SRI agencies
For the past 20 years, SRI agencies have been the sole specialist providers to asset managers of sustainability data, ratings and research. Their analysis is used by fund managers to determine SRI fund universes and index constituents. Their services can be grouped into four with most agencies provide a range of different services:
- Data – the provision of raw environmental and social data to fund managers and index providers
- Screening – the provision of stock (equity or bond) lists based on the compliance of the underlying issuer with one or multiple ‘ethical’ or ‘sustainability’ factors
- Ratings – the interpretation of that data to create rankings and ratings of companies and to develop ‘approved lists’ and ‘at risk’ recommendations that are then used by asset managers
- Research – broader analysis of environmental and social factors and their interaction with company performance
Agencies tend to charge fund managers an annual fee at either a flat rate or as a percentage of assets under management. In addition, they often undertake specific research projects for asset owners, fund managers, NGOs etc.
After many false starts the SRI research business finally appears to be going through a sustained period of disruptive change. Financial pressures, new entrants and changing client demands are forcing substantive re-examination of the various business models that operate in this segment of the market.
It is too early to tell whether this process will be one of creative destruction that sees the SRI research business emerge as a more economically-rational, client-focussed business that can contribute to the next phase of SRI development – and specifically to the ‘mainstreaming’ of sustainability factors within broader investment processes.
In a worst case scenario, the industry will sleepwalk through a consolidation process that strips it of creative research in favour of lowest common denominator ‘pile ’em high, sell ‘em cheap’ data products.
SRI agencies should be one of the principal beneficiaries of SRI-CONNECT’s Factor Four objective of achieving twice as much SRI activity in half the time. In particular, they are likely to use the following services from SRI-CONNECT:
Market Buzz & Research
- Publish and market their research directly to the global SRI market
- Or publish notifications (or summaries) of research (while keeping the research itself within their own password-protected databases)
- Receive news, research and reports from companies and from other research organisations – 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 contacts at companies, analysts at clients and experts at other organisations
- Keep up-to-date with the shifting priorities and interests of their clients
- Present their research capabilities to a global market of SRI investors
- Ensure that suppliers (companies, specialist research providers and others) have a clear understanding of their objectives, capabilities and needs
- Participate in events ranging from company briefings to industry conferences
- Host events for clients and potential clients
- Discuss industry developments with customers, peers and suppliers
- Build and manage their own SRI network via the groups, events and messaging functions
SRI Dynamics discussion papers
- Agencies of Change - which reviews the fundamental changes underway in the provision of SRI research and discusses the challenges facing the business and research model of specialist SRI agencies.
- 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
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
For full details see Registration and membership
Build profile, distribute research, share ideas
SRI agencies 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
SRI agencies 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 6,005 results
Organisations 50 of 8,120 results
Buzzes 50 of 13,047 results
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’.
Get the latest insights about responsible finance in OIC markets & Islamic finance from the RFI Foundation, C.I.C. Subscribe to RFI’s free email newsletter today!
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
DPAM: Non Financial Annual Report 2023
DPAM: Non Financial Annual Report 2023
DPAM: Non Financial Annual Report 2023
DPAM's report covers key areas of their activities, including:
- Sustainable strategy
- Walking the talk
- Accompanying people in the transition
- Offering sustainable solutions
Manulife Investment Management: Stewardship Report 2023
Manulife Investment Management: Stewardship Report 2023
(https://www.manulifeim.com/institutional/global/en/stewardship-report)
Manulife's latest report covers key areas of their stewardship activities, including:
- Engagement
- Collaboration
- Stewardship, investment, and ESG integration
- Purpose, strategy and culture
GMO: Sustainability & Responsible Investing Report 2023
GMO: Sustainability & Responsible Investing Report 2023
GMO: Sustainability & Responsible Investing Report 2023
GMO's latest report covers key areas of their stewardship activities including:
- ESG governance
- Responsible investing
- GMO's focus on climate change
- Industry collaboration
- Diversity, equity and inclusion
- Sustainability at GMO
Brookfield Asset Management: 2023 Sustainability Report
Brookfield Asset Management: 2023 Sustainability Report
(https://www.brookfield.com/responsibility/2023-sustainability-report)
Brookfield Asset Management's latest report covers key areas of their activities including:
- Our investment approach
- Our people
- Corporate disclosure
- Sustainability at brookfield
- Environmental sustainability
- Governance
Robeco: SI Dilemma: Climate adaptation versus mitigation
Robeco: SI Dilemma: Climate adaptation versus mitigation
(https://www.robeco.com/en-int/insights/2024/10/si-dilemma-climate-adaptation-versus-mitigation)
Hurricane Helene hit the shores of Florida as the curtain closed on New York Climate Week (NYCW) at the end of September, resulting in widespread devastation and loss of life. Its destructive power along the eastern seaboard and timing at the heels of one of climate investing’s largest conferences was enough to thrust climate adaptation into the spotlight at a global gathering typically absorbed with climate change mitigation.
Summary
- Challenge of incorporating climate adaptation concerns into portfolios
- Limited investment options available for tackling severe weather
- Second dilemma of not having an agreed yardstick for biodiversity
Carbon Tracker: Responsible Exit Principles for Oil and Gas Companies
Carbon Tracker: Responsible Exit Principles for Oil and Gas Companies
(https://carbontracker.org/reports/responsible-exit-principles-for-oil-and-gas-companies/)
Asset disposals are commonplace in the oil and gas industry, and M&A has long been a feature of the industry.
Yet, as the energy transition continues to gather pace, there is a growing risk that assets are transferred to companies which have lower operational standards and reduced financial ability to pay to. Where such transfers are in response to pressures to reduce emissions, they may actually result in higher emissions.
Accordingly, we have developed a set of Responsible Exit Principles for Oil and Gas Companies for use by a range of stakeholders. They define a set of credible, widely recognised best practice standards governing the operation and eventual closure of such assets, by informing how sellers, buyers and their financial stakeholders can mitigate financial, environmental, governance and reputational risks related to such transfers.
Climate Action Network: Renewable Energy Tracker 2024
Climate Action Network: Renewable Energy Tracker 2024
(https://climatenetwork.org/wp-content/uploads/2024/10/CAN-I-Renewable-Energy-Tracker-2024.pdf)
An equity-driven assessment of countries’ progress towards 100% renewable energy systems
For the first time in history, COP28 established a global commitment for energy transformation, with countries pledging to tripling renewable capacity and doubling energy efficiency improvements by 2030, compared to 2022 levels, as well as “transitioning away from fossil fuels in energy systems, in a just, orderly and equitable
manner [...] so as to achieve net zero by 2050”. Realizing those commitments will face multiple challenges.
Countries are not on track to achieve the tripling goal. Annual improvements in energy efficiency
fell to 1.3% in 2023, far below the 4% needed by 2030. Investments in fossil fuels, although now half of those in clean technologies, remain astonishingly high, at $1.1 tn in 2024. For the first time in over a decade, the number of people without basic access to electricity increased from the previous year, reaching 685 million in 2022 (an increase of 10 million since 2021), while 2.1 billion people still lack access to clean cooking
fuels and technologies.
This edition of the Renewable Energy Tracker follows 62 countries’ performance and progress
in renewable energy deployment, in the power and end use sectors, factoring in several justice and equity aspects, including financial support, ambition and sustainable development.
Sustainable Fitch: Blue Debt: State of Play, Growth and Prospects
Sustainable Fitch: Blue Debt: State of Play, Growth and Prospects
Financing Focuses on Water Infrastructure Projects; Ocean-Related Projects Restricted by Fluid Frameworks
- Investor focus on biodiversity and climate adaptation is encouraging the issuance of blue debt instruments, particularly blue bonds, to finance projects that benefit freshwater and marine ecosystems.
- Investing in ocean projects isgaining traction within blue debt, but mostof the proceeds from blue bonds have been allocated to freshwater infrastructure-related projects that have a clearer set of criteria and metrics under existing frameworks.
- Supranationals and financial institutions were the initial drivers ofthe blue bond marketprior to 2022. Issuers have diversified to include corporates, local governments and agenciessince 2023.•Asset managers are considering the inclusion ofblue bonds in their fixed-income strategies to diversify assets and support sustainable water and ocean ecosystems
UNEP Finance Initiative: Net-Zero Banking Alliance 2024 Progress Report
UNEP Finance Initiative: Net-Zero Banking Alliance 2024 Progress Report
The Net-Zero Banking Alliance 2024 Progress Report provides an overview of member banks’ independent efforts towards transitioning their financing activities to align with pathways to net zero by 2050 at the latest and to set intermediate sectoral targets for 2030 or sooner to put them on a path towards this goal. It summarises information received from 122 member banks up to the end of May 2024 and offers insights into members’ progress on target setting and transition planning, two key aspects of the voluntary commitment banks make when joining the Net-Zero Banking Alliance (NZBA).
Progress on membership, target setting, and transition planning
- Since the launch of NZBA in April 2021, membership has more than tripled from 43 to 144 banks.
- 97 per cent of the 122 banks due to have set their first individual sectoral targets had done so.
- Around four-fifths of the 50 banks due to have set targets covering all or a substantial majority of the carbon-intensive sectors where they have material exposure had done so.
- Nearly two-thirds of the 91 banks that were due to have published transition plans had done so, with more banks planning to publish in 2024.
In addition, 15 case studies from member banks are featured in the 2024 Progress Report.
Download the full report
Climate Action 100+: Benchmark shows decarbonisation is underway for many of the worlds largest corporate emitters with a need for stronger climate transition action plans
Climate Action 100+: Benchmark shows decarbonisation is underway for many of the worlds largest corporate emitters with a need for stronger climate transition action plans
Climate Action 100+, the world’s largest investor engagement initiative on climate change, has released the latest round of company assessments against the Net Zero Company Benchmark. The Benchmark assesses the performance – based on disclosures and alignment assessments – of 168 Climate Action 100+ focus companies against the initiative’s three high-level goals: improved governance, emissions reduction and enhanced climate-related disclosures.
- Net Zero Company Benchmark annually assesses focus companies’ decarbonisation strategies and alignment with a 1.5°C emissions pathway as a tool for investors to understand their exposure to climate-related financial risks and opportunities.
- The vast majority of companies have set net zero 2050 emissions targets for their operations and assigned board responsibility for climate risk oversight, demonstrating widespread recognition that climate risk is financial risk.
- This year’s Benchmark includes the first analysis on historical emissions reductions and shows that most of assessed focus companies have reduced their emissions intensity over the past three years. But fewer are reducing emissions at the pace necessary to achieve a 1.5°C aligned pathway.
- Despite stronger disclosures related to companies’ decarbonisation strategies, capital allocation, and just transition, few companies reveal how they will align their business practices to achieve their net zero commitments.
- Climate Action 100+ also announces that 90 new signatory investors have joined since 1 June 2023.
A summary of results can be found here and the full dataset can be found here.
AngloAmerican: Half-yearly sustainability performance update (Webcast | 29 Oct)
AngloAmerican: Half-yearly sustainability performance update (Webcast | 29 Oct)
(https://edge.media-server.com/mmc/p/gp8a2jp9/)
- Date: Tuesday 29 October 2024
- Time: 13:30
- Session duration: 75 mins
- Host: Duncan Wanblad, CEO, AngloAmerican
- Access via: Link
Vontobel: Modern mining: Digging deep to find winners on the brink of a technological revolution
Vontobel: Modern mining: Digging deep to find winners on the brink of a technological revolution
Key takeaways
- The mining industry is entering a green supercycle, driven by demand for metals and minerals for decarbonization, with technology playing a key role in boosting productivity and reducing emissions.
- Epiroc, a leading maker of mining equipment, is at the forefront of this transformation, with a strong focus on autonomous operations and electrification, and a significant aftermarket presence.
- Despite challenges such as increased competition, we believe Epiroc's aggressive push into new technologies and close customer relationships could position it well for the future.
TPI: State of transition in the banking sector report 2024
TPI: State of transition in the banking sector report 2024
The State of transition in the banking sector report assesses the climate ambitions of 26 major international banks, ten US super-regional banks, and two custodian banks.
The TPI Centre began assessing the banking sector’s progress on the low-carbon transition with a pilot study in 2022. This 2024 assessment includes an evaluation of 26 major international banks, 10 US super-regional banks and two US custodian banks, on two elements:
- Net Zero Banking Assessment Framework (NZBAF)
- Carbon Performance
The results of our 2024 assessment send a clear message: the overwhelming majority of banks are still in the early stages of their transition to a low-carbon economy. This is despite the fact that most banks we assess are now publicly disclosing some of their financed emissions and half are committing to reducing them to net zero by 2050. Yet, banks score poorly on both the NZBAF and Carbon Performance assessments.
abrdn: Government bonds: the missing link in decarbonising portfolios?
abrdn: Government bonds: the missing link in decarbonising portfolios?
We consider why government bonds could be the missing link for decarbonising investment portfolios.
Decarbonisation and net-zero targets are front of mind for many investors these days. So why is one of the biggest asset classes – government bonds – not in the picture?
abrdn: Decent work: a new framework for investors
abrdn: Decent work: a new framework for investors
WHEB: Not all carbon offsets are created equal
WHEB: Not all carbon offsets are created equal
As the world grapples with climate change, reducing greenhouse gas emissions (GHG) is at the forefront of global conversations. Carbon offsets have emerged as one tool to help tackle this problem - they let you make up for your emissions by funding projects that remove or reduce an equivalent amount of carbon dioxide (CO₂) from the atmosphere.
However, there’s a catch - not all carbon offsets are created equal. If we want to make a real difference, we need high-quality carbon offsets that deliver genuine, long-term benefits for the climate that are only used for residual emissions that remain after all feasible direct emission reduction actions have been taken.
Read this article by Katie Woodhouse to learn more about the problem with low-quality carbon offsets as well as common best practice and WHEB’s approach to carbon offsetting.
Ethos: 2024 study - AGMs and sustainability reports
Ethos: 2024 study - AGMs and sustainability reports
(https://www.ethosfund.ch/sites/default/files/2024-10/Etude%20Saison%20AG%202024_EN_FINAL_1.pdf)
Dormakaba's Annual General Meeting (AGM) in Zurich on 10 October symbolically marked the end of the 2024 general meeting season for companies listed in Switzerland. Of the companies included in the Swiss Performance Index (SPI), only Barry Callebaut still has to hold their meeting before the end of the year (4th of December). The publication of this study provides an opportunity to take stock of a year in which questions - and concerns - about the excessive remuneration of certain senior executives have returned.
Maplecroft: The rise of the Sovereign Sustainability-Linked Bond – what should investors be looking for?
Maplecroft: The rise of the Sovereign Sustainability-Linked Bond – what should investors be looking for?
Sovereign sustainability-linked bonds (SLBs) have so far been extremely rare, with Chile and Uruguay the only issuers to date. However, this may soon change. South Africa, Thailand, Kenya and Rwanda have recently floated the prospect of issuing some this year. Emerging market governments are starting to take notice of SLBs’ flexibility and potential for accessing a deeper pool of international finance, especially to finance the energy transition. Unlike green or sustainability bonds, SLBs do not impose use-of-proceeds requirements on the issuer. Instead, they oblige it to achieve predetermined key performance indicators (KPIs) to avoid a step up in coupon payments (or, as in the case of Uruguay, benefit from a step down).
But there are good reasons for investors to be wary about SLBs’ potential for meaningful impact, and hence their credibility. Questions of materiality and additionality loom large. It may not be clear whether KPIs would be achieved anyway without any additional effort. There can be a mismatch of timescales: a KPI may relate to a long-term structural trend which the issuing government has limited power to affect in the time available to meet a short-term target. Nor are coupon step-ups hefty enough to incentivise progress. In practice, SLB penalties are typically very low (12-25bps), usually less significant than global interest rate moves. This renders the instrument more of a signalling device – a show of intention on the part of the government and of support on the part of the investor – that marks a direction of travel rather than a promised final destination.
Impact Cubed: Understanding ESG Factor Performance and Tracking Error Trade-Offs Across SFDR Classifications
Impact Cubed: Understanding ESG Factor Performance and Tracking Error Trade-Offs Across SFDR Classifications
(https://www.impactcubed.com/post/understanding-esg-factor-performance-across-sfdr-classifications)
SFDR has become a cornerstone for guiding investors toward funds that supposedly align with their values. But how do these classifications impact the actual environmental and social performance of these funds?
"In this analysis, we look at how funds classified under Articles 6, 8, and 9 perform across a variety of ESG factors, as well as examining how these factors relate to the funds' tracking error, offering insights into the trade-offs that may come with sustainable investing. More methodology detail can be found at the end of the article."
SSgA: Navigating Sustainable Investing - Regulation as a Driver of Opportunity and Risk
SSgA: Navigating Sustainable Investing - Regulation as a Driver of Opportunity and Risk
(https://www.ssga.com/us/en/institutional/insights/navigating-sustainable-investing)
For many investors as sustainability considerations move closer to the forefront of investment strategies, regulation has emerged as a key driver of both opportunity and risk.
This shift is being primarily driven by improved data availability, new scientific insights such as those from the UN’s World Meteorological Organization, policy changes and growing voter interest, all of which has pushed climate and sustainability issues higher up on political agendas in many jurisdictions. According to a recent Pew Research Center survey, a median of 75% of people across 19 countries in Europe, North America, and the Asia-Pacific region see climate change as a major threat — higher than concerns over misinformation (70%), cyberattacks (67%), the economy (61%), or infectious disease (61%).
This growing sociopolitical concern is influencing some policymakers and, in turn, reshaping the regulatory landscape for many institutional investors. For those managing institutional portfolios, understanding and adapting to these changes may be crucial.
BlackRock: Access To The Energy Transition In Public Markets (Podcast)
BlackRock: Access To The Energy Transition In Public Markets (Podcast)
(https://www.blackrock.com/uk/solutions/podcasts/the-bid)
The shift to a low-carbon economy will demand more capital than any of us have seen in our lifetimes—far more than private actors alone can provide. Public markets—the securities that make up the bulk of most investor portfolios available on stock exchanges—are set to play a much larger role in this transition. So, while private markets may have a head start, public markets are catching up quickly.
In this special episode, Mark Wiedman, Head of BlackRock’s Global Client Business, will lead a conversation with BlackRock investors Evy Hambro, Olivia Markham, and Will Su about the transition opportunities they’re seeing in public markets—and what it will take to fully unlock their potential.
Jefferies: How Does Sunlight Deflection Fit Into Climate Change Mitigation?
Jefferies: How Does Sunlight Deflection Fit Into Climate Change Mitigation?
The scientific community is exploring every avenue to expand and accelerate efforts around climate change. One area of research and investment is solar radiation modification (SRM), which reflects sunlight away from Earth’s atmosphere and into space.
Although much remains uncertain about SRM’s impacts — such as the effect of aerosols on clouds and climate — research in this area is expanding rapidly. Over the last few years, the US government has allocated more than $47 million to increase understanding of cloud aerosol effects and SRM.
Jefferies’ Sustainability and Transition Team hosted three experts to discuss the trajectory of solar radiation modification and its role in decarbonization.
Solar Radiation Modification remains a novel and underexplored field of decarbonization research, and it is not without some risks and controversies. Still, amid the push to expand and accelerate decarbonization efforts, SRM remains a crucial area for scientists, governments, and investors to actively monitor.
ERM: Ahead of the Climate Curve: Leveraging climate transition planning to prepare for a low-carbon future (blog)
ERM: Ahead of the Climate Curve: Leveraging climate transition planning to prepare for a low-carbon future (blog)
(https://www.erm.com/insights/ahead-of-the-climate-curve/)
Climate transition plans are coming to a jurisdiction near you. Regulators are broadly moving beyond mandatory disclosures of emissions and climate targets toward disclosure of the actions companies are planning to take to achieve those targets. Within a few years, most large companies will be required to specify precisely that in a transition plan as part of their disclosure requirements. As is often the case, Europe leads the way, but other jurisdictions will soon follow.
It’s a prospect that may not be universally welcomed. Many companies already struggle to stay on top of the steady flow of new regulations and expectations on sustainability topics. So far, most of the companies that have produced climate transition plans have approached it as an exercise for disclosure reasons, not always as a plan to integrate into their strategy and operations.
Citi: Why Sustainability Still Matters
Citi: Why Sustainability Still Matters
Against a tougher economic backdrop and reduced business certainty, should sustainability still matter to treasurers, or should it take a back seat? In this short report, Citi Commercial Bank examines why sustainability-related themes are not just alive and well, but at the very heart of corporate strategy.
Click here to download the full report.
Columbia Threadneedle: Power hungry AI - investment implications in the era of energy transition (blog)
Columbia Threadneedle: Power hungry AI - investment implications in the era of energy transition (blog)
At a glance
- The growth in AI and associated data centre expansion is set to increase power demand. This has significant implications in the era of energy transition.
- We explore options for power provision including behind the fence locations at nuclear and gas plants alongside efforts to improve grid connectivity and efficiency.
- Emissions will increase as a result of data centre expansion. Big tech will likely use some non-renewable resources but we expect them to continue investing in renewables.
- The AI revolution is thirsty for energy. We see numerous opportunities including quality names in areas like energy efficiency and provision of clean energy infrastructure.
PRI: Progression Pathways: what are they and when will they be available?
PRI: Progression Pathways: what are they and when will they be available?
Progression Pathways are a new way for the PRI to support signatories in progressing their responsible investment practices. Multiple pathways are available, to better direct signatories towards the PRI services – such as guidance, collaborative initiatives and education – that are most relevant to their objectives and level of development.
There is no hierarchy between the pathways – they exist in parallel to reflect the diversity of responsible investment objectives that PRI signatories have. Progression happens within pathways: introductory, intermediate and advanced levels within each pathway will help to guide signatories in getting started, developing their approaches and exploring market-leading practices.
The three pathways will be tailored towards:
- those seeking primarily to incorporate ESG factors;
- those aiming to address drivers of sustainability-related financial risks;
- those seeking to have positive real-world impact alongside financial goals.
Note: 2024 PRI AWARD WINNERS ANNOUNCED - details here
IIGCC: Policy paper: Investor priorities for transitioning the European steel sector
IIGCC: Policy paper: Investor priorities for transitioning the European steel sector
IIGCC has worked with a group of investors to identify four areas for enhanced policy interventions that would most effectively de-risk and support the transition of the European steel sector.
The steel industry is responsible for 7-9% of global CO2 emissions and around 5% in Europe. Steel is a crucial input to construction, energy infrastructure, machinery, and transport; all strategic sectors that support jobs and economic growth across Europe.
The steel sector’s decarbonisation is essential both for the economy-wide shift to net zero and for the alignment of investment portfolios with the transition. Creating a supportive policy environment for the transition of high emitting sectors is critical for achieving Europe’s commitment to climate neutrality by 2050.
Supporting investor engagement
Investors committed to working towards a net zero and climate resilient future - in line with their fiduciary responsibility to their clients and beneficiaries – see a net zero steel sector as an opportunity for job creation and industrial innovation in Europe.
In this context, the European steel industry is facing a historic, strategic turning point with risks and opportunities ahead. Investors see Europe as well positioned to lead the global transformation of the steel sector. The EU is a large, highly developed economy with generally high-end steel production that can seize the opportunities and show what is possible, paving the way for other regions to follow.
The areas identified and the underpinning recommendations are intended to serve as a resource to support individual investors’ engagement activities in relation to the steel sector. They are intended to provide a reference point for investors to refer to in their economy-wide macro-stewardship activities, direct engagement with policymakers, as well as engagement with companies in the steel sector and value chain.
As a basis for discussion, they are presented as high-level topics that need to be addressed rather than prescriptive next steps.
IIGCC: Net Zero Bondholder Stewardship - Engaging Labelled Debt Guidance
IIGCC: Net Zero Bondholder Stewardship - Engaging Labelled Debt Guidance
(https://www.iigcc.org/resources/bondholder-stewardship-engaging-labelled-debt)
This guidance provides an outline of how investors can engage with issuers on labelled bonds to fulfil net zero commitments and decarbonise real world emissions.
Labelled bonds provide investors with an opportunity to tie fresh capital to Paris aligned climate targets and activities in line with their own commitments to decarbonise real world emissions. However, even with rapid growth in issuance, GSS+ bonds only account for 5% of total issuance volume, and the growth in sustainability-linked bonds has plateaued.
This guidance advances the IIGCC Net Zero Bondholder Stewardship Guidance by taking a more granular approach to stewardship and engagement for labelled debt, in particular green and sustainability-linked bonds, and seeks to:
- Promote best practices for aligning labelled bonds with the net zero transition
- Explore approaches to engaging on labelled bonds
Focusing particularly on green bonds and sustainability-linked bonds, the guidance identifies the opportunities and challenges for engagement beginning with issuers from pre-issuance to post-issuance and through to a wider ecosystem of policymakers and other key players.
The guidance focuses on labelled bonds and the opportunities for net zero bondholder stewardship they provide. Unlabelled debt also provides an important opportunity to finance the transition. For more on unlabelled debt, please see the IIGCC Net Zero Bondholder Stewardship Guidance and the Potential of Unlabelled Debt discussion paper.
Trase: Smallholder cocoa farmers need support as EUDR compliance nears
Trase: Smallholder cocoa farmers need support as EUDR compliance nears
(https://trase.earth/insights/smallholder-cocoa-farmers-need-support-as-eudr-compliance-nears)
Trase research shows huge variations in the traceability of cocoa from Côte d’Ivoire and the likelihood of whether supplies will comply with the EU deforestation regulation. Support for smallholder farmers is needed to avoid excluding them from the EU market, as companies prepare for regulation.
From 30 December 2024, companies trading agricultural commodities in the EU, including cocoa from Côte d’Ivoire, will need to demonstrate that their supplies are legally produced and deforestation-free in order to comply with the EU deforestation regulation (EUDR). To do this, companies need to provide the geolocation of the plots of land where commodities were produced to prove there is no or negligible risk that they were grown on land deforested after the end of 2020. The EU and Switzerland are the largest market for Ivorian cocoa, accounting for 61% of exports in 2022.
Although the traceability requirement – if properly implemented – should help guide action to reduce deforestation linked to EU commodity imports – it will be challenging to meet for cocoa produced in Côte d’Ivoire, according to our research.
USS: Stewardship Code Report 2024
USS: Stewardship Code Report 2024
USS's latest report covers key areas of their stewardship activities including:
- 2023-24 Activities and Highlights
- Purpose and Governance
- Investment Approach
PGIM: 2023 ESG Investing Report
PGIM: 2023 ESG Investing Report
(https://insights.pgim.com/pdf/PGIM-ESG-Report-2023.pdf)
PGIM's latest report covers key areas of their activities, including:
- PGIM Philosophy and Implementation
- ESG Policy, Governance & Resources
- ESG Research & Investment Approach
- Active stewardship
DNB Asset Management: Quarterly Report for Responsible Investments Q3 2024
DNB Asset Management: Quarterly Report for Responsible Investments Q3 2024
(https://s3.eu-north-1.amazonaws.com/dnb-asset-management/ESG-SRI-pdf/Q3-2024.pdf)
DNB's latest report covers key areas of their stewardship activities, including:
- Engagements
- Voting, active ownership and progress on the transition plan
- Exclusions
Sustainalytics: The Landscape of Biodiversity and Natural Capital Funds
Sustainalytics: The Landscape of Biodiversity and Natural Capital Funds
(https://connect.sustainalytics.com/the-landscape-of-biodiversity-and-natural-capital-funds-report)
There is growing awareness of the potentially catastrophic economic risks posed by biodiversity loss, as more than 50% of global GDP is moderately or highly dependent on natural ecosystems.
This report examines the global landscape of open-ended funds and ETFs that focus on the biodiversity theme. It examines the range of options on offer based on three categories: risk-oriented, mixed, and solutions-focused. The analysis looks at the growth in assets, flows, and products in each grouping, and analyses the funds and their most common holdings through the lens of a number of financial and ESG metrics.
Key insights of this report include:
- An introduction to key metrics used to use to assess biodiversity investments.
- Global assets held in biodiversity open-end funds and ETFs more than doubled over the last three years to USD 3.7 billion, boosted by product development.
- Biodiversity funds have underperformed, on average, but showed resilience in the 2022 market downturn.
- How each type of biodiversity strategy, given their unique risk/reward characteristics, can fit into an investor's portfolio.
Download the report now to learn more.
Jobs 50 of 193 results
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)