Investor coalitions

Last week Ryan Mangold - FirstGroup CFO, sat down with Chris Armstrong, the ESG analyst at Berenberg to discuss the company's sustainability journey and its recently published Climate Transition Plan. Please find a link to the video recording of the interview and accompanying slides.

In 2024, the European Union took a bold step toward climate action by finalizing its methane regulation, a first-of-its-kind measure to curb one of the most potent greenhouse gases. The law aims not only to cut emissions, but to restore accountability to the energy sector and align Europe’s fossil fuel supply chain with its climate responsibility. That vision wouldn’t have been possible without pressure from the global investor community.

But the job isn’t finished.

Part of the fossil fuel industry is now pushing to delay, dilute or distort the implementation of the EU Methane Emissions Regulation. For this historic law to deliver the methane reductions it was designed to achieve, investors must remain engaged. Their voices — trusted in both boardrooms and ministries — are essential to resisting attempts to weaken the regulation and preserving its ambition.

Catch the AI wave: water risk in big tech

Access to usable fresh water is fundamental to livelihoods, health, ecosystems, and the global economy. Water-related natural hazards such as floods and droughts can have such devastating effects that we believe that water-related risks and opportunities can be financially material factors that need to be increasingly integrated into technology sector decisions and the investment strategies that support them.

"As we cross the midyear mark for 2025, we may take some lessons from a volatile first half, looking to adapt with the changing investment landscape while staying focused on our long-term goals. As disruption reshapes global markets, investors are turning to active management to deliver value and capture opportunities for outperformance—80% of investors say they are more likely to increase their use of active approaches in the year ahead, according to Schroders Global Investor Insights Survey 2025.

Themes driven by changes in technology and society’s structural needs can add value for investors over time as these thematic investments are designed to benefit from this change.

As we see it, sustainable investment is as much about identifying opportunities over the long term as it is about mitigating risk. Recently, I hosted a webinar discussion with three Schroders portfolio managers—Alicia Alisa Craig, Marek Poszepczynski and Paddy Flood—on major thematic investment opportunities: changing demographics, technological innovation and the energy transition. These themes are examples of thoughtful, research-based investing at the intersection of society’s evolving needs, in innovative companies poised for growth."

"PIMCO’s Sustainable Investing Report provides our latest thinking on sustainability. Here, we highlight the report's key takeaways, including how we are advancing our analytical capabilities."

"The global energy landscape continues to evolve, and nuclear is emerging as a critical player in the energy transition. With recent policy shifts and growing energy demands—as we explored in our last newsletter on sustainability trends to watch—nuclear presents unique potential to provide reliable power while reducing carbon emissions. 

In this newsletter, Alexei Viarruel, Executive Director, Global Natural Resources, Investment Banking at J.P. Morgan, shares valuable insights into the revitalization of U.S. nuclear energy, reflecting on challenges and opportunities within the sector.

Also in this update, we showcase innovative companies in industries across the green economy, from sustainable foods to energy storage."

Key Takeaways

1 - "What Happened and Why: The performance of sustainable funds has seen ups and downs in recent years. Analysis of the data shows that this dynamic was often driven by funds’ style and sector tilts rather than anything intrinsic to sustainability itself.
2 - Focus on Performance: We think performance will be the key driver of sustainable-investing market growth in the years ahead, with investors increasingly focused on linkages to alpha, value creation and the fundamentals of investing.
3 - Investing at the Intersections: The underlying secular themes driving the transition to a low-carbon economy are resilient, in our view. Investment opportunities may be found at the confluence of factors such as rising power demand, higher temperatures and aging infrastructure."

I have written before about the wedge in conviction about the importance of ESG to investment decisions. The closer you come to the sell side, the less analysts care about climate change and ESG considerations. So far, this impression has been chiefly based on anecdotal evidence, but Jesse Chan provides some numbers that are indeed alarming.

Chan trawls through 526,740 analyst reports on US companies issued by 2,627 analysts between 2009 and 2020. Note that this period coincides with the rise in ESG awareness and does not include the recent backlash against ESG, during which climate change-related discussions in analyst reports are likely to have declined again.

However, even during these days of growth in climate change-related discussions, only one in ten analysts included climate change-related topics in any of their analyses, and only one in a hundred reports did so, rising to 1.4% of reports in 2020. In all honesty, I find these numbers shockingly low.

In the past, the focus of professional ESG investors was on getting better disclosure and increased transparency of a business’ environmental and social practices. As transparency improved, the focus increasingly shifted to concerns about greenwashing activities. Today, a company that engages in misleading communication about its environmental or social practices will be punished by investors. But how significant is the effect of this punishment in practice?

To find out, the authors of a new study examined more than 5,000 cases of greenwashing uncovered by RepRisk between 2007 and 2022. The study focused solely on the 12 largest developed stock markets to ensure that these markets were sufficiently transparent, with high standards of corporate governance and a large share of institutional investors. The chart below shows that more than half of all incidents of greenwashing were attributed to US companies. UK companies are the second most common culprits.

Focal Points:

• "The Sustainability Report 2024 includes the company's inaugural Climate Transition Plan. The Climate Transition Plan, which outlines our transition approach and action plan for decarbonising the business while developing related opportunities and includes existing as well as new targets.
• We met all climate-related targets for the year and made progress towards targets beyond 2024. For example, we increased the share of gross written premiums from companies with science-based targets validated by a third party in our single-risk re/insurance and further reduced the greenhouse gas (GHG) intensity of our corporate bond and listed equity portfolio (covering Scope 1 and 2).
• In addition, our absolute GHG emissions from business air travel remained more than 60% below their value in 2018."

Parameters:

• Data to: 31 December 2024
• Published: March 2025 (assurance date)
• Materiality Matrix: DMA details p17
• ESG data centre: Sustainability data here

Focal Points:

• GHG EMISSIONS (SCOPE 1 AND 2)  -10.3%
• LOST TIME ACCIDENTS PER 1,000 FTEs - 36.6%
• SHARE OF WOMEN IN GROUP MANAGEMENT  25.0%

Parameters:

• Data to: 31 December 2024
• Published: Feb 2025 (assurance date)
• Materiality Matrix: DMA to be published in 2025 reporting year.
• ESG data centre: Sustainability data here

Focal Points:

Targets and results:                                                                                                                           

• Maintain the frequency rate (Fh) Lost Workday Cases (LWDC) at or below 1.5    1.7
• 30% share of women in senior leadership positions by 2030     21%
• Technology and innovation for sustainable building design > 50% connected units by 2025 compared to total maintenance portfolio of elevators, escalators, and moving walks      40%     
• Energy management and climate change – 100% renewable electricity by 2025     99%

Parameters:

• Data to: 31 December 2024
• Published: Feb 2025
• Materiality Matrix: p131
• ESG data centre: Sustainability data here

Focal Points:

• In pursuit of its 2030 net zero target for Scope 1 and 2 emissions, Samsung’s Device eXperience (DX) Division recorded a renewable energy transition rate of 93.4% as of the end of 2024. By applying high-efficiency energy technologies across seven product categories, it reduced average power consumption by 31.5% compared to 2019. Additionally, the DX Division signed new solar power purchase agreements (PPAs) at its Gumi and Gwangju sites to diversify renewable energy sourcing.
• As part of its goal to apply recycled materials to all plastic components by 2050, Samsung incorporated recycled content into 31% of the plastic parts used in its products as of 2024.
• In 2024, the company conducted human rights risk assessments across Asia, Europe, Latin America, North America and the Middle East to identify and address key concerns. Based on stakeholder input from international organizations, NGOs and academia, Samsung developed and implemented a human rights risk management plan.

Parameters:

• Data to:  January 1st to December 31st, 2024
• Published: June 2025 (Annual reporting cycle – previous edition published in June 2024).
• Materiality Matrix: See p7
• Sustainability Performance data centre: Not found

RepRisk data reveals two-thirds of fashion supply chain risks are social

• Among all sectors, retail is by far the most exposed to supply chain risk, with incidents more than doubling globally since 2020 and rising by 22% in the past year alone.
• Over the past five years, social risks have accounted for about two-thirds of all incidents globally in each fashion segment: fast, premium, and luxury.
• Human rights and poor working conditions drive the majority of social risk incidents in the global fashion sector.

In today’s global economy, supply chains are not just operational backbones – they are strategic assets that directly impact business continuity, profitability, and corporate reputation. As supply chains extend across borders and involve layers of subcontractors, responsibility becomes increasingly fragmented. This opacity introduces significant exposure to business conduct risks. These risks can arise from unethical, illegal, or irresponsible behavior by a company or its employees – such as biodiversity degradation, forced labor, or greenwashing – and can result in serious consequences, including regulatory penalties, compliance breaches, reputational damage, and financial loss. Beyond the harm to the environment and society, the fallout can shake investor confidence and expose banks, asset managers, and insurers to financial and reputational risks.

This report presents key findings and insights from RepRisk’s analysis of data on supply chain risk exposure, with a particular focus on the fashion sector. Due to its vast scale, complex supply chains, and dual role as both a producer of essential goods and a major employer in many regions, the fashion industry represents a critical focal point for supply chain risks.

“Fashion’s supply chains have never been easy – and today’s global pressures make them even tougher. It is time for transparency! Daily monitoring powered by data that effectively combines human intelligence with AI – through fine-tuned models trained on human-labeled data – enables fashion and other companies not only to build resilient value chains but also to maintain stakeholder trust and drive long-term performance.”

Philipp Aeby, CEO and Co-founder at RepRisk

Read the press release

The UNFCCC meetings in Bonn that ended recently resulted in some modest optimism, with the release of an informal note on Just Transitions by the co-chairs to be further discussed at COP 30 in Brazil in November 2025. Progress has been relatively slow on the United Arab Emirates Just Transition Work Programme, but it fills an important gap in the global climate transition that completements efforts by financial institutions, especially at the domestic level.

On a global level, both the Loss & Damage Fund launched at COP27 and the Just Transition Work Programme (JTWP) launched during COP28 are premised on the idea that the benefits and costs associated with the emissions released into the atmosphere, and the consequences of climatic change, are not shared equitably.

Countries that benefited little if at all from historical emissions are likely to be impacted most by the physical impacts of climate change. Likewise, many of those impacted the most by the dramatic economic changes associated with the climate transition have not benefited proportionately from the emissions that necessitated it.

The informal Just Transition draft covers several important topics. It connects the emissions reduction required by the Paris Agreement with corresponding efforts to ensure the costs and opportunities are shared equitably as countries chart out their individual pathways. It also acknowledges that making sure the process by which countries develop their own just transition pathways is effective, inclusive and participatory.

Taking this point a step further, the informal draft lays out expectations that these processes will occur within the UNFCCC process as countries adopt and update Nationally Determined Contributions (NDCs), National Adaptation Plans (NAPs) and Long-Term Low Emissions Development Strategies (LT-LEDS). It will also be developed outside of the UNFCCC process, but throughout will require support on the ‘means of implementation’, including capacity building, technology development & transfer, and climate finance.

For many countries, the informal draft acknowledges “that high debt burdens can hinder those parties in pursuing just transition pathways”. This follows some progress at the Financing for Development Conference in Seville, Spain, in providing better mechanisms for sovereigns to resolve situations involving unsustainable debt levels that can hinder efforts on climate transition. This aligns with calls by the ‘T20’ Task Force to increase the accessibility of finance to support just transitions and avoid financing mechanisms that can increase – rather than alleviate – challenges of a buildup of debt.

Meanwhile, the Just Transition Finance Lab highlights ways in which the country-specific nature of just transitions can allow for substantial progress through ‘closer-to-the-ground’ monitoring. This research builds on efforts underway within the G20 Sustainable Finance Working Group to highlight how emerging & developing countries are incorporating monitoring through domestic policymaking channels. This supplements the measurement of progress with metrics showing whether the process and outcomes are supporting just transition outcomes.

Domestic efforts provide a more localised approach while connecting internationally through climate finance, business ownership, and trade links. The financial sector, through its own transition planning and engagement with its customers, can complement efforts by governments and providers of climate finance by adding a Just Transition focus itself.

It is perhaps more important that efforts from the financial sector to support the Just Transition make progress in parallel with financing green activities and tracking financed emissions. Financed emissions disclosure starts by capturing high-emission companies and layers on additional financed emissions sources within customer value chains, all along the way identifying how to support decarbonization of the economy (and avoid ‘paper decarbonization’ merely of an institution’s portfolio).

Financial institutions’ involvement with the Just Transition requires overlaying the transition planning for an institution and its clients with additional efforts to focus on just outcomes and processes. This is not just a problem that can be solved through a technical solution to collect the right data and make sure it is accurate and used in an effective way.

A Just Transition requires a much more intentional effort to build trust with customers and other stakeholders, which is most effectively built up over time through repeated (even if small) interactions with stakeholders. While the financial sector works with its customers and stakeholders (of both FIs and their customers) to cultivate the relationships and trust needed in the just transition, they should align with the direction of travel both domestically and globally as these efforts bear fruit.

Want to stay updated about the implementation of responsible finance in OIC markets & Islamic finance? Subscribe to RFI’s free email newsletter today!

On 25 June 2025, the Transition Pathway Initiative (TPI), its academic partner the Transition Pathway Initiative Centre (TPI Centre) at LSE and the World Business Council for Sustainable Development (WBCSD), hosted a corporate and investor roundtable as part of London Climate Action work, held at the London Stock Exchange Group (LSEG).

The event brought together more than 80 senior representatives from global companies (mostly in hard-to-abate sectors) and institutional investors for an action-oriented dialogue.

Through facilitated roundtable discussions, participants explored how transition plans, disclosures and assessments can support investor decision-making, influence company valuation and guide the scale and direction of capital allocation. 

Trump's assaults on the Federal Reserve's independence must cease. BankThink - American Banker Newspaper

"Materiality underpins our approach to sustainability and stewardship and is viewed through the lens of three key themes: climate, nature, and people."

"As we look forward to 2025, M&G plc has grouped its activities under two themes – ‘Resilient planet’ and ‘Resilient societies’ – which include the work we do on climate, communities and people, with the addition of nature given its growing importance for our clients and broader society."

Sarasin & Partners is a London-based limited liability partnership offering discretionary asset management services to charities, private clients, intermediaries and institutional investors in the UK and globally. As of 31 December 2024, assets under management were £18.5 billion.

By David Atkin, CEO Principles for Responsible Investment

"Time flies, and we have reached the halfway point of 2025. In my previous blogs, I wrote that responsible investors were facing a volatile and uncertain operating environment, and this has remained the case over the first half of the calendar year.  

From my perspective, the geopolitical environment continues to shift beneath our feet—marked by heightened security concerns in Europe and broader global uncertainties—creating a level of ambiguity that none of us can ignore. Conflicts rage in Ukraine, Sudan and increasingly across the Middle East. Politically, whilst the US context dominates global discourse, recent elections in markets as varied as Canada, Australia, Germany, Romania and Poland resulted in leaders from across the political spectrum taking office. Elections and conflicts, by their nature, generate significant public discussion and media attention. But I believe that responsible investors, with a long-term lens, are looking beyond immediate events, to how they can continue to generate returns for their beneficiaries into the future..."  

"Since the establishment of our Sovereign ESG Methodology in 2019, we have been evolving our approach to evaluating countries’ sustainability performance to support our sovereign bond investment decision process.

Our framework continues to aim to identify countries with leading ESG practices or positive improvement while avoiding systematic bias against developing countries through contexualizing countries’ performance within their stage of development.

We previously highlighted the importance of a comprehensive assessment of sustainability momentum to address data lag and reward countries on a positive trajectory. In our revamped approach, we recognise the limitations of ESG data and stress the importance of supplementing it with qualitative insight and, where possible, active engagement with policymakers, to paint a more complete picture of a country’s management of sustainability risks and opportunities.

By accounting for regional dynamics, income disparities and policy contexts, we can support forward-looking investment decisions."

Key Highlights:

• Physical climate risks are increasingly recognised as financially material, with global economic losses from natural disasters exceeding USD 4tn over the past 50 years. However, only 40 per cent of the USD 280bn in losses from natural catastrophes in 2023 were insured.
• Asset managers have traditionally focused on transition risks, but the growing frequency and severity of physical risks demand enhanced research and integration into investment strategies. Both top-down and bottom-up approaches offer valuable insights for strategic asset allocation and security selection
• A “build or buy” dilemma exists in climate-risk modelling. While in-house models provide transparency and control, third-party solutions offer immediate insights. A hybrid approach, leveraging a continuum of modelling options, can tailor solutions to specific investors’ needs

Climate risk is breaking supply chains.

Are investors asking the right questions?

A look at why indirect exposure could cost more – and how resilience creates opportunity.

About a quarter of the world's adults lack access to affordable, quality financial services - but digital disruption is helping bring them into the formal financial system.

Financial inclusion allows individuals to save and invest, while also supporting entrepreneurship and business growth. And for investors, these developments are opening the door to varied investment opportunities among banks and nontraditional financial services firms.

Key takeaways

• By lowering costs and generating new business opportunities, digital innovations are helping make financial services more accessible to the underserved population.
  Digital connectivity helps nontraditional financial services gain traction in emerging markets (EM).
• In developed markets (DM), banks and financial technology companies extend services to the unbanked and underbanked populations in varied ways.
• Small business lending, once considered one of banking's more challenging business lines, is seeing increased competition from digital disruptors.

Rob Rowe talks with Alternative & Renewable Energy Analyst Vikram Bagri about the role of renewables in meeting the energy needs of the world.

They touch on tariffs and other implications of U.S. policy, dependence on China, the innovation under way in the nuclear space, and the overall market environment for renewables.

Without adaptation, utilities are projected to bear the brunt of the projected costs for companies in the S&P Global 1200 index, according to a new analysis using the S&P Global Sustainable1 Climate Physical Risk dataset.

Companies’ exposure to extreme weather events and chronic climate hazards such as extreme heat, water stress and drought has created significant financial costs across all sectors. These costs are projected to continue climbing, even under a climate change scenario that assumes strong greenhouse gas emissions reduction (SSP2-4.5), absent adaptation.

The total cost of climate physical risk for the world’s largest companies that make up the S&P Global 1200 is projected to reach $1.2 trillion annually by 2050 under this scenario, according to S&P Global Sustainable1 data; this figure assumes no adaptation measures and is not adjusted for future inflation. The highest costs come from extreme heat and water stress.

Utility companies are projected to experience the largest costs from climate physical risk: The average electric utility in the S&P Global 1200 is projected to face $4.6 billion in costs annually in the 2050s, absent adaptation. Importantly, utilities are more advanced than many sectors in terms of adaptation planning.

This report examines issuance trends and the sustainability impact of labelled bonds from sovereigns, supranationals, subnationals and agencies (or public entities) – collectively referred to as SSAs.

The analysis mostly uses Sustainable Fitch’s Environmental, Social and Governance (ESG) Instrument Ratings database, covering 152 SSA entities and 790 individual bonds issued by them.

Sustainable Fitch: Sector Insight: Information and Communications Technology 

The activities of companies in the information and communications technology (ICT) sector have material environmental and social impacts. Highly interconnected supply chains and heavy consumption of energy, water and raw materials underscore the need for effective management of natural resource consumption, greenhouse gas (GHG) emissions and energy efficiency. 

Cybersecurity and customer data privacy also present social and governance challenges, with increased scrutiny from regulators and governments on the frequency and costs of data breaches.

Differing interests between oil and gas companies and chemical producers haves created a structural tension in the petrochemical value chain, with energy suppliers seeking to sell more of their products to an industry that seeks to wean itself off them.

This note draws on recent research from Carbon Tracker and Planet Tracker to highlight this structural tension and the associated risks for each of the two industries. 

"Emissions aren’t the only driver of transition risk for companies. To fully understand the headwinds and opportunities companies face, institutional investors, corporate advisors and underwriters need to consider the full picture.

The economic costs associated with the energy transition are underpinned by greenhouse-gas (GHG) emissions, but manifest through the availability of technology and stringency of regulation. If there are no viable technologies to decarbonize high-emitting activities, or no low-emission alternatives to certain products and services, companies may face fewer economic consequences, at least in the short term.

Against that, regulators may create bans, standards or trading schemes to price emissions and force companies to bear some of the costs of reducing them.

While the energy, utilities and materials sectors face the highest transition risks overall, according to our research, variations in underlying business models and relevant policies drive important differences at the sub-industry and company level."

Preview

"Amid rising trade and climate policy uncertainties, Southeast Asia is emerging as a focal point for risk and opportunity. This report unpacks the “double jeopardy” facing manufacturers operating in the region: escalating physical-climate threats — like floods and extreme heat — and a shifting trade-policy landscape. With nearly a quarter of MSCI ACWI Index (IMI) market cap tied to Southeast Asian manufacturing operations, investors worldwide have a stake in understanding these evolving dynamics.

Drawing on our suite of climate tools, including MSCI GeoSpatial Asset Intelligence and MSCI Climate Value-at-Risk model, our analysis offers a granular, scenario-based view of potential exposures and losses. With trade and climate risks increasingly shaped by jurisdiction- and location-specific factors, asset-level intelligence adds a critical layer of insight for risk-informed decision-making. Additionally, climate-scenario analysis offers a structured framework to explore possible futures and strengthen preparedness.

Discover how local risk hotspots across a global investment footprint could evolve — and what that means for long-term investment decisions."

The Takeaway

• "Now entering our fourth year for the survey, this year’s qualitative phase consisted of a series of live, in-depth interviews with 25 asset owners from across the globe.
• We came away from these conversations with a solid sense for the toughest issues facing this cohort today.
• Common threads included the shifting geopolitical, public policy, and market landscape; ESG regulation and implementation; and the evolution of asset owners’ views on climate investment strategies"

Global events, such as pandemics, wars or sweeping tariffs, can drive market volatility. Looking back at these events is an opportunity to examine data and understand ways to potentially protect investments from these economic shocks. This new research report focuses on three periods of market disruption over a seven-year period – the covid-19 outbreak, the start of the Russia-Ukraine war and the most recent introduction of US tariffs – to examine the link between US firms’ ESG Risk Ratings and their financial performance.

The analysis found that the Low ESG Risk Portfolio consistently shows strong performance, delivering sustained alpha, including during periods of economic shock. These findings suggest that integrating ESG risk consideration into investment decision making can support the alignment of sustainability objectives with effective risk management, while also contributing to the preservation of financial performance.

Readers of this report will learn about:

• The nuanced relationship between ESG Risk Ratings and financial performance.
• How ESG risk-integrated benchmark portfolios can guide investors to manage the trade-offs between financial performance and ESG risk.
• How scenario analysis – in this case, of economic shocks – plays a critical role in refining investment strategies and decision-making processes. 

Non-financial Statement 2024 here

Annual Review 2024 here

Creating Shared Value 2024 here

Featuring more than 25 real-world examples from member companies, this report showcases various approaches for addressing uncertainties in preparing and disclosing sustainability information according to the European Sustainability Reporting Standards (ESRS) and the IFRS Sustainability Disclosure Standards (IFRS S1 and S2). 

Key Challenges 

This report identifies two primary challenges: 

• Navigating Uncertainty: Companies often struggle with the uncertainty inherent in preparing and presenting sustainability information.
• Using Estimates and Assumptions: Disclosing the financial effects of sustainability-related risks and opportunities involves significant use of estimates and assumptions.

The 2024 Lindt & Sprüngli Sustainability Report was prepared with reference to the GRI Standards 2021 and contains selected disclosures from the European Sustainability Reporting Standards (ESRS).

The CSR report forms part of the Annual Report 2024 and is also available as a separate web-based section. It was published in March 2025.

Focal Points:

Selected highlights:

• "Gender: We championed the push to #AccelerateAction on International Women’s Day globally and our inaugural I&B awards in EMEA and Asia Pacific, led by the Women in Experian ERG, included recognition for colleagues of many backgrounds who are accelerating action for women.
• Mental health: We actively participated in World Mental Health Day as part of our annual global Your Mind Matters Week to engage employees on wellbeing topics and raise awareness of the support we offer (refer to page 12).
• LGBTQ+: Our Pride ERGs ran activities across our regions for employees to Come Together for Pride Month (refer to page 13). We also invite our employees to learn more about our LGBTQ+ colleagues"

Parameters:

Data to: 31 March 2025
Published: Not found
Materiality Matrix: See p118 of the 2025 Annual Report for Experian's update on Double Materiality

Sustainability Performance data here 

Annual Report 2025 here

Sustainability Presentation here

Could tensions over trade and changes in U.S. policy shift the eye of climate finance away from the world’s largest economy?

"That’s one possibility suggested by recent flows within climate-themed funds. While U.S.-based companies have historically attracted the lion’s share of investment in these strategies, funds have begun to flow toward opportunities elsewhere in recent months.

Since 2018, U.S.-listed companies have made up a larger share of climate funds than they do of the overall market, averaging 67% in climate funds, compared with 58% in global markets generally (as represented by the MSCI ACWI Index), based on publicly listed funds in our coverage."

Emissions aren’t the only driver of transition risk for companies. To fully understand the headwinds and opportunities companies face, institutional investors, corporate advisors and underwriters need to consider the full picture.

The economic costs associated with the energy transition are underpinned by greenhouse-gas (GHG) emissions, but manifest through the availability of technology and stringency of regulation.

If there are no viable technologies to decarbonize high-emitting activities, or no low-emission alternatives to certain products and services, companies may face fewer economic consequences, at least in the short term. Against that, regulators may create bans, standards or trading schemes to price emissions and force companies to bear some of the costs of reducing them.

While the energy, utilities and materials sectors face the highest transition risks overall, according to our research, variations in underlying business models and relevant policies drive important differences at the sub-industry and company level.

The “oil field paradox” refers to the growing disconnect within industry, where some companies have created and profited from oil wells, walking away before the clean-up bill comes due, while others, who now own the wells, often lack the financial capacity – or the incentive – to clean up, transferring the risk to states, communities and ultimately taxpayers. 

How does a domestic oil industry that generates tens of billions of dollars in after-tax profits annually  leave millions of wells and billions in liabilities at risk of becoming the public’s responsibility? If the government will ultimately pick up the tab, what incentive is there for operators to accelerate plugging activity? 

For years, the majority of global investments in the electricity sector have flowed into renewable energies. At the same time, many countries want to reduce or completely eliminate coal's share in electricity generation.

However, despite the high investments, the contribution of wind power and photovoltaics to the global energy supply is still small.

It is clear that, in the foreseeable future, energy sources are needed that are less harmful to the climate than coal, but more powerful than (weather-dependent) renewables and can complement them well in terms of security of supply. 

"How can investors uncover companies that make a positive impact and also provide a compelling return profile? By following the market.

Our research shows that:

• Changing consumer preferences and demand are driving companies to provide more impactful and responsible products and services.
• Asset owners, in turn, are increasingly seeking investments that intersect upside returns and sustainability.
• Complex problems require multi-dimensional solutions that not only target companies with alignment to SDGs, but also those with strong ESG and fundamental attributes while balancing risk considerations.
• This tradeoff between risk and sustainability necessitates a sophisticated data approach and advanced portfolio engineering."

Nature – biodiversity, ecosystems, and ecosystem services – provides critical services to the functioning of the planet and the global economy, ensuring human well-being and powering economic growth and job opportunities. Yet, global economic activity and consumption patterns are driving the unprecedented loss of nature.

The Intergovernmental Science and Policy Platform on Biodiversity and Ecosystem Services (IPBES)1 and the United Nations Convention on Biological Diversity (UN CBD)2 identified five human-made direct drivers of biodiversity and ecosystem services loss (also referred to 
as “pressures”): land and sea use change, direct use and (over)exploitation of natural resources, climate change, pollution, and invasive alien species. 

In response, the Kunming-Montreal Global Biodiversity Framework (GBF)3, adopted by 188 countries in 2022, calls for a whole-of-economy transformation to halt and reverse nature loss by 2030 for the benefit of people and the planet. Investing in such a transformation to conserve and restore critical natural ecosystems and to shift economic sectors to sustainable practices can create long-term value, achieve global environmental objectives, and support sustainable 
livelihoods. The GBF estimates the annual financing needs to be $700 billion to meet these objectives.

The bond market has substantial potential to drive investments towards achieving the collective goals articulated in the GBF. A number of nature and biodiversity themed green bonds have already been issued where an amount equal to a portion or 100% of the proceeds was allocated to conservation and restoration, and/or activities addressing the direct drivers of nature loss. These issuances reflect a growing interest in these types of themed instruments.

Tues 22nd July 2025

16:00 UK | 17:00 CET | 11:00 NY | 08:00 SAN FRAN

"Investor confidence is built on transparency — but are current audit practice disclosures doing enough to uphold it?

Join us for a 45-minute webinar exploring how the lack of audit practice transparency poses risks to investor trust and what can be done to address it. This is your opportunity to hear from specialist voices in finance, audit, and sustainability - and to ask your own questions."

Climate Investing Across Private Markets: A Return-Focused Perspective

Global investment in the energy transition has risen from $200 billion in 2004 to $1.8 trillion in 2023. This substantial growth has brought the climate investment landscape to an important inflection point, where it now offers investors a compelling market opportunity from both a scale and risk-return perspective.

More companies can deploy climate technologies and reduce emissions without sacrificing profitability, largely due to lower costs and improved functionality across a wide range of climate-related technologies including solar, battery storage, and electric vehicles (EVs).

This expanding universe of attractive business models and more experienced general partners (GPs) are combining to present dynamic opportunities for investors across private markets strategies to participate in the climate market without foregoing investment discipline.

Expert Guide for: Investment
17 June 2025

This guide provides practical steps for successful investor collaborations, helping investors navigate challenges, align on objectives and leverage collective influence. Drawing from expert insights and real-world case studies, it outlines effective governance, engagement strategies and resource management to drive measurable corporate and policy change through coordinated investor action.

See links below for further details and to apply

Account Manager, Fundraising

Senior Sponsorship Specialist, Events (8 Month Fixed Term Contract)

Senior Associate, Events (8 Month Fixed Term Contract)

JobPost: Bloomberg - Senior Sustainability Analyst, Reporting & Data - Global Sustainability Office (NYC, close unknown)

JobPost: Mondelez - ESG Data & Digital Manager (various global locations)

The Senior Engagement Manager role will sit within the Investor engagement (IE) team. The IE team is responsible for challenging asset managers and asset owners on their responsible investment practices (climate, biodiversity, social…), socialising ShareAction research relevant to advancing responsible investment standards, as well as coordinating investor engagement and outreach across the organisation.

ShareAction intends to develop an ambitious engagement strategy with asset owners to persuade them to lead and drive change across the investment and stewardship chain. One of the main focus area will be engagement with UK and EU pension funds, aimed at mobilising them to drive greater ambition through the investment system by setting high expectations of their asset managers and holding them to account for the quality and ambition of their stewardship activity, including by moving mandates where appropriate.

The role involves establishing high-calibre relationships with senior decision-makers at mainly UK and European asset owners. These relationships are developed through regular dialogue via individual meetings, roundtables or webinars, exploring the application and evolution of responsible investment standards across selected thematic areas. The impact of this dialogue will rest upon the role holder working closely with colleagues across the organisation to leverage ShareAction’s expertise across workstreams.

The Senior Engagement Manager will also support the development of ShareAction’s responsible investment standards for institutional investors, working closely with the Head of Investor Engagement and Senior Research Manager to produce research on key thematic issues. They will lead engagement with investors to gather input, shape recommendations, and drive adoption of higher standards across the investment system.

If this role sounds like something that would build on your current skill set and engage you, we’d love to hear from you!

Deadline for applications: 9:00 a.m. on Monday 4th August

JobPost: UGI Corp. - Manager - ESG & Investor Relations (US, close unknown)

The role will be based within the Carbon Performance or Climate Action 100+ (CA100+) team.

Do note, we are recruiting one candidate for each of the projects, so do express your interest in one of the listed projects and why you will be suited to it within the cover letter. While we will do our best to accommodate project preferences, we cannot guarantee placement in the preferred team.

• Collecting data from government documents, assessing the alignment of NDC emissions reduction targets with 1.5C and researching national policies on climate mitigation, adaptation, just transition and finance.
• Contributing to ongoing improvements in the existing ASCOR methodology.
• Supporting the maintenance of an internal assessment database using Excel alongside R or Python.
• Contributing to writing reports and related analysis and visualisations.  

JobPost: ISS - New Business Sales - Climate & Sustainability (NYC, close unknown)

Senior Associate, Stakeholder Experience
Principles for Responsible Investment
 
Employment Type Full time Please note, where PRI has an office there is an expectation to work a minimum of 2 days per week 
 
Location  Hybrid · London, UK   
 
Seniority Junior
Closing: 8:00pm, 15th Jun 2025 BST

Specialist, Investor Initiatives
Principles for Responsible Investment
 
Employment Type Full time Please note, where PRI has an office there is an expectation to work a minimum of 2 days per week 
 
Location  Hybrid · London, UK   
 
Team IIC
 
Seniority Mid-level
Closing: 8:00pm, 5th Jun 2025 BST

JobPost: M&G - Senior ESG Compliance Advisor (London/Edinburgh, close 30 June)

Principles for Responsible Investment
 
Employment Type Full time Please note, where PRI has an office there is an expectation to work a minimum of 2 days per week 
 
Location  Hybrid · London, UK   
 
Seniority Senior
Closing: 8:00pm, 15th Jun 2025 BST

JobPost: JPMorganChase -  Investment Banking – Sustainable Solutions – Analyst (London, Close 28 Jun)

JobPost: Lloyds Banking Group - Sustainability Reporting Manager (London, close 5 Ju