Individuals   50 of 6,264 results

GAGabriella Abderhalden
SASimon Abrams
AAAnand Acharya
LALucy Acton
CAClio Adam
CACamilla Aguiar
CAClaire Ahlborn
Jennie AhrenJennie Ahren
SASanna Ahvenniemi

Organisations   50 of 8,173 results

::response - Sustainability & CSR Advice
1100 Resilient Cities
117 Communications
11919 Investment Counsel
22° Investing Initiative
22030hub
22050.cloud
221C
227Four Investment Managers
22Xideas
33 Banken-Generali Investment
3 Sisters Sustainable Investments3 Sisters Sustainable Investments
33BL Media
33i (Private Equity)
33i Infrastructure
33M
3rd-eyes analytics AG3rd-eyes analytics AG
557 Stars LLC
88a+ Investimenti SRG
AA B S A Group
AA Case for Coaching Ltd
Aa.s.r. (Insurance Funds)
Aa.s.r. [Company]
AA123 Systems
AA2A
AAabar Investments PJS
AAAK AB
AAalto Capital
AAareal Bank
AABB
AAbbey Partners
AAbbott Laboratories
AAbbvie Inc 
AAbengoa
AAbercrombie & Fitch
AAberforth Partners
AAbertis Infraestructuras
AABF Capital Management
AABG Sundal Collier
AAbitibi Consolidated
AABN AMRO Group
ABN Amro Investment SolutionsABN Amro Investment Solutions
AABN Amro Private Banking
AABRAPS
abrdnabrdn
Aabrdn [Company]
AAbsolut Research
AAC Partners
AACA Equity Partners
AACA Group

Buzzes   50 of 12,194 results

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HSBC: AI: Weather forecasting - A new asset in an era of extreme weather  

  • The increased frequency and intensity of extreme weather events have stressed the importance of weather forecasting
  • More unpredictable weather reduces the reliability of weather forecasting, with many negative economic and social impacts
  • Artificial intelligence (AI) could raise forecast accuracy, potentially saving lives and significant climate damages

Clients of HSBC Global Research can access the full report via the HSBC Global Research website or by contacting Wai-Shin Chan

This is the first in HSBC's 'AI' series, identifying key ESG and climate topics and discussing innovative technological solutions to help address issues sustainably.
 
The importance of weather forecasting
 
Weather forecasting predicts and monitors meteorological patterns. Accurate forecasts are crucial for public safety, health and livelihoods, as well as shipping, aviation and energy production. Forecasts are becoming ever more important as we enter an era of intensified extreme weather events and record-breaking temperatures - they are vital in helping to address challenges such as food insecurity and heat-related illness.
 
Extreme weather is costing the economy more each decade...
 
Since the 1970s, economic losses related to weather, climate and water hazards have totalled USD3.6trn, representing 74% of total economic losses from reported disasters. And costs are rising: over the next five years alone we expect a further USD771bn of losses in food and water shocks alone. It is not only the intensity but the unexpectedness of extreme weather events that makes them so damaging. Reliable forecasting is essential to help communities prepare and adapt adequately, and corporates to protect assets and avoid financial damages.
 
...and climate change is impacting our ability to forecast, too
 
Studies show that as temperature increases, the accuracy of weather forecasts decreases by several hours. Events such as hurricanes may become more difficult to forecast as warming climates enable them to develop and intensify more rapidly.
 
The answer to this challenge may lie in AI

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(https://www.globalwitness.org/en/campaigns/forests/the-cerrado-crisis-brazils-deforestation-frontline/)

Everyone knows the Amazon is in crisis. But next door, another ecological catastrophe is unfolding.

South of the world’s largest rainforest lies the Cerrado savannah, dubbed the “upside-down forest” for the sprawling roots which help its trees survive droughts and lock up carbon.

Like its neighbour the Amazon, it is being destroyed to feed the world’s appetite for beef – and it is major financial institutions who are bankrolling the bulldozers.

Deforestation in the Amazon is falling, but in the Cerrado it rose to record levels last year – increasing by 43% from 2022.

Brazil’s three biggest meatpackers – JBS, Marfrig, and Minerva – play a key role in this environmental devastation. Global Witness found these global companies have considerable illegal deforestation in their supply chains.

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(https://ninetyone.com/en/united-kingdom/insights/medicine-for-change)

'Bram Wagner, a prominent specialist from the Access to Medicine Foundation, engages in a thoughtful conversation with Portfolio Manager, Matt Evans, about how we can think of healthcare investing through the lens of accessibility. Initiatives aimed at improving accessibility on a global scale can significantly expand addressable markets within the healthcare industry. This provides investors with an opportunity not only to contribute meaningfully to enhancing accessibility, but also to invest in areas primed for structural growth.'

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With reporting season approaching, SRI-Connect surveyed the investor relations pages of Energy & Mining companies to see which had announced dates for presentations to sustainable investors.

  • Anglo American | H1 Sustainability Performance Day | 22nd April 2024 | Link
  • Equinor | ESG Day | 8th April 2024 | Link
  • Royal Dutch Shell | Annual ESG Update 2024 | 27th March 2024 | Link
  • TotalEnergies | Sustainability & Climate 2024 workshop | 21st March 2024 | Link

No announcements yet appear to have been made by:

AAA, BBB, CCC, DDD, EEE

 

 

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(https://www.sia-partners.com/en/insights/publications/international-observatory-e-fuels-race-e-fuels)

E-fuels have emerged as a promising solution for decarbonizing hard-to-abate sectors, notably, air and maritime transport. The International e-Fuels Observatory offers an analysis of 77 large-scale global projects, with a capacity equal to, or exceeding, 200 ktoe per year.

This International e-Fuels Observatory, conducted by Sia Partners for the French E-Fuels Office, aims to provide an overview of the sector dynamics, worldwide, and the challenges of mobilizing resources for six synthetic fuels with promising market potential: e-methane, e-methanol, e-kerosene, e-ammonia, e-gasoline and e-diesel.  

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(https://www.ceres.org/resources/reports/toward-consistency-assessing-power-sectors-climate-policy-advocacy)

This benchmark analysis examines the climate-related risk management, governance, and lobbying practices of 12 of the largest electric utility companies operating in the United States.

Toward Consistency: Assessing the Power Sector's Climate Policy Advocacy shows that power companies are heavily involved in climate policy engagement and are taking steps forward by advocating in support of certain climate policies. But they are also undoing that progress by advocating against other climate policies.  

  • 100% of the companies in this assessment agree with the scientific consensus concerning the causes of climate change and 100% have lobbied either individually or as part of a coalition for Paris–aligned climate policies in the last three years.  
  • Yet, at the same time, 100% of the companies have company assessed lobbied in opposition to Paris-aligned climate policies, illustrating the contradictory nature of the utility sector’s advocacy efforts. 

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JJ

(https://www.sustainablefitch.com/corporate-finance/sustainable-fitch-chinese-onshore-green-bonds-sustain-growth-amid-domestic-debt-market-slowdown-05-02-2024)

Sustainable Fitch: Chinese Onshore Green Bonds Sustain Growth amid Domestic Debt Market Slowdown

Chinese onshore green bond issuance continued to rise in 2023, although at a slower pace than in 2022, Sustainable Fitch says. The slowdown of the domestic debt market in 2023 contributed to the 35% yoy drop in onshore sustainability-linked bond (SLB) and transition bond issuance.

Total issuance of green corporate bonds, financial bonds and medium-term notes declined 3% in 2023. However, the growth of green asset-backed securities supported the expansion of onshore green bonds. Corporates from the industrial, utility and energy sectors continue to dominate onshore green corporate bonds, underpinned by their strategic position to government policies and broader financing access.

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(https://www.msci.com/research-and-insights/2024-sustainability-climate-trends-to-watch)

The widespread adoption of AI is reshaping our work landscape. Issues like forced labor and deforestation are suddenly turning up as regulatory risks.

What else might 2024 bring?

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(https://connect.sustainalytics.com/biodiversity-in-the-balance-esg-spotlight?_gl=1*1s3iot7*_ga*NTI1Mzc1NjU2LjE3MDY1NDc0MzY.*_ga_C8VBPP9KWH*MTcwODQ2NzI1Ny4yLjAuMTcwODQ2NzI1Ny42MC4wLjA.)

Investors have grown increasingly interested in addressing portfolio risks linked to biodiversity loss. Portfolio risks linked to biodiversity loss can stem from holding stocks in companies involved in land use changes for industrial production. Among the industries in our research coverage, automobiles, food retailers, textiles and apparel and household products companies are most exposed to controversies associated with biodiversity loss through their supply chains. 

Readers of this report will learn how:  

- According to new research from Morningstar Sustainalytics, investing in companies facing high levels of risk associated with biodiversity loss could have a material effect on long-term portfolio performance.
- A model portfolio investing in consumer goods stocks with lower material ESG issue (MEI) risk scores delivered a cumulative return of 51.1% over the past five years as compared to an 8.5% return for a similar, yet higher MEI risk portfolio.  

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(https://anthropocenefii.org/nature-loss/mcdonalds-deforestation-footprint-were-not-lovin-it)

The company's sourcing policies play a crucial role in influencing deforestation-linked supply chains, setting an example for the broader food market. While the company has committed to eliminating deforestation from its supply chains by 2030, there are ongoing concerns about the execution of its strategy.  Since 2021, McDonald's has tripled its volume of bond issuances, potentially raising deforestation exposure in investment-grade portfolios.

With a substantial presence in Europe, aligning its sourcing policies with the EU's deforestation-free products regulation by end of 2024 is crucial to avoiding potential negative financial consequences. McDonald's aims to eliminate deforestation from its supply chains by 2030, but the five-year gap introduces uncertainty.  Comprehensive disclosure of the company's deforestation impact is vital for effective investor engagement. Investors should ask McDonald's to disclose the volumes of products imported from high-risk countries for their European operations.

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(https://www.spglobal.com/esg/insights/featured/special-editorial/key-2024-sustainability-trends-driving-the-year-ahead)

S&P Global Sustainable1: Key 2024 sustainability trends driving the year ahead

As the physical risks from climate change increase, we expect 2024 to bring a heightened focus on adaptation and resilience planning alongside rising understanding of the impacts of climate change — including on human health.

In the year ahead we expect companies will take steps to measure and manage material sustainability issues, such as plastic, throughout their value chains under some countries’ mandatory disclosure standards. Assessing value chain impacts is complex, highlighting the need for high-quality data and transparent methodology.

As reliance on newer technologies such as artificial intelligence grows, we expect increasing pressure to ensure more robust governance to manage the risks and opportunities AI presents.

Lastly, we anticipate that the increasing urgency around decarbonizing the economy could take the global green, social, sustainability, and sustainability-linked bond (GSSSB) market closer to the $1 trillion mark.

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(https://www.fidelityinternational.com/editorial/article/corporates-face-tougher-esg-landscape-76c01b-en5/)

From 2024, large companies in the European Union will need to track how their activities affect the environment and society in order to comply with the Corporate Sustainability Reporting Directive, and then start reporting this information annually in 2025. Meanwhile, global reporting standards developed by the International Sustainability Standards Board come into effect this year. Companies also face reporting requirements devised by the Task Force on Climate-related Financial Disclosures.

Many businesses still have a lot of work to do. Across all regions, analysts say that only about half of their companies are ready to meet their sustainability reporting requirements. This rises to around 60 per cent for analysts covering European firms, leaving many unprepared even in the most prepared region of the world.

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(https://www.climatebonds.net/resources/reports/japans-climate-transition-bond)

A milestone in sustainable finance.

Japan is set to issue the first tranche of its ¥1.6 trillion (USD 11 billion) Climate Transition Bond on the 15th and 28th of February. This is a briefing note on the Bond which is Certified under the Climate Bonds Standard, a world first.

This initiative is a cornerstone of Japan's Green Transformation (GX) programme, aiming to mobilise ¥150 trillion (USD 1 trillion) over the next decade in support of advanced sustainable technologies. These efforts align with Japan's commitment to achieving its 2030 greenhouse gas reduction targets and its vision for carbon neutrality by 2050.

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(https://www.nuveen.com/global/insights/responsible-investing/annual-stewardship-report)

In this report, Nuveen recaps on efforts to remain diligent in our ability to produce meaningful outcomes for our clients. The approach is rooted in fiduciary duty to maximize shareholder value, and engagement with companies is conducted through the lens of materiality, practicality and feasibility. ‘Impact’ in the investing world can take several forms, and that transparency and accountability are necessary foundations for producing real-world outcomes.

This past year, Nuveen has engaged with over 400* companies on topics including:

  • The global energy transition and climate risk
  • Natural capital and biodiversity
  • Diversity and non-discrimination
  • Labor standards and human rights
  • Product and consumer responsibilities

Read more about the report here

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Blake Goud

(http://www.rfi-insights.org)

RFI Foundation: IMF report examines climate & stranded asset risks facing banks in MENA and Central Asia

A research paper written by an IMF team examines the readiness, risk and opportunities for the financial sector in the Middle East & North Africa (MENA) and Central Asia and identifies some areas that need particular focus. The evaluation of the region’s preparedness for the climate transition starts by looking at the sources of physical climate risk, transition risk, and the risk related to stranded assets on the region as a whole, including some that have been identified by financial sector supervisors and central bank Financial Stability Reports.

The discussion of physical risks includes several types that are impacted by climate change and identifies droughts and floods as those that are particularly impactful in financial terms for the banking sector. Overall, they estimate that bank stocks fall in the aftermath of climate disasters by around 1.5%, although the financial sector is robust enough to weather the impacts of a single climate disaster.

Through 2050, expected loan losses are projected at 1–1.5% of bank assets, assuming a slow rise in the frequency and severity of climate disasters. Total losses over the 27 years to 2050 are about 25% higher than the realized loan losses during the 40 years prior to this period, and could be understated because the figure doesn’t account for acceleration in the trend of physical risk such as from crossing climate tipping points or the increased severity of physical impacts associated with continued global average temperature rise.

The report continues looking into the transition and stranded asset risks facing the banking system in the MENA and Central Asia regions. These risks are assessed with a climate stress test using the financial impact of a carbon tax of $30 or $75 per ton of emissions as a proxy for a mix of policies to drive the transition, and the impact is noticeable. At the higher emissions cost, they indicate over 10% of bank loans representing $139 billion would be at risk of becoming non-performing. Even at the lower carbon price, which aligns with the region’s unconditional NDCs, the share of loans at risk would exceed 5%.

While high-emissions sectors are particularly impacted by the proxy of the carbon price, and have a sharply increasing number of loans at risk of becoming nonperforming, the impact is not only felt among a narrow set of high-emitting sectors. Other sectors also see a rise in the share that are at risk of nonperforming, which are defined as those not generating enough earnings to cover their interest expense after the cost of emissions is added to expenses.

Despite the substantial volume of loans at risk of becoming nonperforming under a carbon tax consistent with existing national climate commitments, it is essential to recognize the potential factors that may either under- or overstate the risks. On the side of the estimates overstating the financial risks is the lack of time specificity in these estimates with the backdrop of increasing climate action. A forecast of climate vulnerability is not determinative, and by contributing to stronger climate response, countries and financial institutions can mitigate the losses that end up being realized.

Although it is possible that transition risks could be overestimated if investments in climate change mitigation are made quickly enough and with sufficient scale, they are more likely to be under- rather than over-estimated. One reason why they may be underestimated is because the methodology uses the easiest metric of exposure — emissions of each sector — as the driver for financial risk estimates, which may not fully account for risk.

For example, utilities have a high level of emissions relative to their contribution to the economy, generating about 12 Kg of CO2e for every $1 of GDP. Although they take only a modest share of banking loans in the Middle East and Central Asia, the high emissions intensity means that utilities account for about half of the emissions intensity of regional loan books and have the highest share of loans at risk of any sector.

Other sectors have a lower share of emissions intensity in bank’s loan books based on the methodology used in the report, but it abstracts from the interlinkages between sectors, which is very likely to have an impact beyond the sectors where emissions are allocated. Utilities facing the realization of transition risk will not face those risks alone, and there will be spillover to their customers that will determine stakeholders’ evaluation of whether there has been a “Just Transition” or not.

Banks that finance both utilities and their customers will see the financial impacts of climate transition risk in the health of their finance to both. RFI accounted for this connection in our financed emissions database through presentation of both ‘direct’ and ‘indirect’ financed emissions exposure across the 206 banks that we estimated. Understanding the degree of intensity and interconnectedness of climate change was the rationale for how we produced the data, and can often be of more value than the point estimates for financed emissions that are calculated to meet disclosure requirements.

The rest of the report from IMF researchers evaluates some of the climate finance flowing to the MENA and Central Asia region, as well as making recommendations for policies that can help it scale up as far as it needs to. These opportunities for climate finance are made largely in mitigation today, often to renewable energy but also to demand-side measures such as energy-efficiency investments to help increase the share of low-carbon electricity over time even as demand grows. They will increasingly need to flow also to climate adaptation as the physical impacts of climate change rise.

Throughout the report, the authors highlight how much we know and how much more we don’t fully know about the way that climate risk will evolve over time. One of the important thru-lines that connects the policy recommendations of the reports is the need for expanding capacity around climate risk management and climate finance opportunities. The combination of physical and transition risks facing the MENA and Central Asia region elevates this need because the relevant skills can be applied in so many dimensions of the financial sector’s activities, as well as in public policy, regulation and supervision of the financial sector.

Want to learn more about responsible finance in OIC markets & Islamic finance? Subscribe to RFI’s free email newsletter today!

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(https://www.liontrust.co.uk/about-us/corporate-sustainability/responsible-capitalism-report)

The Liontrust Responsible Capitalism Report 2023 explains how the firm is developing and enhancing its approach to sustainability and stewardship in both the investments managed and across our business.

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(https://www.storebrand.com/sam/international/asset-management/insights/perspectives/perspectives-folder/sustainable-investment-review-Q4-2023/_/attachment/inline/08a2c8d0-9f83-4065-953f-b96fcc97e918:f6ad53564fbdf99b2856efe8f92bb545ad59778d/Sustainable-investment-review-Q4-2023.pdf)

Alongside updates on sustainability activity, this report contains insights and perspectives from key Storebrand figures. CEO Jan Erik Saugestad shares reflections on 2023 and some ideas about what could be ahead for ESG investing in the year ahead. Chief Investment Officer Dagfin Norum also weighs in on Private Equity, the “dark horse of all asset classes”.

Elsewhere in the report, Head of Human Rights Tulia Machado-Helland highlights what meteoric rise of Artificial Intelligence (AI) will mean for investors from a sustainability risk management point of view, with new regulations coming into play.

In this edition Storebrand shares valuable insights from two external guest contributors. Martin Norman of the Australasian Centre for Corporate Responsibility (ACCR) offers observations on the way forward for engagement in the active ownership process. And Patrik Witkowsky from the Swedish NGO ChemSec, puts forward his thought son how investors can help society make a better case for eliminating hazardous chemicals.

More details here

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(https://impaxam.com/assets/pdfs/reports/impax-stewardship-and-advocacy-report-2023.pdf?pwm=7010)

This is Impax Asset Management's sixth annual Stewardship and Advocacy Report. 2022 was another busy and encouraging year for the Sustainability & Stewardship and Policy & Advocacy teams. This report provides a snapshot into the activities, from industry-leading voting performance to leadership roles in industry groups and initiatives.

The two teams collaborate increasingly closely in pursuit of joint priorities in common areas of focus. This report is therefore structured according to the four overarching pillars of our stewardship and advocacy activities: climate, nature, people and governance.  For each pillar, stewardship activities, including engagement dialogues with investee companies, proxy voting activities and shareholder proposals are described. While 2022 was a record year for shareholder proposals at US companies, in a reflection of the current US political climate, it also saw a rise in shareholder proposals expressing scepticism of companies’ efforts to address ESG-related risks and opportunities.  Stewardship at Impax means being actively engaged, not activist investors. Impax proactively engage with the companies held across Impax portfolios and strategies, often over many years, encouraging them to adopt best practices, improve disclosures and address any concerns.

Alongside our stewardship activities, Impax looks to shape better policy – and accelerate the transition to a more sustainable economy – through advocacy work. For each pillar in this report, Impax highlights achievements and contributions during 2022 across a range of initiatives. As part of long-term focus on climate, as detailed in our 2022 Taskforce on Climate-related Financial Disclosures Report, it has played an active role in the Glasgow Financial Alliance for Net Zero (GFANZ) continuing to advocate for greening the real economy – as opposed to simply decarbonising investment portfolios.

Read more in the report

(https://www.lseg.com/en/ftse-russell/research/solving-scope-3-conundrum?%20utm_campaign=&elqcampaignid=&utm_source=other&utm_medium=referral&utm_content=&utm_term=&referredby=sriconnect)

Scope 3 greenhouse gas emissions on average make up over 80% of corporate carbon footprints. Accounting for these emissions is critical for investors to analyse transition risks associated with their investments and to comply with Net Zero commitments and evolving regulatory standards. However, data quality issues and gaps hinder investors' ability to systematically evaluate Scope 3 emissions and integrate them into investment processes and reporting.

This report addresses ten key questions about Scope 3 emissions and proposes solutions to enhance data quality, improve data reliability, and make Scope 3 data more accessible and user-friendly.

What our research means for investors

Scope 3 emissions present one of the most vexing problems in climate finance. There is broad agreement that consideration of Scope 3 emissions is indispensable to a clear-eyed assessment of climate risks for companies. However, practical integration in portfolio analysis and investment decisions is often hobbled by the complexity of Scope 3 accounting, low disclosure rates, variable data quality, high volatility, and poor comparability. The lack of consensus on which categories should be regarded as material is key to the Scope 3 Conundrum. We address this issue by proposing a new approach based on empirical data to identify the most material Scope 3 categories in each sector.

In line with this methodology, we recommend investors focus on systematically identifying and examining the most material Scope 3 categories in available data to enhance robustness and comparability consistency over time and remain mindful of the inherent data limitations.

Points of differentiation:

  • To address the lack of consensus on which categories should be regarded as material, we propose a new, streamlined approach based on empirical data to identify the most material Scope 3 categories in each sector. This methodology will simplify reporting for companies, enhance the quality and comparability of both reported and estimated Scope 3 data, and enable more informed investment decisions
  • We focus on a set of ten key questions on Scope 3 that are frequently asked within the institutional investment community, particularly those investors and other finance sector professionals that are looking to better understand and use Scope 3 data. In addition, this information supports a broader set of stakeholders, including disclosing companies, academics, standard setters, and policy makers
  • In our recommendations to companies, investors, and regulators, we emphasise the need to systematically focus on the most material Scope 3 categories in each sector to reduce reporting burdens and improve quality and comparability of Scope 3 data

(https://www.lseg.com/en/ftse-russell/research/sdg-sovereign-indices-impact-investing?%20utm_campaign=&elqcampaignid=&utm_source=other&utm_medium=referral&utm_content=&utm_term=&referredby=sriconnect)

The Sovereign Sustainable Development Goals (SDG) assessment is a data product developed by Beyond Ratings, covering about 190 countries and leveraging more than 230 KPIs, the majority of which come from the United Nations official SDG database. The model uses a robust statistical approach to transform these inputs into a score for each SDG as well as an overall score. These scores aim to measure countries SDG progress, but – in the context of sovereign bond portfolios – can also provide a robust and versatile tool for impact-oriented portfolio reporting and portfolio construction, including the design of SDG-aligned government bond indices.

Key findings:

  • Our SDG Factor-In methodology allows alignment with an official framework as the majority of the leveraged KPIs come from the UN SDG database
  • This robust statistical approach allows to transform KPIs into scores by SDG for each of the covered countries
  • The flexibility to select only specific SDGs permits to create sovereign fixed income tailored indices

Points of differentiation:

  • This is a niche market in which solutions are lacking, we fill this gap with our Sovereign SDG Assessment and its index use case
  • Providing customers with flexibility and transparency when it comes to achieving the SDGs
  • Taking into account the income bias inherent in the sovereign sustainable segment
  • Compatibility with both best-in-class or exclusion approaches within the same portfolio

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  • Global climate stocks outperformed global equities by 2% in 2023
  • Technology has emerged as the best-placed major climate theme; EPS momentum is highest across all climate themes
  • Transport Efficiency continues to screen attractively for a fifth straight quarter in 1Q24

Clients of HSBC Global Research can access the full report via the HSBC Global Research website or by contacting Wai-Shin Chan

HSBC's Climate Radar report highlights 20 stocks, ten in each of the two themes. Their equity research team covers 2/10 in Technology and 4/10 in Transport Efficiency (see HSBC Climate Radar: Q1 2024, 23 January 2024).
 
Strong performance in 2023: Global climate stocks maintained positive price momentum and outperformed global equities (FTSE All World) by c2% in 2023. Major themes from Energy Efficiency and Management sector such as Transport Efficiency, Technology, and Industrial Efficiency have been the key drivers of price outperformance. In sharp contrast, we continue to see weakness in the Decarbonisation sector; themes such as Solar and Wind have lagged and, looking ahead, we see more pain given oversupply concerns and potential policy risks associated with the renewable sector.

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(https://66e92bb4-13f5-462a-98c4-69b0f2ad5f7d.usrfiles.com/ugd/66e92b_09a720cd54e244b3a65025d1459f3ac6.pdf)

Millani: To be or not to be "ESG" - Sustainability-related report labelling trends in Canada 

Recently, it seems that a fundamental question has been surfacing among issuers: Is it more fitting to publish one’s sustainability-related disclosures as an “ESG report” or as a “Sustainability report”? This question stems from the ever-evolving landscape of corporate sustainability reporting, where terminology carries substantial weight and has been often used as fodder to fuel the ongoing and polarizing debate around the term “ESG”. In the United States, this discourse has taken on a binary character and is often framed as an either-or discussion: companies must either aim to maximize shareholder value or address ESG topics, but not both.

Larry Fink, Chairman and CEO of BlackRock, currently the world’s largest asset manager, recently announced that he was to cease using the term “ESG”, under the premise that it has become excessively politicized.

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HSBC: AI Regulations - Assessing the impact on companies

  • Policymakers worldwide are devising new regulations, seeking to promote innovation and mitigate potential adverse impacts
  • The main focus is on internal governance, but advances in synthetic content labelling and intellectual property are evident
  • In our view, compliance with future regulations will demand significant effort from companies in different sectors

Clients of HSBC Global Research can access the full report via the HSBC Global Research website or by contacting Wai-Shin Chan

Regulating fast-moving innovative technology is challenging. Recent developments in large language models (e.g. ChatGPT) have prompted an enhanced public interest in AI, including new debates about AI risks and the need for regulatory oversight (see Generative AI, February 2023). According to the WEF Global Risks Report 2024, respondents to its survey (from academia, business and government) saw misinformation and other adverse outcomes of AI technologies as the 5th and 6th most severe global risks in the long term. The challenge for regulators is to respond to these concerns with policies that strike a balance between intervention and innovation as well as building sufficient flexibility to capture rapidly changing AI applications.
 
The current and future regulations mainly address AI workings, but broader issues are in the spotlight too. Rules on model testing, elimination of bias and traceability have been among the first measures adopted by policymakers as they aim to mitigate risks to stakeholders. However, we are now seeing more guidance on how AI can help address global challenges, including climate change, and how it can impact labour markets.

(https://planet-tracker.org/wp-content/uploads/2024/02/Climate-Transition-Mismatch.pdf)

Planet Tracker: Corporate Alignment with Climate Goals Under Scrutiny

Company membership in trade associations has emerged as a critical area of concern, particularly when corporate management teams claim to be supportive of lowering their carbon footprint but are members of associations that appear to be at odds with the goals  set out in the Paris Agreement.

A new report from Planet Tracker urges corporations to reassess their affiliations with industry associations that diverge from their stated environmental objectives. This move is seen as essential to avoid accusations of 'greenwashing’.

Chemical giant LyondellBasell (LYB) has emerged as an example of good practice in this field by revealing misaligned industry affiliations in the company's Climate Advocacy Report released in May 2023. Bayer (BAY) also provides a template others can follow in their Industry Association Climate Review.

The financial markets are increasingly calling for transparency on climate strategies to ascertain alignment with the Paris Agreement and to facilitate more accurate financial forecasting.

The World Resources Institute (WRI) introduced the AAA Framework in October 2019, which provides a five-step process for companies to follow.

Download the Investor Engagement Sheet and the Best Practice Guide

(https://planet-tracker.org/basf-upgrades-climate-transition-plan/)

Planet Tracker: BASF upgrades climate transition plan

BASF has recently upgraded its climate transition plan aligning with some recommendations from Planet Tracker, especially regarding  setting (partial) Scope 3 targets.

BASF unveiled upgraded targets in December 2023, adding to its mitigation goals  to reduce Scope 1 and 2, and some Scope 3 emissions. Notably, the company plans to decrease specific upstream Scope 3 emissions by 15% by 2030.

Despite these positive steps, the lack of a detailed roadmap and capex projections still raise questions about the feasibility of BASF's net zero transformation.

BASF highlights significant sales from sustainable products, underscoring the need for investor focus on sustainability-aligned strategies.

While BASF's progress is commendable, ensuring the timely execution of climate projects alongside dividend commitments remains a critical challenge, necessitating early and decisive action.

(https://planet-tracker.org/colgates-climate-disclosures-show-a-positive-change/)

Planet Tracker: Colgate's climate disclosures show a positive change

Colgate-Palmolive's (CL) climate transition plan has shown positive changes, as highlighted in an update by Planet Tracker that re-evaluates the company's sustainability efforts.

The new analysis focuses on the company's greenhouse gas (GHG) emissions evolution from 2018 to 2022 and considers the recent approval of new targets by the Science-Based Targets Initiative (SBTi) in 2022.

The overall assessment indicates that Colgate-Palmolive's ambitious targets to reduce Scope 1, 2, and Upstream Scope 3 emissions would align with a 2°C pathway. Despite positive steps taken by Colgate, concerns persist about the correlation between investments and emissions reduction, as well as the identification of transition and physical risks.

The company's acknowledgment of risks related to Carbon Pricing Mechanisms and Water Scarcity is welcomed, but until improvements are made public, Planet Tracker's assessment does not position Colgate-Palmolive in alignment with the 1.5°C target by 2030, despite its positive historical evolution.

In conclusion, the re-evaluation underscores the importance of ongoing communication and continual improvement in corporate sustainability efforts.

(https://planet-tracker.org/exposing-water-risk/)

Planet Tracker: Urges Increased Water Risk Disclosure in the Apparel Industry

In a recent analysis of 3,900 documents, transcripts and filings from apparel-related companies using Natural Language Processing (NLP), Planet Tracker examined how the management teams of 29 major apparel brands perceive water-related risks.

An overwhelming 90% of the examined documents failed to mention water-related risks, with many companies barely mentioning water-related risk at all, highlighting a significant gap in disclosure practices.

Despite this, the findings reveal a notable increase in mentions of water-related risk over the analysed period, growing from approximately 2,000 in 2018 to more than 9,000 in 2022, implying that in the minority of documents where water-related risk is disclosed, the subject is being more frequently discussed.

The majority of disclosures come from non-luxury brands, followed by luxury brands, while companies mainly operating as apparel retailers show limited mentions of water-related risks.

Minimal attention in transcripts from corporate events suggests a lack of focus from investors on this critical issue - financial institutions, investors, and lenders in the apparel industry face financial exposure to water-related risks.

Download the report: Exposing Water Risk: How do textile brands think about water risk?

Download the Investor Engagement Sheet

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(https://bostoncommonasset.com/active-investor-impact-update-2023-4q/)

Boston Common AM's latest quarterly update covers key areas of their activities, including:

  • Net zero asset management commitment 
  • 2024 proxy season 
  • Engagement highlights 
  • Biodiversity risk & opportunities

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(https://www.millani.ca/_files/ugd/66e92b_f15bc0c6b93b4b81bcc84af26194f6a3.pdf)

Millani's eighth Semi-Annual ESG Sentiment Study of Canadian Institutional Investors reveals an emergent trend towards a greater emphasis on sustainability outcomes and impacts. The study indicates that 43% of asset managers interviewed are planning to launch impact-oriented products in 2024, marking a notable shift in the industry as investors move beyond ESG integration. Asset owners, asset managers, and issuers who diligently prepare for this shift are likely to secure a competitive advantage, positioning themselves favorably in an investment landscape that is increasingly overseen by regulators and attentive to the tangible impacts of sustainable investing.

The findings were obtained from 32 interviews conducted in December 2023 with asset owners and managers across Canada totalling over CA $4.5 trillion in AUM.

Key observations include:

  • Asset managers: be clear and precise on fund labels - In the past, we witnessed claims of greenwashing with ESG products. To avoid impact washing, language aligning with the fund strategy will be crucial.
  • An upswell of impact-oriented products expected in 2024 - This was the major surprise in this study: 43% of asset managers interviewed plan to launch impact products in 2024.
  • Asset owners: grasp the nuances between sustainability outcomes and impact - With the anticipated launch of impact funds in the market, asset owners are advised to understand the nuances between ESG integration, investing for sustainability outcomes and impact, while strengthening their investment processes and increasing oversight in external manager in due diligence. 

(https://bit.ly/4bD9ASD)

WHEB: Staying the course – WHEB remains committed to sustainability investing

Seb Beloe explains why WHEB remain committed to sustainability impact investing alongside media reports of managers reversing out of the sector.

The underlying issues that people care about such as inequality, climate change, ill-health and destruction of the natural environment remain profound challenges for the world.

Done well and with integrity, sustainability investing is part of the solution to these challenges. What is more, investors can benefit from the value created by companies in these growing markets.

(https://www.lseg.com/en/ftse-russell/research/decarbonisation-in-equity-benchmarks? utm_campaign=&elqcampaignid=&utm_source=other&utm_medium=referral&utm_content=&utm_term=&referredby=sriconnect)

Written in partnership with the UN-convened Net Zero Asset Owner Alliance (NZAOA), this paper, the second in an annual series, analyses trends and measurement techniques for portfolio carbon exposure using the FTSE All-World Index as the reference benchmark.

What our research means for investors

We highlight that analysing portfolio emissions results requires careful interpretation and recommend that investors: 

  • Rely on a dashboard of portfolio emissions metrics instead of a single measure to avoid idiosyncratic biases
  • Focus on multiyear trends rather than year-on-year fluctuations, given the volatility of most portfolio emissions metrics
  • Conduct careful attribution analysis for observed changes to identify real world emissions reductions vs sources of volatility

Our analysis of the FTSE All-World Index highlights that: 

  • With a rebounding global economy post COVID in 2021, emissions declines have moderated, with typical firm-level emission reduction decreasing from 5% to 1%, and a quarter of reporting index constituents increasing emissions by at least 10% in 2021
  • Year-on-year intensity changes are often dominated by the attribution factor (i.e., weight and normalisation factor) rather than emissions, as emissions are often less volatile than the normalisation metrics used to calculate carbon intensities
  • Dynamics in high carbon sectors drive a large proportion of portfolio carbon intensity. For example, reductions in constituent weights in high-carbon industries (Energy, Utilities, Basic Materials, and Industrials) account for 64% of the WACI reduction between 2016 and 2021 
  • Scope 3 emissions portfolio metrics need to be interpreted carefully as evolving disclosure practices drive instability in portfolio level results

Points of differentiation:

  • This paper is written in partnership with the UN-Convened Net Zero Asset Owner Alliance, a member led initiative of 86 institutional investors representing US $9.5 trillion in total assets1, ‘committed to transitioning their investment portfolios to net zero GHG emissions by 2050'
  • This report marries FTSE Russell’s deep expertise in portfolio analytics and best-in-class sustainable investment IP to highlight challenges and best practices in evaluating and tracking portfolio decarbonisation over time.

(https://www.lseg.com/en/ftse-russell/research/cop-net-zero-atlas? utm_campaign=&elqcampaignid=&utm_source=other&utm_medium=referral&utm_content=&utm_term=&referredby=sriconnect)

Our third annual Net Zero Atlas provides an updated analysis of G20 countries’ climate targets, mitigation strategies, and physical risk exposures. The report outlines a refreshed evaluation of the ‘temperature alignment’ of national climate commitments and actions for G20 countries. Critically it includes expanded analysis that considers the latest physical impacts of climate change on G20 countries and systematically assesses their approaches to adaptation planning. 

Key findings from our physical and transition risk research:

Physical risk

  • The physical effects of climate change are intensifying. The eight years since the conclusion of the Paris Agreement in 2015 are now the hottest measured.
  • Rising temperatures are fuelling new climate extremes, with heatwaves, wildfires and flooding becoming more common, damaging, and deadly. 
  • In contrast to transition strategies, G20 countries’ adaptation strategies are still in their infancy. Even as common features begin to emerge, G20 countries’ adaptation strategies are still heterogeneous and clearly identified best practice is yet to emerge. Despite recent progress, we find only limited evidence of systematic resourcing, implementation, and monitoring of adaptation plans, even among advanced G20 economies.

Transition risk

  • Our calculations show that achieving the mid-century targets of G20 countries would align with 2.1°C by the end of the century, unchanged from COP27.
  • We observe two gaps:
    • An ‘ambition gap’ as G20 countries’ 2030 Nationally Determined Contribution (NDC) targets track towards half a degree higher temperatures than their mid-century targets (2.6°C vs 2.1°C)
    • An ‘implementation gap’ as G20 members policies are not yet sufficient to achieve the NDCs. In aggregate, we estimate annual emissions would be 7.9% higher under current policies than targeted under their NDCs.
  • Mirroring the emerging results of the Global Stocktake, our exploration of Marginal Abatement Cost (MAC) curves suggests that closing the gap to a 1.5°C aligned trajectory can mostly be achieved through cost effective technologies. We estimate that 55% of the near-term abatement needed to get back on track at the G20 level by 2030 could be met through ready-to-use decarbonisation technologies like renewables.

Points of differentiation:

  • For the third year in a row, this report builds on our existing sovereign climate methodologies, providing Implied Temperature Rise (ITR) assessments and tracking progress for country level climate commitments and policies in the G20.
  • We combine these proprietary ITR assessments with MAC curves to estimate where emissions abatement might happen most economically. This allows us to observe how countries could ‘get-back-on track’ for 1.5°C aligned trajectories and in doing so the sectors where this abatement could happen.
  • We bring together expertise on both transition and physical risks, leveraging open-source databases and scientific literature to analyse past and future risks at the national and sectoral level. We also provide an assessment of adaptation policies in the G20 countries based on an extensive literature review.

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  • EU Directive approved that prohibits misleading claims on products' environmental, social or circularity characteristics...
  • ...bans generic environmental claims and climate-related claims relying on emissions offsetting, by 2026
  • In our view, greenwashing faces rising regulatory and legal scrutiny; a marketing strategy can quickly become a liability

Clients of HSBC Global Research can access the full report via the HSBC Global Research website or by contacting Wai-Shin Chan

Green(wash)out: With the legislative act being published on 2 February 2024, the Directive on 'empowering consumers for the green transition' is ready to be published in the Official Journal. The Member States will have 24 months to integrate the Directive into national law and 30 months to apply the measures from its date of entry into force (see EU Green Deal Push(back), 10 January 2024). The Directive is part of the circular economy package and targets unfair commercial practices that mislead consumers about a product's environmental, social or circularity characteristics. It will be complemented by the Green Claims Directive (EU ups the pressure on "greenwashing", 5 April 2023) that has yet to be approved by the EU Parliament and Council, and sets minimum requirements for substantiation and communication of voluntary environmental claims and labels.
 
What it says?: The Directive bans generic environmental claims, such as "eco", "natural", or "biodegradable". Businesses will now have the legal obligation to comply with the EU Ecolabel Regulation or have "top environmental performance" as defined by other applicable laws to make an environmental claim. The Directive also bans climate-related claims (e.g., "climate neutral") based on emissions offsetting (see Figure 1 for details). There has been increased scrutiny on offsets and greenwashing and this Directive, in HSBC's view, is likely to add pressure on corporates to implement and communicate credible climate claims. In 2023, for example, Nestlé announced plans to stop using carbon offsets and withdrew its pledge to make certain brands carbon neutral - a trend that is likely to gather momentum, in HSBC's view.

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  • China releases new regulations for its national emissions trading scheme (ETS), to come into force from 1 May 2024
  • The new regulations stipulate tougher, clearer and market-based penalties for non-compliance in the carbon market
  • We think the upgraded penalties will boost emissions trading activities, and also the accountability of management

Clients of HSBC Global Research can access the full report via the HSBC Global Research website or by contacting Wai-Shin Chan

A good start in 2024: China has been busy in its climate work in 2024. After the resumption of trading for carbon credits (known as China Certified Emissions Reduction or CCER) in January, the State Council of China released the regulations on carbon trading on 4 Feb. The new regulations will be effective from 1 May 2024. HSBC think these actions indicate that China is preparing to expand its national ETS to non-power emissions-heavy industries such as building materials (cement and aluminium) in response to the EU CBAM, which will be fully implemented in 2026.
 
Penalties in focus: In HSBC's previous note (China releases National Carbon Emissions Trading rules, 11 January 2021), they highlighted fines for violating carbon market rules were too low. These amended regulations tighten the penalties for compliance failures in the carbon market and identify more, different types of illegal acts in the market. For example, the latest maximum fine for forging GHG emissions reports is RMB2 million (c USD28,000), over 60 times more than Measures for the Administration of Carbon Emissions Trading and 10 times more than the proposal in 2021 (see Figure 1 on pg2).
 
Aligning to the market: Under the new regulation, some penalties, such as for the late surrender of emissions allowances, will be based on the number and market price of un-surrendered allowances instead of a fixed amount. Previously, it could be more economical for large polluters to pay the fine than purchasing allowances given the low penalties. Thus, HSBC think these amendments provide further incentives for ETS entities to trade in the national carbon market (since current trading volumes are quite low).

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  • ESG pushback continues with critics drawing on a range of evidence to support their anti-ESG arguments
  • Any attempt to analyse the statistical relation between ESG scores and performance may well be misplaced
  • We think considering ESG in a fully integrated, dynamic way would negate some of the ESG pushback we see today

Clients of HSBC Global Research can access the full report via the HSBC Global Research website or by contacting Wai-Shin Chan

Investment analysts approach ESG in different ways. Many analysts - often those relatively early in their journey examining environmental, social, and governance criteria, in our view - tend to rely on external company scorings and ratings, such as those provided by one of the many ratings agencies. Others - often those further along in their ESG journey - tend to rely much less on external scoring and ratings, increasingly viewing ESG as material information that complements their existing investment and decision-making processes.
 
Criticism and pushback against ESG have increased. This has the potential to damage the credibility of material non-financial ESG information and hinder its incorporation into long-term valuations and stock prices. The extent and nature of the pushback differs by region and country, and it comes in many forms as we explain in The climate in 2024: The waiting game, 8 January 2024.
 
ESG critics often justify their claims by citing research that shows "no link between ESG scores and stock performance". As with any criticism, a deeper investigation of the research evidence is required. We think the use of ESG scores is problematic in this research as are some of the methods used.

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HSBC: JOIN HSBC ESG Webcast: ESG in 2024 - It's not easy going green 

  • ESG pushback is a hot topic while ESG investing is at a crossroads. Will anti ESG sentiment ramp up in 2024 and what does this mean for green investment?
  • Europe is also facing Green Deal pushback. What is the state of play? Will the proposed 2040 targets survive?
  • At the sector level we discuss Artificial Intelligence (AI) risks and the latest on energy transition, and governance with a look at board expertise and performance
  • Click Here to Register for the webcast and the Q&A feature

NB client access required

Speakers:

  • James RYDGE, Head of ESG Research EMEA
  • Sean MCLOUGHLIN, Head of Industrials Research EMEA
  • Amit SHRIVASTAVA, ESG Analyst, Senior European Equity Strategist
  • Amy TYLER, ESG Analyst
  • Yaryna KOBEL, Corporate Governance Analyst

 

 

 

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(https://substack.com/app-link/post?publication_id=10802&post_id=139918351&utm_source=post-email-title&utm_campaign=email-post-title&isFreemail=true&r=2u2apu&token=eyJ1c2VyX2lkIjoxNzE0MjgwMzQsInBvc3RfaWQiOjEzOTkxODM1MSwiaWF0IjoxNzA3NzIxMjY4LCJleHAiOjE3MTAzMTMyNjgsImlzcyI6InB1Yi0xMDgwMiIsInN1YiI6InBvc3QtcmVhY3Rpb24ifQ.G8sUakBKDYCaVGf0iQrcAGoZv_QS6b-Dn8_sYuEfAb0)

We live in a world where costs for most companies are driven by the wages they pay their employees. And employees – especially skilled employees – are becoming more demanding of their employers. While some executives may see this as a burden, smart executives embrace this and turn it into an advantage.

Take the example of corporate social responsibility or corporate ESG efforts in general. It is by now a well-established fact that many employees prefer working for ‘moral’ companies and demand a wage premium from companies with a more troublesome reputation.

My impression, and I think I am not alone, is that Millennials and Gen Z in particular are less focused on ‘making the most money’ and ‘having a great career’ than their parents and grandparents. This means when looking for a job, they will not only look at the paycheck or the career opportunities but place greater emphasis on softer criteria like the sustainability of the company’s business.

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(https://www.iigcc.org/resources/iigcc-scope-3-emissions-paper)

Scope 3 represent emissions from a companies’ value chain, covering both the upstream supply chain and downstream customer activity. This paper outlines investor perspectives on both the importance and the complexity of the value chain emissions of their investee companies in the context of achieving net zero portfolio emissions.

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(https://igcc.org.au/wp-content/uploads/2024/02/IGCC-Annual-Report-2023-FINAL.pdf)

The Investor Group on Climate Change has released its Annual Report for 2023, showing its work with members to mitigate climate risk and leverage the opportunities of the global transition to net zero.

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(https://globalmarkets.cib.bnpparibas/esg-investing-in-emerging-markets-a-roadmap-towards-net-zero/)

A recent event hosted by BNP Paribas in association with the Emerging Markets Investor Alliance (EMIA), brought together experts in the field of emerging markets, credit, and sustainability to discuss Emerging Market debt and the importance of ESG within the region. Speakers addressed ESG regulation and data, how investors can support the transition in emerging markets, sovereign engagement as an essential tool to drive forward ESG adaptation and the increasing need to incorporate biodiversity in investment decisions.

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(https://www.lgim.com/uk/en/capabilities/defined-contribution/esg-pensions-research/)

Pension members’ green light for ESG investing

In one of the toughest economic climates in decades, UK workers might be forgiven for being wary of having to pay more for anything. Yet our latest research suggests that most DC pension savers would be prepared to pay higher fees to see their pension funds supporting ‘green’ initiatives.

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(https://www.transitionpathwayinitiative.org/publications/70/show_news_article)

The aim to make “finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development” is an important element of the Paris Agreement . Such flows must come from both the private and public sectors. As part of the global drive to net zero, there is a particular need to increase financing for climate action in emerging markets and developing countries (EMDCs): according to the Independent High-Level Expert Group on Climate Finance, international private finance to EMDCs must increase fifteen-fold to achieve the low-carbon transition.

As more financial institutions commit to net zero targets, rigorous and consistent climate assessments of financed entities will be needed, tailored to specific regional circumstances. This will be a key enabler for ramping up private climate finance globally. Yet, the tools currently available are not sufficiently nuanced, especially when it comes to their suitability for EMDCs.

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(https://www.ssga.com/uk/en_gb/institutional/etfs/insights/stewardship-activity-report-q3-2023)

This report covers State Street Global Advisors’ stewardship activities in Q3 2023. The report features our current engagement campaigns, corporate governance observations from the United States proxy season, and key regulatory consultations in the United Kingdom.

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(https://cleanedge.com/views/latest)

“The future is already here – it’s just not evenly distributed,” is the oft-quoted dictum attributed to sci-fi author William Gibson. This certainly reflects the shift from fossil fuels to clean energy – where some places are far ahead of the energy transition curve. Last year, for example, Germany and Spain reached 52% and 50% of their electricity generation from renewable energy (RE) sources, respectively, a record for both. For six consecutive days in October, Portugal was fully powered by RE on its grid, and RE accounted for 61% of the country's electricity generation in 2023, up from 49% a year earlier.

We see similar energy transition milestones in transportation; more than half of all passenger cars sold in countries like Norway, Iceland, and Sweden are now electric vehicles (EVs), while China is projected to see one-third of all car sales attributed to EVs for its final 2023 tally. China-based BYD surpassed Tesla for the first time in EVs shipped in a full quarter (Q4 2023), and China now sells more EVs domestically than any other nation, accounting for approximately 55% of the total global market share. These forward-leaning places provide a glimpse of where things are headed. What’s driving all this activity? As I highlight in my Insight at the end of this column, there are three major trends to watch in the coming year that are poised to reshape our energy landscape:

  • A commitment by nearly 200 nations to triple global renewables deployment by 2030
  • The massive build-out of new storage and grid infrastructure to support the energy transition, and
  • Competition across the globe to deliver a fast-charging, long-range $25,000 EV

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(https://www.conference-board.org/publications/surf-ESG-wave)

Regulations, both domestic and international, pose a significant challenge for companies in 2024, ranking second only to inflation as high impact issues on the radar of chief legal officers and ESG executives, according to our C-Suite Outlook 2024. While CEOs and directors place domestic regulations in their top 10 concerns, international regulations, such as the EU Corporate Sustainability Reporting Directive (CSRD), barely register.

US CEOs and board members should not underestimate the impact of international and domestic regulations on their organizations. For example, approximately 3,000 US companies with significant operations in the EU will be subject to the CSRD, which requires companies to assess the impact on the company and of the company in 10 ESG areas across their value chain. In addition to California’s new climate disclosure requirements, the SEC adopted a cybersecurity disclosure rule that went into effect in December and has announced it will soon adopt or propose new disclosure rules on topics such as climate change, human capital management, and board diversity.

(https://www.sustainablefitch.com/corporate-finance/transition-assessments-flag-hurdles-for-energy-companies-01-02-2024)

  • The twelve energy companies Sustainable Fitch has evaluated using our Transition Assessment (TA) methodology have, to date, made limited progress towards net zero.
  • 42% of them received the second-lowest grade (brown), while just a quarter of companies received an ‘olive’ or greener grade indicating more progress and higher ambition.   
  • Based on reported data, the companies are roughly evenly split between those with rising and falling Scope 3 emissions. However, few companies reported data across all relevant Scope 3 categories, making it challenging to draw firm conclusions.
  • Targets are also patchy, in some cases only applying to certain parts of the company. 
  • For most of the companies we assessed, long-terms pledges to transition to net zero have yet to translate into concrete steps to shift energy companies’ business mixes away from fossil fuels. Just one oil & gas company we assessed commits to materially decreasing upstream hydrocarbon production.

@
Emy Fraai

(https://www.robeco.com/en-int/insights/2024/02/robeco-launches-the-essentials-of-biodiversity-investing)

Biodiversity is a relatively new area of sustainable investing that is gaining traction, particularly as it’s directly connected to climate change. But how much do you know about it? Could you explain the opportunities that lie in this abundant arena, along with the regulations thar are promoting it, and how it works in real life?

Summary

  • New Essentials module explains biodiversity investing in nine chapters
  • Course includes relevance, regulations, collaborations and case studies
  • Reading the module and passing the test gives you up to two hours of CPD
 

(https://online.flippingbook.com/view/1022071935/)

Ivey Business School: Report release: Advancing Regenerative Agriculture in Canada

"Advancing Regenerative Agriculture in Canada: Barriers, Enablers and Recommendations" was published by the Ivey Centre for Building Sustainable Value on January 29, 2024. This report has chapters describing how investors, corporations, public policy and land use planning can help farmers to adopt regenerative practices. There are insights for all urban regions facing loss of farmland in its vicinity.

  • The report has a chapter dedicated to the role of the financial sector (pp. 90-107) with a table of financial instruments and a helpful checklist. 

  • There is also a section for farmland valuation (pp. 43-51), which overlaps on valuing nature.

  • A chapter on the role of investors and companies (pp. 69-77).  

  • A chapter focused on land use planning and real estate development pressures. (pp. 78-89).

  • We have a chapter on how regeneration creates value for the farming system, where biodiversity and soil health are address. (pp. 34-52)

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