Investor coalitions

JobPost: Ethical Screening - Responsible Investment (ESG/Ethical/Impact) Researcher (CloseDate: 9am 3 Jan 2023)

We have an exciting opportunity for an enthusiastic, self-motivated, and passionate person to join our expanding team in an exciting multi-skilled role. The role involves in-depth research and analysis into publicly listed companies on ethical, ESG, and sustainability themes. Your research will contribute to our widely regarded products and services which enable responsible investment decisions to be made.

All candidates must have a strong interest in responsible investment themes, including, but not limited to, environmental issues, labour standards, complex supply chains, and the UN Sustainable Development Goals (SDGs). Experience in a role relating to finance and investment is desirable but not essential.

This is a full-time contract based in Cheltenham, UK, however we will also consider proposals for part-time hours. Remote and flexible working is also available (please state if these are of interest in your covering letter). The candidate must have the right to work in the UK.

Who we are

Ethical Screening is a small research firm, based in Cheltenham, which has been providing client-focused research and analysis since 1998. We are run by a dedicated team with a wealth of experience in the ethical investment, environmental, social, and corporate research fields. Our clients include Financial Advisors, Investment Managers, charities and trusts, as well as individuals. The research we provide includes negative screening, ESG analysis, and SDG alignment. Our continually expanding research is delivered in a range of formats, including our online Portal which houses a database of over 1,000 companies and a fund database of UK responsible investment funds, alongside tools to assist investment managers and IFAs with their clients

Qualifications/Experience

Our ideal candidate:

§  Will be able to demonstrate relevant skills and experience in the areas outlined above via previous roles or other relevant qualifications/courses (including those changing career or returning to work);

§  Will have previously worked in research, analysis, or database-related roles;

§  Will have a degree relevant to the role, in whole or part (via modules chosen or dissertation).

We are open to all those interested and will consider both experienced candidates and recent graduates.

Skills

§  Be thorough and methodical, with excellent attention to detail and an enquiring mind-set;

§  Able to work efficiently through a varied work-load, with minimal supervision;

§  Able to work as part of a team, sharing information and ideas;

§  Able to remain impartial and separate personal views from those held by clients;

§  Willing to attend conferences, network, and represent the company in work events;

§  Have good business English for both written and oral communication;

§  Be a fast learner and be willing to contribute to other areas of our work, such as product development.

Our benefits include:

·        Non-contributory pension scheme of 8%

·        20 days (FTE) annual leave plus bank holidays, with one day added each year up to 25 days

·        Smart working arrangements (hybrid office/home working)

·        Flexi hours (leave early on a Friday!)

·        Participation in profit-share (not guaranteed)

·        Competitive salary (based on relevant experience)   

How to apply

Send a copy of your CV by This email address is being protected from spambots. You need JavaScript enabled to view it. to Elina Vikmane

Deadline 

9am Tuesday 3rd January 2023

Morningstar: Asset Managers Start Adopting Policies Around Biodiversity

This is Mother Nature’s year. For both policymakers and investors, preserving biodiversity and halting nature loss are starting to go hand in hand with tackling climate change.

Already, an increasing number of asset managers, including two of the largest five globally, have adopted policies around biodiversity. Expect to see more, as the forthcoming COP15 biodiversity conference, due to start on Dec. 7 in Montreal, focuses attention on preserving nature.

It remains rare to find funds that specifically target biodiversity and natural capital as an investment theme. At the time of writing, there are 14 such funds in Morningstar Direct, representing USD 1.6 billion of fund assets.

AidEnvironment/CRR: JBS, Marfrig, and Minerva Unlikely Compliant with Upcoming EU Deforestation Law

The upcoming EU Deforestation Regulation will have an impact on JBS, Minerva and Marfrig. A sample of 12,461 direct and 26,572 indirect suppliers of these key meatpackers shows recent deforestation that may end up in the European Union’s (EU) beef and leather consumption markets. Any deforestation after the proposed December 31, 2020 cut-off date would be non-compliant with the upcoming law.

Key Findings

• Meatpackers JBS, Marfrig, and Minerva will need to comply with the upcoming EU Deforestation Regulation once it is passed and implemented.
• A sample of their suppliers provides information on Brazilian beef production hotspots linked to the EU market.
• CRR found conversion of 72,663 hectares (ha) in the sample since the cut-off date.

RBC GAM: The future of water

Many global manufacturing sectors are hugely reliant on water and water scarcity, water pollution, low water tariffs and geopolitical tensions and droughts are issues that can hugely affect industries in emerging countries. There is also growing concern among the public that large industrial concerns which use up to 30% of the planet’s fresh water should be more vigilant about their consumption.

The UNPRI postulates that water is a finite shared resource, as well as a basic human right. Yet, increasing demand, climate change and pollution are putting pressure on global water resources.

In the full report below, Veronique Erb, Portfolio Manager, considers three important questions to help address the future of water:

• What water issues do we face?
• Which industries are most affected?
• What questions on water usage should we be asking the companies in which we invest?

British International Investment: VentureESG to enhance ESG standards

VC is having a transformative impact on many sectors globally. VC-backed companies have the potential to create large numbers of jobs and deliver impactful services. Integrating ESG practices can help to ensure that the risks and opportunities associated with this transformation are considered in a systematic way. However, the VC industry has lagged behind other asset classes in adopting ESG and it presents a unique risk profile, with typically disruptive business models designed for rapid scale.

VentureESG, a community-based non-profit initiative, was officially launched in July 2021 to promote and tailor ESG practices for VC. Since then, VentureESG has become the leading industry body and thought leader. The community includes over 370 VC fund managers and 100 limited partners.

The collaboration between British International Investment and VentureESG brings together ESG approaches from developed and emerging markets.

Barry Callebaut AG (BARN SE), a leading manufacturer of cocoa, chocolate, and confectionary products, has broadened its impact on the chocolate industry with the release of WholeFruit chocolate, its first chocolate product made from 100% pure cacao fruit.

WholeFruit–with its unique sensory and nutritional profile–directly aligns with Barry Callebaut’s mission to produce quality, healthier chocolate through a more sustainable process.

According to the Upcycled Food Association (UFA), which certified WholeFruit, commercializing cacao fruit worldwide could reduce greenhouse gas emissions by more than 20 million tonnes per year. The goal of WholeFruit chocolate aligns squarely with Barry Callebaut’s sustainability goals; its production aims to reduce food waste by upcycling the cacao fruit throughout the process, using both the seeds and the fresh pulp of the cacao fruit.

Anthropocene FII: An option pricing approach for sustainability linked bonds

Sustainability–Linked Bonds (SLBs) have immense potential as a tool for transition finance. There is, however, rising scepticism among investors over the credibility of SLBs due to their frequent lack of ambition. There is concern that the sustainability targets set by issuers are often insufficient to support a substantial transition.

This paper aims to encourage issuers to set robust sustainability targets when structuring SLBs because ambitious and transparent SLBs can and should deliver an attractive cost-of-capital compared to traditional bonds.

JobPost: Global Sustainability Manager (Manchester | CloseDate: Unknown)

JobPost: APG - Quantitative Equity Research, ESG Alpha Specialist (Amsterdam | CloseDate: Unknown)

JobPost: FTSE Russell - US Capital Markets Reporter, ESG (New York | CloseDate: Unknown)

JobPost: FTSE Russell - Primary Market Regulation Senior Manager (London | CloseDate: Unknown)

JobPost: FTSE Russell - Global Solutions Sales Director, Sustainable Finance (London | CloseDate: Unknown)

JobPost: Schroders - Sustainability Analyst, Private Equity (New York | CloseDate: Unknown)

JobPost: Schroders - Sustainable Credit Analyst (Frankfurt/Europe/Middle East | CloseDate: Unknown)

JobPost: Schroders - ESG Integration Analyst, FTC 12 months (London | CloseDate: Unknown)

Do credit markets price scope 3 emissions?

Reporting on greenhouse gas emissions has historically been focussed on scope 1 and 2 emissions. But regulators and voluntary disclosure standards increasingly focus on scope 3 emissions that make up the majority of all emissions. With scope 3 emissions being a relatively new concept, one has to wonder if credit markets are pricing these risks or if they largely ignore them.

One of the problems of ESG indices is that they typically focus on scope 1 and 2 greenhouse gas emissions to decide on the companies that are included in an index. However, once emissions are broadened to scope 3 emissions, then the emissions advantage of ESG indices disappears quickly, as I have discussed here.

...

HSBC: COP15 on Biodiversity - Marine ecosystems and NbS

• Despite significant reliance on ocean and coastal services, human activities are threatening marine ecosystems
• Through nature-based solutions (NbS), humans can work with marine ecosystems to maximize benefits and minimize risks
• Marine and coastal biodiversity has been an early priority for COP and will be a major topic of discussion at COP15

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 18th report in HSBC’s biodiversity mini-series in the run-up to COP15.

The importance of marine ecosystems in the CBD: Marine conservation efforts will be in the spotlight of the Conventions of Biological Diversity (CBD) at COP15, given they feature in several draft targets of the new framework. Covering >70% of earth's surface, oceans and coastlines support a myriad of ecosystems with rich biodiversity, which play an essential role in sequestering carbon, regulating climate, providing food and medicine, and supporting human health and well-being. However, the marine environment is being degraded and destroyed as a result of coastal development, pollution, and climate change.

As COP15 discussions focus on adopting The Post-2020 Global Biodiversity Framework (20 September 2022), HSBC expect settling on target 3 - to protect at least 30% of global land and sea area by 2030, to be high on the agenda. Despite the early priority of marine ecosystems by the CBD, the UN Environment Programme estimates that only 7.7% of coastal areas and oceans are designated as protected areas (figure 1).

NbS gaining ground: Nature-based solutions (NbS) for marine ecosystems include conservation, restoration, and management efforts by groups like the CBD, and can help regenerate the marine services that people rely on, from food to coastal protection to climate stability. While implementing NbS has been largely driven by the public sector, HSBC believe private investments will be crucial to marine NbS uptake. They think COP15 discussions can help guide public and private participation in NbS to reduce biodiversity threats to our oceans and coastlines.

ESG Book: Mind the carbon gap 

“There are as many frameworks as there are disclosures” is a common phrase at ESG Book. It’s not without reason; the number of climate-related regulations and frameworks that companies and investors are expected to adhere to seems to grow by the day. Greenhouse gas (GHG) emissions data is essential for financial market participants to understand corporate alignment to various climate pathways, stress-test climate scenarios to identify transition risks and opportunities, and to engage with and hold companies accountable on their progress to meet their net zero targets.

In response, ESG Book has developed the Emissions Estimation Model through a best-in-class machine learning approach to provide investors, together with other financial institutions, with greater transparency around the emissions of tens of thousands of companies worldwide.

Covering over 37,000 corporations globally, the Emissions Estimation Model estimates scope 1, scope 2 and scope 3 emissions for each company using independent, industry-leading models which incorporate the latest research on emissions estimation.

Comprised of over 800 sub-models, each developing relationships between available company-level data and emissions for a given industry, geography and emissions scope, ESG Book’s model uses 15 of the most relevant and commonly-disclosed predictors of emissions to better constrain the accuracy of the estimations.

Hydrogen equipment manufacturers appear to be on the brink of a phase of rapid growth driven by global demand for electrolysers, the core energy conversion devices that split water into hydrogen and oxygen. But there is also uncertainty on the outlook for profitability due to a range of possible future market developments. At this juncture, hydrogen equipment manufacturers are caught between a highly uncertain profitability outlook (triggering fear) and a potentially promising growth story (instilling hope).

Making sense of electrolyser manufacturers:

• Societe Generale's analysts think the latest surge in interest in hydrogen (H2), which has been bolstered by strong policy support (including public funding) for ‘green’ H2, should have some legs. This comes as green H2 – produced from renewable energy sources – is seen as a lever to mitigate climate change. Meanwhile, the spread between green and fossil fuel-derived hydrogen production costs has narrowed (or even reversed in some cases) amid the current global gas market tightness.
• As such, green H2 pure plays, including electrolyser manufacturers and fuel cell technology providers, have attracted significant attention from the investment community despite their (relatively) small market size and the (high) uncertainty as to their prospects for profitability.

Human beings have emitted more than 1.5 trillion tons of CO2 since the industrial revolution, the majority of which have come from today’s industrialized economies. The effects of climate change, however, are distributed regressively. Poor countries have less ability to pay for the consequences of climate change and are less able to bear the incremental financial cost of a decarbonized social and economic development path. Indeed, some of the most carbon-intensive industries have migrated to emerging economies during the past few decades.

At COP26, rich country governments recognized this issue by signing the ‘Just Transition’ declaration, which emphasizes the role of the world’s developed economies in supporting developing countries to transition to a net zero future while meeting their socioeconomic development priorities.

Despite these pledges, current resource transfers from rich country governments – either directly, via trust funds to which rich countries have contributed, or through the multilateral development banks they fund – are insufficient to finance the achievement of the sustainable development goals by 2030

As global demand rises for the limited number of executives with sustainability skills and credentials, expect that such jobs will demand a premium in compensation.

Of the 28 labor-related resolutions voted on during the 2022 proxy season, seven received majority support, while a further nine received significant minority support, defined as at least 30%.

Hodgson's Choice: Should it be ESG&C?

Thefts of personal information during a cybersecurity breach erode trust on the part of customers investors, employees and other stakeholders, demonstrating the link between cyber risk and social risk.

Disclosures on cybersecurity practices for the S&P 500 and the remainder of the Russell 3000 are inching forwards in the face of increased expectations to be introduced by the Securities and Exchange Commission (SEC) in early 2023, though not in every instance.

JobPost: PRI - Academic Network Coordinator, 12-month Fixed Term Contract (London | CloseDate: 6pm 8 January 2022)

PRI's research programme supports and develops innovative responsible investment research, showcases research findings for an investor audience and convenes a vibrant, global community of or 12,000 academics and investors through the Academic Network. 

The successful candidate will support the development and day-to-day management of the PRI’s global Academic Network, related resources and their communication. 

This 'tear sheet' from WBCSD guides investors relations officers on how to host effective sustainable investor roadshows and capital markets days and showcases Mercedes-Benz Group's recent sustainability-focused Capital Markets Day.

This 'tear sheet' from WBCSD guides investors relations officers:

• About (sustainable) investor information needs and uses
• How to develop a sustainable equity story
• How to focus on key metrics

... and features a case study on business transformation communications at PMI

HSBC: COP15 on Biodiversity - Biodiversity & health

• Human health and well-being services are increasingly being impacted by the decline in biodiversity
• And these linkages to health are being recognised across disaster risks, disease, nutrition, medicine, air & water quality
• A Global Action Plan for Biodiversity and Health is expected to be adopted at COP15

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 17th report in HSBC’s biodiversity mini-series in the run-up to COP15.

Biodiversity and health are interlinked: Through the crucial role that biodiversity plays in supporting ecosystems and delivering ecosystem services, human health and biodiversity are closely connected. The services produced by biodiverse ecosystems, such as food, clean air, medicine, natural disaster risk reduction and spiritual values, fundamentally influence the mental and physical health of human populations.

Global focus: Today there is increased recognition that the unprecedented rate of biodiversity loss is a risk to the health and wellbeing of our society. The COVID-19 virus has highlighted the relationship between biodiversity and health around infectious diseases and the resulting global shutdown brought the unequal distribution of nature and biodiversity into focus (see Environmental Inequality, 14 March 2022). The One Health approach, which works to achieve health outcomes through recognising the relationship between people, biodiversity and their shared environment, is being adopted by many international and subnational parties.

Moving forward: Biodiversity is integral to development sectors that modulate health outcomes, such as pharmacy, biochemistry, biotechnology, tourism and agriculture. Additionally, biodiversity's health benefits can help reach Sustainable Development Goals (SDGs), with Goal 3 being "Good health and well-being". Strategies like nature-based solutions (see The role of nature-based solutions, 24 October 2022), which include urban green spaces and regenerative agriculture practices, can help find harmony between people and nature. HSBC think COP15 conversations around the Global Action Plan for Biodiversity and Health, can help push policy, strengthen collaboration and increase focus and education on sustainable practices.

JobPosts: 40+ @ ISS ESG

As of 1/12/2022, ISS ESG are advertising 40+ job opportunities in the ESG/SRI space found here

20+ in Client Coverage (London, USA (Multiple), Hong Kong, Toronto + Others)

10+ in Data Services (Frankfurt, Stockholm, Tokyo, Sydney + Others)

5+ in Research (Hong Kong, Tokyo + Others)

5+ Other (New York, Hong Kong + Others)

Including (amongst others):

Head of ESG Research, Market Specialist Japan (Tokyo | CloseDate: Unknown)

ESG Analyst, Sustainable Finance (Hong Kong/Tokyo/Canberra/Sydney | CloseDate: Unknown)

ESG Index Integration Analyst (New York | CloseDate: Unknown)

ESG Research Analyst, Energy & Extractives (Norman,USA | CloseDate: Unknown)

Product Manager, ESG Data Solutions (Toronto | CloseDate: Unknown)

HSBC Global Asset Management: A Just and Inclusive Climate Transition: An Investment Stewardship Perspective Q4 2022

The purpose of this paper is threefold:

• To provide a human-centric perspective on the climate transition, examining the impact on various stakeholder groups
• To provide a blueprint for both companies and investors to better assess the risks and opportunities posed from the just transition, allowing for the incorporation of these considerations as objectives within their climate strategy
• To guide investors to engage with stakeholders who have an instrumental role to play in fostering an inclusive transition

Highlights and key take-aways from the GSCI 2022

• Scandinavia continues to top the ranking: Sweden is leading the Sustainable Competitiveness Index, followed by all other Scandinavian nations. Only Switzerland on 3rd is breaking in.
• Only two countries in the Top 20 are not European: – Japan on 10, and South Korea (12).
• The USA is ranked 30, ranking particularly low in resource efficiency and social capital – reflecting the nation’s current problem areas
• China is ranked 31 – very strong in Intellectual Capital, but low on Natural Capital and in Rsource Efficiency
• The UK ranks 7, Germany 15, France
• Brazil is ranked 46, India 120, and Nigeria (Africa’s most populated country), 126.
• Some of the least developed nations have a considerable higher GSCI ranking than their GDP would suggest (e.g. Nepal, Buthan, Bolivia, Suriname,  …)

SDG Impact Japan: ESG in Japan: Challenges and opportunities 

ESG Opportunities and Challenges for Japanese Companies:  Japanese companies have long been known for their long-termism, and for adopting purpose-driven missions that consider stakeholders’ benefits in their business activities.

The country is home to more than 40 percent of the world’s companies with over a hundred-year-old history. And the government continues to increasingly promote ESG and sustainability through incentives and regulatory moves.  Japan is in a sense reaching an ESG tipping point.

As of 30/11/2022, MSCI are advertising 36 job opportunities in the ESG/SRI space found here

27 in Client Coverage (New York, London, Milan, Hong Kong, Chicago + Others)

4 in Data Services (Frankfurt, Stockholm, Monterrey, Sao Paulo)

3 in Research (Frankfurt, Boston)

2 Other (New York, Budapest)

Including (amongst others):

Senior Associate, Strategic Product Finance (New York | CloseDate: Unknown)

Real Assets Data Operations Associate (Stockholm | CloseDate: Unknown)

ESG Sales Specialist (Singapore | CloseDate: Unknown)

ESG Market Expert Senior Associate (São Paulo | CloseDate: Unknown)

ESG Consultant (Sydney | CloseDate: Unknown)

JobPost: J.P. Morgan/Campbell Global - Impact and Sustainability Director (Portland | CloseDate: Unknown)

JobPost: J.P. Morgan - CCB, Environmental, Social & Governance (ESG) Controller and Quality Assurance Manager, Executive Director (New York/Columbus | CloseDate: Unknown)

JobPost: J.P. Morgan - VP, ICB F&BM, Investment Banking Strategic Finance Business Management  (New York | CloseDate: Unknown)

Ahead of COP15, IRRI (for Independent Research in Responsible Investment) has published guidance for companies on which investors are interested in and allocating capital based on the issues of biodiversity and biotic natural capital.

Having used this guide to identify investor interest, we advise companies to:

• Shape messages (on their exposure to and management of nature and biodiversity issues)
• Reach out to asset managers (having first identified the individual analysts with specialist responsibility)
• Reach out to sustainable investment research providers - with the same interests

(Note: Any asset managers that would like to edit their firm's profile and/or add their firm's commitments and activities to future iterations of this guide should contact This email address is being protected from spambots. You need JavaScript enabled to view it.)

JobPost: J.P. Morgan - Environmental & Social Governance (ESG) Business Controls, Global Governance Control Manager Associate (Bournemouth | CloseDate: Unknown)

JobPost: J.P. Morgan - Latin America & Canada ESG Business Manager(Sao Paulo/Buenos Aires | CloseDate: Unknown)

Global Canopy’s Deforestation Action Tracker monitors financial institutions with significant climate commitments including those in Race to Zero and Glasgow Financial Alliance for Net Zero (GFANZ), to track their action on deforestation and associated human rights abuses.

Summary

• The baseline is low: very few financial institutions are already acting on deforestation, conversion and associated human rights abuses. A fifth (20%) have set a single commodity-specific deforestation policy. For the four key associated human rights abuses, just one has policies in place for all four commodities.
• A major shift in approach and leadership is required across the financial sector if commodity-driven deforestation is to be eliminated by 2025 in line with commitments made at COP26. The tools are available and some financial institutions are showing what is possible.
• From 2023 to 2025, Global Canopy will be carrying out a full assessment and ranking of progress of these financial institutions, assessing against the best practice for financial institutions exposed to deforestation risk.

• Climate change and political will
• Natural capital 
• Cost of living and other social stresses
• Active ownership and impact
• Regulation

For those of us focused on sustainability in the investment industry, the last few years have felt incredibly busy. 

Keeping up with the scale and pace of regulatory change has been challenging enough. 

Developing the analysis, the models and adapting our engagement with portfolio companies to reflect our deepening understanding of the implications of structural social and environmental trends in the expanding volume of ESG data, all adds to those demands. 

None of this is going to change in 2023.

“RepRisk Geospatial Analytics is ground-breaking for investors. It is essential to understand where companies own and operate assets before it is possible to understand the potential biodiversity related risk of an investment.” said Edward Ellis, Business Manager at IBAT Alliance. “RepRisk links assets on the ground to owner and operator companies, enabling investors to better understand aspects of their nature-related risk. When combined with the existing risk information in RepRisk’s ESG Risk Platform, investors are able to analyse biodiversity in the Environmental pillar of ESG in an even more multi-dimensional way.”

A preliminary analysis of RepRisk Geospatial Analytics reveals that:

• Approximately 32% of natural and mixed UNESCO World Heritage sites are currently within 1km of an extractive project.
• 52% (470 out of 900) of Alliance for Zero Extinction Sites, which are home to the last of some of the world's most threatened species, are within 10km of an extractive project.
• Approximately 8,400 or 81% of Oil and Gas pipelines worldwide are within 10 km of at least one environmentally sensitive site.

Governments might not be pricing carbon, but the planet is. In the US alone, 338 weather and climate disasters since 1980 have cost $1 billion or more for fire suppression costs, physical damages and time element losses, among other costs. All told, these 338 events cost more than $2.275 trillion, an estimate that does not account for natural capital or environmental degradation, mental or physical healthcare-related costs, the value of a statistical life (VSL), or supply chain and contingent business interruption costs.

Of course, damage from natural disasters—and its associated costs—will always be inevitable to some extent, but the scientific consensus is that carbon emissions are the main driver of climate change, which in turn plays a significant role in intensifying specific weather and climate events. So even if investors and businesses might not pay governments for the carbon they emit, they may ultimately pay for it by other means.

Fortunately, a path forward exists, one that allows the private sector to reduce these costs by accelerating their net zero commitments and government targets. The path starts with low- or no-cost energy efficiency measures, and then moves to deploying renewable energy at scale.

Lazard Asset Management: Taking Action on Climate Change

Does investing in climate-aware strategies come at the expense of maximizing returns? What is really driving the increased demand for climate-aware investing, and how can investors navigate the space in pursuit of potential alpha?

In Lazard's view, active investors who not only invest in climate solutions providers, but also use bottom-up, fundamental research to identify the most attractive businesses among them, will be best positioned to outperform. This paper discusses the imminent risks of climate change, stakeholders’ requisite responses to those risks, the growing universe of strategies designed to invest in a climate-aware manner, and why Lazard believes climate solutions providers are the most attractive opportunity.

In the years since the Paris Agreement, the corporate world has built a dense network of net zero and climate risk frameworks and standard-setting agencies. Notably absent though, are standalone frameworks for emerging markets, in both a corporate and sovereign setting, seemingly in contradiction of the Paris Agreement’s commitment to common but differentiated responsibility and respective capabilities.

In this paper, Lazard Asset Management will set out our perspectives on adapting and adjusting existing net zero frameworks to accommodate emerging markets, corporate and sovereign decarbonization, and emerging markets climate engagement. Without considering these distinctions, investors risk implementing strategies that will result in a systematic rebalancing away from emissions-intensive emerging markets assets, and even emerging markets overall which could result in portfolio decarbonization, rather than real-world decarbonization.

Aviva Investors: ESG considerations for social housing

The UK is in a housing crisis; that much is widely acknowledged and understood.

The problem has been exacerbated by the COVID-19 pandemic and its impact on workforce availability, as well as the lack of construction materials. There are not nearly enough new homes being built to meet demand as populations grow.

However, simply increasing the supply of housing will not address the whole problem or benefit those members of society most in need. Crucially, the undersupply of social rent housing urgently needs to be addressed.

Social housing investments can deliver significant positive societal impacts, particularly for low- to middle-income households. When done well, investment in this sector can support governments’ affordable housing programmes and targets by delivering housing to disadvantaged or vulnerable groups, individuals and households. But investors considering an allocation to the asset class must pay close attention to the ESG implications.

Download ‘ESG considerations for social housing’ to understand:

• Why the UK faces a social housing crisis
• The ESG investment case for social housing
• How to approach the financial, social and reputational risks

Aviva Investors: Building better: Investing in the climate transition through real assets

The accelerating climate transition has important implications for investors in real assets. After all, the built environment is a major contributor to climate change: around 37 per cent of global carbon emissions are associated with the construction and maintenance of buildings. Inefficient, carbon-intensive real assets are likely to be affected by new green regulations and shifting demand patterns over the coming years. They may also be vulnerable to the physical risks of climate change, from extreme heat to floods and wildfires.

But real assets also have a crucial role to play in tackling the climate crisis. The Aviva Investors Climate Transition Real Assets Fund (CTRAF) aims to make a tangible difference to the environment while also delivering key portfolio benefits for clients. We can do this by proactively decarbonising existing assets; acquiring and developing new, climate-friendly real estate; developing new infrastructure assets, including fibre broadband and electric vehicle (EV) charging networks; and by identifying opportunities to capture carbon via nature-based solutions.

Download ‘Building better: Investing in the climate transition through real assets’ to understand:

• How the climate transition is creating opportunities for real assets investors
• The portfolio benefits to be gained from investing in real assets aligned to the climate transition, including diversification, illiquidity premia and uncorrelated returns
• How direct investors in real assets can influence the carbon impact of their portfolios by reducing, avoiding and removing emissions

Aviva Investors: Confronting a permacrisis: The intersection between antimicrobial resistance, climate change and biodiversity loss

Will a warmer and less biodiverse world give pathogens new opportunities, and do we have the tools to confront disease?

This report discusses the complex intersection of three planetary crises and calls for urgent action to slow resistance to antimicrobial drugs – an obvious public health emergency.

Download ‘Confronting a permacrisis?’ to understand:

• Why existing antimicrobials are becoming less effective
• The complex ways in which the climate and biodiversity crises are impacting the spread of pathogens, and why we need to ensure effective disease response
• Why failing to address the permacrises will come at a high cost, in terms of lives lost and value destruction

At a glance:

• Given lack of education on the history of Canada’s relationship with Indigenous peoples, everyone, including investors, has a responsibility to close that gap as a key action towards reconciliation.
• Summarises key concepts and events from Canada’s history with Indigenous people that are relevant to investors and corporates to inform practices in support of reconciliation action.
• Explains how Indigenous reconciliation is central to BMO's responsible investment actions and provide suggestions for further learning.

Candriam: Biodiversity: Next Frontier in Sustainable Investing? 

The planet’s biodiversity – the variety of species of animals and plants – is collapsing. It is falling at the speed from tens to hundreds of times higher than it did, on average, over the past 10 million years. It is also accelerating.  The flora and fauna are the engines of every ecosystem providing our civilization with clean water, the air rich in oxygen and nutritious food. We now take from our planet 56% more than it can regenerate but a lot of these resources are wasted to overconsumption.

About half of the global GDP (about USD44 trillion of its value) is highly dependent on nature. Together, the three largest sectors that are highly dependent on nature generate close to USD8 trillion of gross value added (GVA): construction (USD4 trillion); agriculture (USD2.5 trillion); and food and beverages (USD1.4 trillion). This is roughly twice the size of the German economy. 

Some companies and investors already take account of biodiversity loss risks but, according to OECD, less than 1% of business models of the 3,500 companies representing 85% of global market capitalisation align with SDGs 14 and 15. To have real impact we need a focused approach, which can be used consistently across sectors and geographies, by companies and investors alike. The lack of a relevant and easily measurable metric/indicator for biodiversity (like carbon emissions for climate change) is definitely the key difficulty in accounting for biodiversity fully in business and investment decisions.

A big question – still unanswered fully – is how to measure companies’ impact and dependency on nature?