Industry bodies
It often falls to industry bodies and trade associations to monitor the emergence of new social and environmental trends at the early stages of their development and to keep their members informed – before such trends become a central part of the competitive dynamic of the sector. In this respect, they share common interests with SRI investors who often monitor issues at the same stage of development with a view to identifying investable opportunities for SRI funds and keeping their mainstream colleagues informed of industry developments.
Responsible business groups
Sometimes, companies come together in coalitions as ‘Responsible Business Groups’ to explore and promote specific aspects of sustainable or responsible business practice.
There is a natural synergy of interest between these groups (which represent business at its most progressive and collaborative) and SRI (who are investors at their most progressive):
- SRI investors watch Responsible Business Groups with interest to learn from their research, to identify best practice and to preview emerging industry norms.
- Reciprocally, Responsible Business Groups often seek the support of SRI investors to promote the extension of their best practice initiatives and to encourage uptake by their peers.
The SRI industry is not one of the primary stakeholders or communications targets for industry bodies (as their attention is more normally directed towards the political, commercial or civil spheres). However, it can be incrementally useful to them to promote discussion of their ideas and objectives within the investment sphere and to receive reciprocal feedback on the interest of capital markets in their activity.
Industry bodies and SRI communication
The SRI industry is not one of the primary stakeholders or communications targets for industry bodies (as their attention is more normally directed towards the political, commercial or civil spheres). However, it can be incrementally useful to them to promote discussion of their ideas and objectives within the investment sphere and to receive reciprocal feedback on the interest of capital markets in their activity.
Industry bodies can rarely justify the cost of maintaining their own SRI communications programme and therefore need to ensure that the engagement that they do undertake is as efficient and targeted as possible.
Advice on this is contained within our SRI-Dynamics discussion paper:
- Engaging SRI: top tips - (coming soon) which outlines to industry outsiders how to shape and communicate social and environmental news and research in a way that maximises its value to the SRI industry
Industry bodies are likely to use the following services from SRI-CONNECT:
Market Buzz & Research
- Present their research to investors, members and potential members and, by communicating their perspective on emerging trends, to shape investor perceptions from an early stage
- Receive news, research and reports from companies, investors and others – also notifications of discussions, events and blogs – all filtered to their own specific interests
- Search the SRI-CONNECT database for research and reports
Directory, networks & discussion
- Find and filter profiles to identify relevant research providers, contacts at companies, analysts at research providers and experts at other organisations
- Present themselves and their investment-relevant activities clearly to the SRI marketplace
- Discuss issues of mutual interest with investors and analysts
- Organise briefing meetings for investors
- Gauge, via discussion groups, investor perspectives on their activities and research
- Build and manage their own SRI networks via the groups, events and messaging functions
SRI Dynamics discussion papers
- Integrated analysis: approaching a tipping point – which reviews how sustainability issues are being used to identify additional sources of investment risk and opportunity within SRI and ‘mainstream’ investment
- Take control of SRI communications – which guides companies on how to communicate effectively with SRI investors
- “Companies still don’t communicate” – the text of Mike Tyrrell’s contribution to the 2009 Corporate Register’s Awards Debate.
- Engaging SRI: top tips – (coming soon) which outlines to industry outsiders how to shape and communicate social and environmental news and research in a way that maximises its value to the SRI industry
Registration and membership
- These special considerations govern the access of NGOs to SRI-Connect
- XXXXX - MT to write sth about how NGOs can use the site to develop their profile and track progress
===
Build profile, distribute research, share ideas
Industry bodies can:
- Use Market Buzz to raise the profile of their research and share their opinions with investors and analysts (About Market Buzz | Post research & reports)
- Use the Directory to highlight their organisational and individual capabilities and interests (About Directory | Update your organisation's profile | Update your personal profile)
- Advertise events (About Events | All events)
- Monitor the developing profile of their firm and research with sustainable investment industry
- Response to requests for research made via the Research Marketplace
Learn & interact
Industry bodies can:
- Receive research that matches their areas of focus (About Market Buzz | View the latest buzz)
- Learn about the dynamics of the sustainable investment industry (SRI Primer | Ecology of SRI | Trends & opinion)
- Join discussions (All Discussion Groups)
- Make connections & send messages
Other
... and like all members of the network, they can:
- Careers, skills & jobs: Employ others and develop their own skills & careers
- People & networks: Network with, follow and engage with others
Note
These special conditions govern the access of NGOs to SRI-Connect
Individuals 50 of 6,010 results
Organisations 50 of 8,123 results
Buzzes 50 of 13,081 results
Robeco | COP16: Laying the groundwork for nature action
Robeco | COP16: Laying the groundwork for nature action
The 16th International Conference of the Parties on biodiversity (COP16) took place during the past two weeks in Cali, Colombia. Representatives of 196 governments gathered to negotiate implementation and financing for global biodiversity targets. Business and finance were notably present, alongside civil society organizations and academics. Robeco’s climate and biodiversity strategist Lucian Peppelenbos attended the conference and shares his key insights.
Summary
- Nature finance was put at the core of the negotiations
- Building momentum in business approaches to biodiversity
- Good progress made in overcoming the data challenge
Wheb: From Obstacles to Outcomes: Effectiveness in stewardship and engagement
Wheb: From Obstacles to Outcomes: Effectiveness in stewardship and engagement
(https://www.whebgroup.com/assets/files/uploads/20241030-wheb-stewardship-white-paper.pdf)
A practitioner’s perspective
"‘More activity’ appears to have become the dominant narrative in investor stewardship and engagement in recent years. In WHEB’s view, this misses the point. Instead, the focus should be on ‘more
effective’ stewardship and engagement that fulfils its purpose of delivering long-term value for clients."
2DII: Collective investor impact in secondary markets
2DII: Collective investor impact in secondary markets
(https://2degrees-investing.org/resource/collective-investor-impact-in-secondary-markets/)
2DII conducted an extensive literature review of approximately 300 papers to provide an updated overview of what we know about collective investor impact in secondary markets through coordinated price signalling and collaborative engagement.
We provide a detailed technical report with an in-depth analysis of two collective impact mechanisms usable on public (secondary) markets that would not be as effective if done by single investors (even the largest ones): price signalling and engagement. It discusses the narrative underlying the use of those mechanisms and conditions under which they can turn effective to make a positive difference.
Moreover, we developed two summary briefings with the key findings including lists of “impact success factors” we could derive from the literature review and practical recommendations for investors to maximize their impact potential through collective action as well as for managers of coordination devices (ESG labels, ESG indices, proxy advisors, etc.) to improve their offering.
NA100: Company Benchmark 2024
NA100: Company Benchmark 2024
(https://www.natureaction100.org/first-company-benchmark-release/)
Key findings include:
- The majority of companies disclose an ambition: Over two-thirds of companies (68) disclose a commitment to protect nature and two-thirds (46) of those have commitments that extend through company value chains.
- Few companies disclose robust nature-related assessments: Only one company discloses evidence of a comprehensive materiality assessment of nature-related dependencies, impacts, risks, or opportunities.
- A significant number of companies disclose nature targets and plans to implement them: 47 companies disclose targets to avoid or reduce their impact on nature and over three-quarters (37) of these companies also disclose strategies for achieving those goals.
- Companies disclose limited progress towards recognizing and protecting the rights of Indigenous Peoples and local communities: Only 31 companies meet at least one of the five benchmark metrics related to respecting and upholding the rights of Indigenous Peoples and local communities, who play crucial roles in biodiversity conservation, restoration, and stewardship. No company meets all the criteria.
Links to results
GIIN: Sizing the Impact Investing Market 2024
GIIN: Sizing the Impact Investing Market 2024
(https://thegiin.org/publication/research/sizing-the-impact-investing-market-2024/)
The GIIN estimates that over 3,907 organizations currently manage $1.571 trillion USD in impact investing assets under management (AUM) worldwide, representing 21% compound annual growth (CAGR) of the total impact investing market since 2019. This year’s report, Sizing the Impact Investing Market 2024, marks the first time the GIIN has been able to calculate a CAGR for the size of the impact investing market.
Carbon Tracker: Turning Tides (LNG)
Carbon Tracker: Turning Tides (LNG)
(https://carbontracker.org/reports/turning-tides/)
How to make a small fortune? Start with a large one & invest in LNG?
As the energy transition accelerates, the oil and gas industry must contend with a shrinking market for its products. In response, certain companies are shifting the focus of their portfolios gas, and liquefied natural gas (LNG) in particular. The industry’s recent push into LNG has seen a surge in buildouts of new LNG infrastructure, and the global production capacity is expected to increase by c.50% by 2030.
In the face of this massive industry push into LNG, it is imperative for investors and policymakers to assess both the assumptions underlying the putative investment case and the risks involved should they be miscalculated.
The report, Turning Tides: The economic risks of B.C.’s LNG expansion in a changing energy market, examines the dynamics of the LNG market, highlighting uncertain (and, in some markets, falling) future demand and the likely oversupply of LNG by the end of this decade.
Klement on Investing: Energising energy producers
Klement on Investing: Energising energy producers
(https://klementoninvesting.substack.com/p/energising-energy-producers)
Competition is good for business. It forces companies to become more efficient and more productive and it reduces profit margins, often leading to lower prices for consumers. But sometimes it requires outsiders to break into an industry and ‘disrupt’ it to rejuvenate a staid industry. And it seems one industry where this is happening right now is one of the most boring ones: electric utilities.
Utility companies are famously boring. They often have low or no growth opportunities, and operate in stable markets, some of which are heavily regulated and there is little incentive to innovate or increase efficiency. In the past, this often led to underinvestment in infrastructure and high prices for consumers as utility companies were more concerned with paying high dividends to their owners than serving their customers well.
For decades now, the response of politicians has been to deregulate electricity and water markets so that prices fluctuate, and different providers compete with each other to produce at the lowest cost possible. Yet, all too often the result was simply an even bigger underinvestment in ageing infrastructure and even poorer customer service as margins for utility companies declined but owners still insisted on their fat dividends (if you live in the UK, just think of the disaster that are our water utilities).
Enter an unlikely disruptor...
Creative Investment Research: October 2024 Unemployment: No Meaningful Change
Creative Investment Research: October 2024 Unemployment: No Meaningful Change
(https://www.impactinvesting.online/2024/11/october-2024-unemployment-no-meaningful.html)
Creative Investment Research: October 2024 Unemployment: No Meaningful Change
The October 2024 unemployment data by race and ethnicity shows a stable picture when analyzed for seasonal adjustments and overall trends
Creative Investment Research: KAMALANOMICS
Creative Investment Research: KAMALANOMICS
(https://www.impactinvesting.online/2024/08/kamalanomics-opportunity-economy.html)
Creative Investment Research: KAMALANOMICS
Kamalanomics: Home and Health - see link below
Schroders: Q3 2024 Sustainable Investment Report
Schroders: Q3 2024 Sustainable Investment Report
(https://publications.schroders.com/view/147216462/)
"In our third quarterly report, we reflect on the sustainability trends that shaped the 2024 proxy voting season and provide a case study on our engagement with Unilever. Our latest research uncovers the risks and opportunities presented by increasing global temperatures which have the ability to impact the present. We also share our latest insights on the spectrum of opportunities surrounding natural capital and biodiversity within private markets, as well as how salient human rights and financially material risks intersect in an increasingly turbulent world."
Generation IM: Sustainability Trends Report 2024
Generation IM: Sustainability Trends Report 2024
(https://www.generationim.com/our-thinking/sustainability-trends/sustainability-trends-report-2024/)
The Sustainability Trends Report is Generation’s flagship annual publication which seeks to answer the question of where the world stands in the transition to a low-emissions economy.
This year’s report is the eighth annual edition and takes stock of the climate and environmental crises at a global scale.
Last year’s report was buoyed by the passage of the Inflation Reduction Act in the United States and by European success at countering the energy crisis manufactured by Vladimir Putin.
This year, we feel compelled to write in detail about the difficulties still confronting the world as it tries to bring emissions down.
Carmignac: The inflated cost of the energy transition
Carmignac: The inflated cost of the energy transition
(https://www.carmignac.fr/en_GB/articles/the-inflated-cost-of-the-energy-transition-2854-10219)
Attempts to limit global temperature rises by 1.5° could add 1.6 percentage points to inflation each year over the next decade, according to Carmignac research. But the alternative of permanent climate disruption is far costlier.
Lloyd McAllister, head of sustainable investment, Raphaël Gallardo, chief economist, and Michel Wiskirski, commodities specialist, explore the true cost of the energy transition over the next decade.
Climate change is inherently inflationary. Rising average temperatures and their seasonal fluctuations, natural disasters and enduring environmental changes will have negative effects on the supply of goods and labour and positive effects on local demand.
Contrary to the unmitigated scenario, the inflationary effects of the energy transition are both more predictable and time-limited. And its social consequences are far easier for public authorities to manage.
Boeing: 2024 Sustainability & Social Impact Report
Boeing: 2024 Sustainability & Social Impact Report
Boeing: 2024 Sustainability & Social Impact Report
Insight Investment: Impact investing in emerging markets – making a difference while seeking returns
Insight Investment: Impact investing in emerging markets – making a difference while seeking returns
"Investors should not be concerned whether the emerging markets can offer the breath and depth of positive impact opportunities that are found in other areas of fixed income. Impact investing is available across the wide emerging markets universe, where a diverse array of issues can offer investors the ability to support impact to the benefit of people, the planet, and prosperity in general.
We look at the key feature and attractions within the rapidly growing emerging market impact universe and what it has achieved in recent years compared to other related areas of the fixed income world."
Capital Group: Energy transition: Sidelined, stalled or stepping on the gas?
Capital Group: Energy transition: Sidelined, stalled or stepping on the gas?
KEY TAKEAWAYS
"- Tensions between energy-transition and energy-security goals, costs and shifting demand are reshaping prospects in many industries.
- Massive green stimulus, changing regulations and the potential for lower interest rates are creating powerful tailwinds.
- We see compelling long-term opportunities in autos, cooling for data centers, heat pumps, renewable energy and power grids."
Capital Group: The Rise of AI and ESG
Capital Group: The Rise of AI and ESG
(https://www.capitalgroup.com/institutions/fr/en/insights/articles/the-rise-of-ai-and-esg.html)
"Artificial intelligence (AI) is touching almost every corner of the global economy. But what are the implications for environmental, social and governance (ESG) issues?
On the one hand, AI brings powerful potential to tackle the myriad of ESG data challenges. On the other hand, ESG risks associated with the rise of AI, such as data protection, labour rights, and energy and water consumption are emerging. What do investors plan to do about AI?
The impact of AI on ESG issues is just one of the thought-provoking issues we explore in our latest Global ESG Study."
GIB AM: Taking the pulse on cardiovascular health innovation
GIB AM: Taking the pulse on cardiovascular health innovation
(https://gibam.com/articles/taking-the-pulse-on-cardiovascular-health-innovation)
Executive Summary
- Theme-driven investing involves identifying long-term sources of growth and the companies best positioned to capture the potential profits.
- The GIB AM Sustainable World Strategy has a specific Cardiovascular Health sub-theme, focused on investing in companies that are improving access to life-saving treatments and promoting global health equity.
- A promising new treatment, Pulsed Field Ablation (PFA), has shown great potential in transforming outcomes of Atrial Fibrillation (AF), an increasingly widespread cardiovascular condition.
- Forecasts suggest that the electrophysiology market will grow to $11 billion and that PFA’s share of the market will expand from just over 5% to 60%-80%. (1)
- Boston Scientific (BSX NY), a core portfolio holding, produces one of just two FDA approved.
- PFA devices, and is therefore well positioned to take advantage of the increasing adoption of this technology.
Franklin Templeton: Deep Waves: Longevity—the undertow to the demographic wave
Franklin Templeton: Deep Waves: Longevity—the undertow to the demographic wave
"In our “Deep Water Waves” publication, we identified several powerful, connected and long-duration factors that will have a significant impact on investment returns over the next decades. One of these is the Demographic Wave. Its impact is a distinct aging of the populations of some countries and high fertility rates and young populations in others. The countries that have driven global economic growth over the last generation are aging fast, creating productivity challenges.
This paper is a derivative of “The Demographic Wave” and identifies the economic, political and investment implications for countries with lower fertility and growing life expectancy. The research that underpins this paper uses the analysis of the structural positioning of 110 countries (covered by our proprietary Country Risk Framework) to outline potential policy direction and the signposts for investors to watch for. Growing demand for credit and a more constrained access to financing will play defining roles, along with the impact of geoeconomics and climate change in the next 20 years.
Stewart Investors: A positive case for sustainable investment
Stewart Investors: A positive case for sustainable investment
A few years ago, sustainable investment was much in favour. The tide turned decisively in 2022. Inflation took hold in many economies. Monetary policy became restrictive. Europe was plunged into an energy crisis following Russia’s invasion of Ukraine. Capital rotated into traditional energy and resources companies, as well as banks, and from growth into value stocks. The performance of many sustainability funds turned south. Sentiment towards ESG (environmental, social and governance) and sustainable investment turned sour.
Newton IM: 2024 voting season report
Newton IM: 2024 voting season report
(https://www.newtonim.com/uk-institutional/insights/articles/2024-voting-season-report/)
Newton IM: 2024 voting season report
"Our 2024 voting season report presents the activities we have undertaken on behalf of our clients at annual general meetings (AGMs) and extraordinary general meetings (EGMs) over the course of this year’s voting season. We provide a view into key themes arising which we believe can be relevant to long-term value and explain how we approached our analysis."
Profundo: Global Coal Exit List 2024
Profundo: Global Coal Exit List 2024
(https://www.profundo.nl/en/projects/global-coal-exit-list-2024)
Two weeks before the world’s governments meet for COP29 in Baku, urgewald and 51 NGO partners released the 2024 “Global Coal Exit List” (GCEL), a public database of 1,579 companies operating along the thermal coal value chain.
95% of the Coal Industry Still Has No Phase-Out Plan. Although we are already perilously close to overshooting the 1.5°C limit, the overwhelming majority of the world’s coal companies still refuse to transition.
Out of the 1,579 parent companies and 1,204 subsidiaries on GCEL, only 124 companies – less than 5% of the total – have announced a coal exit date. Many of these coal exit dates are, however, far too late. Profundo conducted financial research for the list.
Redwheel: Clearing the air on hydrogen production & supply
Redwheel: Clearing the air on hydrogen production & supply
Redwheel: Clearing the air on hydrogen production & supply
Executive Summary
– Hydrogen produces no emissions when used and is essential for achieving the IEA’s Net Zero by 2050 (IEA NZE) roadmap. Expanding its use across sectors that do not currently use it is crucial.
– For hydrogen production to decarbonise, there needs to be a shift from ‘grey’ hydrogen, which has high lifecycle CO2 emissions.
– There are two main options: ‘blue’ hydrogen produced from natural gas with CO2 emissions captured and stored, and ‘green’ hydrogen, produced from water using electrolysis powered by renewables.
– The EU is leading policy support for green hydrogen, with stringent regulations, ambitious targets and financing mechanisms. Thus, EU policy is likely to drive the global hydrogen market in the near- to medium-term
– Similarly, the USA also has strong production targets, covering green and blue hydrogen, with subsidies available under the Inflation Reduction Act
– Although green hydrogen costs are expected to outcompete grey and blue hydrogen by 2030 in more advanced markets, there is, globally, minimal policy on driving hydrogen demand
– Where feasible, transporting hydrogen by pipeline is usually the cheapest and least CO2-intensive option – particularly if using repurposed natural gas infrastructure.
– Announced green hydrogen production outside Europe is likely destined for export as ammonia. However, very little of this production capacity is committed due to uncertain demand, driven by the lack of demand-side policy support.
– Announcements may firm up as policy frameworks crystalise, but some currently promoted sources of significant hydrogen demand may fall away due to competition with other decarbonisation options (e.g., electrification).
Fidelity International: A practitioner's guide to investing in the energy transition (podcast)
Fidelity International: A practitioner's guide to investing in the energy transition (podcast)
When it comes to decarbonising the world - the scale of the challenge can feel overwhelming. In this episode, Katie Constance, Head of Sustainability for European distribution, is joined by Gabriel Wilson-Otto, Head of Sustainable Investing Strategy, and Portfolio Managers Kris Atkinson and James Richards to discuss the practical steps to consider when investing in the energy transition, where the risks lie, and where to look for opportunities.
Global Canopy/Forest 500: The human rights blindspot in deforestation action
Global Canopy/Forest 500: The human rights blindspot in deforestation action
(https://forest500.org/publications/the-human-rights-blindspot-in-deforestation-action/)
Key findings
Testing for FPIC is a critical way companies must engage with Indigenous Peoples and local communities before making any new acquisitions or developments.
- 40% of Forest 500 companies have a publicly available FPIC commitment in place for at least one commodity. This has more than doubled since 2014 (16%).
- 71% of those companies with at least one FPIC commitment are transparently publishing evidence of their efforts to implement that commitment through their supply chains.
- 46% of financial institutions have published a policy encouraging or requiring their clients/holdings to test for FPIC of Indigenous Peoples and of local communities, compared to just 13% in 2014.
Anthropocene FII: Sovereigns: climate performance and the cost of capital
Anthropocene FII: Sovereigns: climate performance and the cost of capital
"The credit risk profiles of sovereign issuers are integral to the low-carbon transition. Sovereigns with high creditworthiness have a lower cost-of-capital, and can therefore borrow more cheaply to invest in climate-friendly projects and infrastructure.
Climate risks have the potential to undermine sovereign creditworthiness, however. Physical risks can displace populations, render certain areas uninsurable, and damage fixed assets. Transition risks, meanwhile, can disrupt industries and make asset prices more volatile.
In this research note, we uncover how climate factors drive sovereign bond yields using a comprehensive regression model applied to a dataset of over 2,600 instruments."
Aviva Investors: How a holistic approach to investment stewardship can enhance client outcomes
Aviva Investors: How a holistic approach to investment stewardship can enhance client outcomes
(https://www.avivainvestors.com/en-gb/views/aiq-investment-thinking/2024/09/investment-stewardship/)
Read this article to understand:
- How holistic stewardship works
- How engagement can be carried out at both the “micro” and “macro” levels
- How collaborating with stakeholders across sectors can help address obstacles to progress on climate change and other issues
Aviva Investors: Navigating nature - Opportunities for the investor of tomorrow
Aviva Investors: Navigating nature - Opportunities for the investor of tomorrow
Nature is so important for everyone, everywhere, and for everything we do.
As of last year, six of nine “planetary boundaries” have now been transgressed, increasing the risk of irreversible environmental damage. Global wildlife populations have declined by an average 69 per cent in the past 50 years and around one million animal and plant species are now threatened with extinction, many within decades.1,2,3 The scale of the problem is daunting.
So, why should this issue matter to investors? As a global asset manager, we at Aviva Investors recognise the significant investment risks and opportunities that derive from our portfolios’ interactions with nature. Understanding potential exposure to nature-related risks, and addressing them, is crucial to safeguarding the long-term value of investments.
Parnassus: Annual Sustainability & Stewardship Report 2024
Parnassus: Annual Sustainability & Stewardship Report 2024
Parnassus: Annual Sustainability & Stewardship Report 2024
First Sentier MUFG: Modern Slavery & Remediation – An Investor’s Guide
First Sentier MUFG: Modern Slavery & Remediation – An Investor’s Guide
First Sentier MUFG: Modern Slavery & Remediation – An Investor’s Guide
Modern slavery impacts every country, region, company and supply chain in the world, with almost 50 million people estimated to be living in modern slavery globally. As business and investors may be exposed to modern slavery and forced labour through their operations or supply chains, they are increasingly expected to assess and address modern slavery risks and provide or enable remediation of modern slavery cases in their operations and investments. Investors can leverage their role as stewards of capital to enable and encourage best practice in providing redress and resolution for adverse human rights impacts.
SSF: A Stocktake of Swiss Impact Investing
SSF: A Stocktake of Swiss Impact Investing
(https://www.sustainablefinance.ch/stream/en/nl/links.pdf?linkid=5922&uid=%40f6a5e38554&nlid=308)
This study, published in collaboration with Tameo Impact Fund Solutions (Tameo), shows the growing importance of impact investments in the Swiss financial centre.
Their volume now amounts to CHF 180 billion or over 10 per cent of the entire universe for sustainable investments. With regard to investments in private markets in developing and emerging countries - a particularly effective form of impact investing - the Swiss financial centre is even among the top 3 globally.
Millani: 8th Annual ESG Disclosure Study
Millani: 8th Annual ESG Disclosure Study
"Since 2017, Millani has conducted an annual review to assess and understand the environmental, social and governance (ESG) reporting landscape in Canada, identify trends and provide insights and context to complement our various thought leadership publications.
An analysis was conducted of the most recent ESG disclosures of the 226 constituents of the S&P/TSX Composite Index. In 2024, the use of double materiality assessments continues to grow in Canada, with 32% of constituents now using this approach, up from 19% last year.
We believe this trend is driven by increasingly sophisticated disclosure regulations and changing market expectations regarding access to capital."
WHEB: EVs are dead? - Long live EVs!
WHEB: EVs are dead? - Long live EVs!
(https://tinyurl.com/3pkne84f)
WHEB: EVs are dead? - Long live EVs!
There has been a lot of doom and gloom in the media about the prospects for battery electric vehicle (EV) growth and adoption this year. After the euphoria of the prior few years, what happened? Are EVs really on a long-term slow burner now?
In this article, Ben Kluftinger explains why, despite current bumps in the road, we still believe the future of driving to be electric.
WHEB: From obstacles to outcomes: Enhancing effectiveness in stewardship and engagement
WHEB: From obstacles to outcomes: Enhancing effectiveness in stewardship and engagement
(https://tinyurl.com/mtnh2mms)
More activity’ appears to have become the dominant narrative in investor stewardship and engagement in recent years as the practice has entered the mainstream. In WHEB’s view, this misses the point. Instead, there should be a laser focus on ‘more effective’ stewardship and engagement that fulfils its purpose in delivering long-term value for clients.
In this article Rachael Monteiro outlines the key findings from the forthcoming stewardship whitepaper.
WHEB: Passing the ‘peak pain’ of SDR and what this means for clients
WHEB: Passing the ‘peak pain’ of SDR and what this means for clients
(https://tinyurl.com/yc5fhm4h)
September’s back-to-school feel was particularly pronounced this year as delegates gathered at the traditional post summer conference season. Returning from their holidays, participants were keen to hear about the progress (or lack thereof) – with the FCA’s Sustainability Disclosure Requirements (SDR). At the time of writing, the FP WHEB Sustainability Impact fund is still the only listed equity fund to feature the Sustainability Impact logo. This status has meant that WHEB has been in particularly high demand as a presenter at these conferences.
In this article Seb Beloe discusses our experience with the regime and our ambitions for the labels.
Morningstar: Global Sustainable Fund Flows: Q3 2024 in Review
Morningstar: Global Sustainable Fund Flows: Q3 2024 in Review
The flow recovery continues but remains timid
Key Takeaways
- In the third quarter of 2024, the global universe of sustainable open-end and exchange-traded funds attracted an estimated USD 10.4 billion of net new money, a notable uptick from the restated inflows of USD 6.3 billion in the second quarter.
- European sustainable funds garnered almost USD 10.3 billion, slightly down from the restated USD 11.1 billion in the previous quarter.
...
- Global product development continued on a downward trajectory with 57 new sustainable fund launches in the third quarter. While this number is likely to be revised upward, it confirms the normalization of product development activity in this space.
- Meanwhile, fund closing and rebranding activity continued. In Europe, 102 sustainable funds closed or merged in the third quarter, bringing the total to 349 so far this year.
Robeco: Forever and a day: Phasing out dangerous chemicals
Robeco: Forever and a day: Phasing out dangerous chemicals
(https://www.robeco.com/en-int/insights/2024/10/forever-and-a-day-phasing-out-dangerous-chemicals)
The launch of an engagement theme to phase out ‘forever chemicals’ leads the Robeco Active Ownership team’s report on its work in the third quarter.
Summary
- Engagement theme begins on ‘Hazardous chemicals’, focusing on PFAS
- Update on sovereign engagement in Australia on climate policies
- Reports on ‘Controversial behavior’ theme and proxy voting season
RFI Foundation: OIC banks can improve their climate impact by learning from the challenges of global banks
RFI Foundation: OIC banks can improve their climate impact by learning from the challenges of global banks
RFI Foundation: OIC banks can improve their climate impact by learning from the challenges of global banks
The pace of announcements of responsible finance targets—especially about climate—has continued to grow. Concerns about greenwashing have been consistent and have begun to be incorporated into regulation. This pressure from stakeholders, including regulators, has contributed to a reduction in the easiest forms to identify. An analysis by RepRisk has found that, by their metric, greenwashing risk for companies has fallen for the first time since 2019.
Greenwashing includes companies producing convincing but misleading statistics, targets or descriptions to describe their environmental impacts. One place where the greenwashing risk is likely to be easiest to hide is in financial institutions’ targets around climate mitigation and the Just Transition. Because climate change is a problem of collective action, it can be easy to shift blame because no single country, company or financial institution can solve the problem.
Financial institutions that have set or announced targets, and are working on the process of baselining their current emissions, will have to prioritize where they put their focus. A recent update by the Transition Pathways Initiative (TPI) on progress on transition in the banking system has provided useful insights.
The report focuses on banks with a longer track record of target setting, measurement and transition planning and should be interpreted accordingly for the purposes of OIC-based financial institutions and those in Islamic finance. One challenge the larger banks face is that their climate targets and decarbonization pathways are often too narrowly targeted for one or a few sectors.
The way that banks approach target setting is often focused on high direct emitters like banking for the oil & gas and electricity generation sectors. These are often clearly material, especially for global banks, but national or regional banks that operate in most OIC markets may have different sectors that carry the most relevance.
The determination of materiality that banks use to determine relevance is often geared around emissions and credit exposure in the banking book. The TPI specifically called out the lack of disclosures related to capital market activities (e.g., underwriting fixed income or equity issuance) as well as opacity about the materiality of different sectors from a revenue perspective.
Even for the largest banks, this has been an issue, TPI summarizes:
“Of the banks providing sufficient information, we estimate that targets cover on average only 22% of their total revenue. Only seven banks include capital market activities in their sectoral targets, meaning that significant portions of banks’ businesses are not covered.”
One of the challenges that banks often face when thinking about implementing policies on decarbonization targets is that it is conceptually easier to evaluate responsibility for financed emissions from the financing provided to high-emission companies. If a company has $1 billion of equity and $200 million of bank financing, and directly emits 1.2 MtCO2e per year, then a bank that provided $50 million of that financing would have financed emissions of 50,000 tCO2..
However, the same methodologies are more difficult to apply if the bank is involved as just one member underwriting a quarter of a $200 million debt or equity underwriting that is subscribed by other investors. Rather than providing financing directly, where it can more readily link its financing activity to future emissions, capital markets activity facilitates other investors who would be expected to account for the financed emissions.
But the investment bank could have applied the same effort to place equity or debt for lower-emission companies, or for companies promoting climate solutions. The methodologies for accounting and reporting these data are not as well developed, which leads to gaps in the data that are reported and what targets are set.
Similarly, a financial institution may report financed emissions only including its customer’s direct emissions and emissions related to their electricity use. This is the approach of the GHG Protocol, but it omits a company’s value chain and implicitly favours companies that are not vertically integrated (where more emissions would be counted as direct (Scope 1) emissions.) Decisions about corporate structure, or which entity in a wider group receives financing, can impact the financed emissions that are produced, even if the real-world emissions are not affected.
The lesson in these discussions about technical points related to financed or facilitated emissions is that disclosure alone isn’t going to provide an antidote to future concerns about greenwashing. Even a precise, accurate and validated measurement and reporting of a subset of financed emissions could omit enough that it becomes misleading when viewed in relation to the bank’s entire range of activities.
The point for banks to take away in planning their implementation is to not be too reliant on a single metric in their approach to decarbonizing their portfolios or rely on one measurement framework – even if prescribed in regulation – for understanding their climate exposure. The point is not just to disclose or set targets, but to take actions that produce real economy changes.
For example, a disclosure regulation could set the expectation for financed emissions reporting based on the GHG protocol. Calculating the relevant emissions in line with the regulation could highlight a specific set of activities that the bank should focus on in its decarbonization efforts. Yet, if a broader metric like PCAF were applied, this might highlight a different set of priorities based on including value chain emissions and facilitated emissions.
Other metrics have been proposed and supported, including a focus on financing extended for capital expenditures, which will influence longer-term (future) emissions trends. In this vein, Reclaim Finance has released a report that discusses in more detail the issues with bank decarbonization target-setting to date. Reclaim Finance along with the Institute of International Finance has also highlighted the Energy Supply Financing Ratio (ESF) as a useful metric.
The ESF compares the ratio of a financial institution’s exposure to fossil fuel-generated electricity to renewable energy financing. It is based on a finding from the International Energy Agency (IEA) that by 2030 there will need to be $6 of financing for every $1 of fossil fuel investment. Most banks are far from that target but can show progress by shifting the ratio in ways that are harder to exaggerate than other metrics sensitive to portfolio composition.
At the end of the day, the progress that matters is the decarbonization of the economy in a way that will increase the likelihood of staying under 1.5˚ C of warming while promoting a Just Transition away from current emissions sources. Showing progress on a single metric, or having one type of data calculated in the most precise way possible, won’t cover up for failure to have a real-world impact.
Investors and other stakeholders are already on the lookout for cherry-picked data, and it is critical for banks to challenge the data they are reporting or will be required to report when it comes to actually making decisions. The required types of data for disclosure can be useful, but always need to be challenged in the context of a bank’s operations and the economy in which it operates to ensure that another view of a bank’s actions won’t produce cries of ‘greenwashing’.
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CDC: Sustainability Bond Report 2023
CDC: Sustainability Bond Report 2023
(https://www.caissedesdepots.fr/en/you-are-investor/esg-library)
CDC's latest report covers key areas of their activities, including:
- Mission
- Methodology
- Projects and impacts
Jobs 50 of 199 results
JobPost: Tesco: Head of Investor Relations - ESG (CloseDate: 07/11/2024)
JobPost: Tesco: Head of Investor Relations - ESG (CloseDate: 07/11/2024)
(https://www.tesco-careers.com/jobdetails/917223/)
"Our Investor Relations team manages the relationship and communications between Tesco and its shareholders and the wider investment community. It is a high-profile team that supports the CEO, CFO and Group Investor Relations Director to communicate the performance of the Tesco Group.
You will be primarily responsible for communicating our ESG objectives and progress, fielding questions from analysts and investors on a broad range of topics, as well as supporting senior management in their interactions with investors. The role will require you to build positive relationships with key colleagues, familiarise yourself with Tesco’s extensive ESG disclosure, and establish relationships with investors and analysts."
Please note this role is a fixed term contract for 12 months
Full details via the link below
JobPost: BlackRock: VP, Sustainability Platform Strategy & Implementation (London | Close Unknown)
JobPost: BlackRock: VP, Sustainability Platform Strategy & Implementation (London | Close Unknown)
JobPost: BlackRock: VP, Sustainability Platform Strategy & Implementation (London | Close Unknown)
JobPost: Jupiter Asset Management Ltd - ESG Analyst (12 month FTC)(London | CloseDate: Unknown)
JobPost: Jupiter Asset Management Ltd - ESG Analyst (12 month FTC)(London | CloseDate: Unknown)
(https://www.efinancialcareers.co.uk/jobs-UK-London-ESG_Analyst_12_month_FTC.id22026009)
JobPost: Jupiter Asset Management Ltd - ESG Analyst (12 month FTC)(London | CloseDate: Unknown)
JobPost: The Schmidt Family Foundation - Portfolio Manager, Impact Investing (San Francisco | CloseDate: 15th November)
JobPost: The Schmidt Family Foundation - Portfolio Manager, Impact Investing (San Francisco | CloseDate: 15th November)
(https://jobs.thegiin.org/job/6853/portfolio-manager,-impact-investing/)
JobPost: U.S. International Development Finance Corporation (DFC) - Managing Director, Environmental & Social Risk Assessment (Health & Agribusiness) (Washington | CloseDate: 5th November)
JobPost: U.S. International Development Finance Corporation (DFC) - Managing Director, Environmental & Social Risk Assessment (Health & Agribusiness) (Washington | CloseDate: 5th November)
JobPost: U.S. International Development Finance Corporation (DFC) - Managing Director, Environmental & Social Risk Assessment (Health & Agribusiness) (Washington | CloseDate: 5th November)
JobPost: S&P Global - Reporter, Energy Transition Metals (Washington | CloseDate: Unknown)
JobPost: S&P Global - Reporter, Energy Transition Metals (Washington | CloseDate: Unknown)
(https://careers.spglobal.com/jobs/308884?lang=en-us)
JobPost: S&P Global - Reporter, Energy Transition Metals (Washington | CloseDate: Unknown)
JobPost: ISS - Sustainability & Climate Sales Specialist (Rockville/Washington | CloseDate: Unknown)
JobPost: ISS - Sustainability & Climate Sales Specialist (Rockville/Washington | CloseDate: Unknown)
JobPost: ISS - Sustainability & Climate Sales Specialist (Rockville/Washington | CloseDate: Unknown)
JobPost: ESG Implementation & Strategy Manager [Distribution] (London | CloseDate: Unknown)
JobPost: ESG Implementation & Strategy Manager [Distribution] (London | CloseDate: Unknown)
(https://www.masonblake.com/jobs/esg-implementation-strategy-manager-distribution-2/)
JobPost: ESG Implementation & Strategy Manager [Distribution] (London | CloseDate: Unknown)
JobPost: PRI - Manager Academy Operations (Investor Education) - 9 Month Fixed Term Contract (London | Closing: 8:00pm, 13th Oct 2024 BST)
JobPost: PRI - Manager Academy Operations (Investor Education) - 9 Month Fixed Term Contract (London | Closing: 8:00pm, 13th Oct 2024 BST)
(https://app.beapplied.com/apply/ijwkpb12pr)
Employment Type Contract Please note, where PRI has an office there is an expectation to work a minimum of 2 days per week
Location Hybrid · London, UK
Seniority Mid-level
Closing: 8:00pm, 13th Oct 2024 BST
JobPost: ESG & Impact Associate (London | CloseDate: Unknown)
JobPost: ESG & Impact Associate (London | CloseDate: Unknown)
(https://www.acre.com/job/esg-and-impact-associate)