resulting in a sharp rise of carbon emission prices.

The design of the above mandatory element of the climate stress test involved applying different asset shocks to assets held in different economic industries: the assumed “disorderly climate transition” scenario affects various industries in different ways.

Five participating Dutch IORPs felt that the stress test design defined these industry-dependent shocks at a significantly less granular level than the level at which these IORPs take investment decisions regarding climate risk.

The voluntary part of the stress test that EIOPA included in the overall design allowed these Dutch IORPs to apply a more granular approach in order to gain a more meaningful insight in the transition risks of their specific investment portfolios.  This more granular methodology involved calculating unique shocks for each of their equity and corporate credit investments in the energy sector based on a ‘fossil-fuel intensity’ metric determined for each asset based on a set of rules.  The results of the voluntary part of the stress test by a number of Dutch IORPs suggest that a stress test with more granularity than the mandatory part of the stress test can provide additional insight. Both the five Dutch IORPs involved and DNB concluded that the voluntary stress test was a valuable learning exercise that yielded additional insights into the climate sensitivity of the investments of these IORPs.

Related Questions

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Michel van den Berg
Michel van den Berg, photo 1
Michel van den Berg, photo 2
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Location

Hilversum, North Holland, Netherlands