Listing

"Millani's ninth Semi-Annual ESG Sentiment Study of Canadian Institutional Investors highlights asset managers and owners are no longer just considering ESG factors in their investment assessments but now expanding to the broader impacts (positive and/or negative) of their investments. This shift aligns with a growing adoption of double materiality assessments by issuers, a trend we observe in Canada and internationally.

​Our findings were obtained from 37 interviews conducted in June 2024 with asset owners and managers across Canada totaling over CA $5.4 trillion in AUM."

Summary (Episode 1 in French)
In this episode, our host Milla Craig, President and CEO of Millani, speaks with Stéphanie Lachance, Partner and Head of Sustainable Investing at Fiera Comox, to explore new avenues of value-generating sustainable finance in a context where limiting the integration of ESG criteria is a response to compliance needs that are already outdated.

Summary (Episode 2)
In this episode, our host Milla Craig, President and CEO of Millani, talks with Tom Rand, sustainable finance expert, co-founder and managing partner of ArcTern Ventures, who analyses the current capitalism systems and takes us beyond the energy transition. Together, they uncover some of the myths and hidden blind spots stopping business leaders and investors from moving forward faster toward green growth.

The enduring effects of the COVID-19 pandemic, geopolitical tensions stemming from the Russian invasion of Ukraine, and the humanitarian crisis in Israel have profoundly shaped investor sentiment and practices.

To understand how emerging market investors can continue to direct capital sustainably to the parts of the world that require it the most, we convened six seasoned professionals over lunch on a chilly January day in Stockholm.

Although emerging markets typically evoke heightened awareness of risk, for emerging market specialists, recent global changes don’t necessarily translate to increased risk; instead, they underscore the need for specific skills.

Take, for instance, a large asset owner like AP3: recent geopolitical turmoil necessitated a reassessment of the fund’s global allocation. Their team’s methodology resulted in a country ranking based on relative risks, ultimately leading to China’s exclusion. Similarly, other investors, including a sovereign debt manager at Ninety One and a listed equity manager at Premier Miton, also rely on country rankings. On the other hand, for a private debt investor at Cardano, geographical choices are intrinsically linked to having “boots on the ground.”

What our investor group unanimously agrees upon are the tremendous opportunities inherent in engaging with companies and, in some cases, even with governments. Whether it is communicating with management to obtain reliable data or dictating more stringent terms for refinancing (linked, for example, to environmental targets), investors wield a wide array of tools to affect change.

In responsible investing, faced with the choice between engaging and excluding, preference should go to the former, resorting to the latter when necessary. This principle also applies broadly to capital allocation in emerging markets. Thus, these markets merit a place in every sustainable portfolio but require expert handling. Whether you’re embarking on or continuing your journey into this dynamic investment space, we trust this conversation will help you along the way.

S&P Global: Sustainability Insights: Electric Shock: How Engine Technology Affects Auto ABS Risk

Key Takeaways

New InfluenceMap research finds that the oil and gas industry has used a playbook of narratives and arguments to systematically oppose, weaken, and delay the energy transition since at least 1967. Analysis of historical data on engagement with climate advocacy from three of the most powerful oil and gas industry associations in the United States and Europe – the American Petroleum Institute (API), FuelsEurope, and Fuels Industry UK – finds that these groups have for decades been using the same playbook in their advocacy against renewable energy and electric vehicles.

Within the ever-evolving global landscape, sustainability can play an important role in driving economic growth, societal advancement and environmental preservation. We believe that investing sustainably in clean energy infrastructure projects is instrumental to shaping today’s world and to building a more prosperous future for generations to come. In Nuveen Infrastructure’s 2023 clean energy sustainability report, we highlight key sustainability activities advanced by our clean energy team over the course of the year.

2023 report highlights include:

• Detailed overview of avoided emissions across our equity and credit strategies
• The importance of physical climate risk considerations and how we are responding to impacts in our portfolio
• Biodiversity case studies including how we aim to protect marine life during offshore wind construction
• How we are partnering with local communities 
• Areas where we are refining our job creation methodology 
• 2024 sustainability roadmap 

As the investment environment in real estate continues to navigate challenges, investors are seeking ways to diversify allocations to affordable housing. Impact investment strategies such as affordable housing have long been known for delivering positive social and environmental changes, however, the economic benefits of U.S. affordable housing remain misunderstood by many investors.

What does affordable housing offer investors?

The U.S. affordable housing sector is an attractive investment strategy within commercial real estate and an effective diversifier among housing investments given the sector’s economic resilience compared with other property types. The essential need for housing remains steady throughout economic cycles given the limited supply of affordable units and lack of housing starts, including in recessionary environments. 

An investment in affordable housing can provide investors the opportunity to achieve attractive risk-adjusted returns while demonstrating direct and positive social and environmental impact. Additionally, the durability of rental income in the sector is supported by strong market demand and government subsidies, offering greater stability than traditional real estate. 

Affordable housing can offer investors attractive portfolio diversification through three key areas.

1. Strong income stream

2. Favorable risk-return profile

3. Resiliency across economic cycles

As leading companies look to deeply decarbonize their supply chains to meet their climate goals, lower-carbon steel and concrete stand out for many as clear yet complex targets for reducing their emissions. These materials sectors are emissions-intensive and limited lower-carbon supply exists, as the transition to lower-carbon steel and concrete production technologies can require large capital investment. Many companies today may struggle to directly buy lower-carbon concrete and steel at scale because: 1) they do not contract directly with materials producers, and/or 2) they do not have physical access to lower-carbon materials for a particular use case.

Book and claim is a chain of custody model that allows companies to directly invest in impactful interventions within materials sectors, addressing their supply chain emissions without having to directly purchase those physical products. Under a book and claim system, the environmental attributes (i.e., carbon intensity) of a product are decoupled from the physical product unit and sold separately as a certificate.

An organization can purchase this certificate and claim the environmental attributes without directly purchasing the unit of physical product that the environmental attributes represent. This model has the opportunity to widen the pool of buyers that can invest directly in the lower-carbon materials markets and can send a powerful demand signal necessary for materials producers to finance and build out additional lower-carbon production infrastructure necessary to meet 1.5°C-aligned sectoral climate targets.

"The modern treasury and finance operation has so much more to offer any forward-looking business, beyond its traditional core competencies.

Sustainability is one such area, encompassing not only the current issues at the heart of business resilience, but the defining transformational and growth opportunities of our generation.

In this Citi GPS report, two pieces of proprietary research were conducted in conjunction with Citi’s Services business.

In our first analysis, we found that companies with the most sophisticated treasury operations tend to be the most advanced in their sustainability journey.

Our second piece of analysis looks at net-zero-alignment across the supply chains of 1,500 companies, highlighting the risks of supply chain lock-out and, conversely, the opportunity to drive broader systemic change via innovative financial instruments such as sustainable supply chain finance."

In 2023, over 10 million EVs were sold globally – a 30% increase on the previous year, putting the total number of electricity-powered cars on the road to 30 million. One of the key developments noted by some of the world’s top industry practitioners at BNP Paribas’ second annual Global Electric Vehicle and Mobility Conference in Hong Kong was that EV costs are continuing to decline, while new technologies are coming to market, amidst an uptick in growth.

Thursday 26 September 2024
12.00pm — 12.45pm (BST)

As the world gets warmer and parts of it become uninsurable, we ask whether insurers can effectively model and price climate risk. We will explore who does, and who should, bear the cost of climate change, and what is needed from the industry to enable the transition to a net zero economy.

Greenbank’s head of ethical, sustainable and impact research Kate Elliot will chair the session, with Greenbank assistant investment manager Joel Swift and guest speaker Isabelle L'Héritier, senior campaigner and organiser at Insure Our Future presenting. 

Agenda:
―    Introduction from Kate Elliot
―    Joel Swift, Assistant Investment Manager, Greenbank
―    Isabelle L'Héritier, Senior Campaigner and Organiser, Insure Our Future
―    Panel Q&A

Green Shoots is Greenbank’s lunchtime webinar series where we are joined by specialist guest speakers to explore a sustainable investment topic. 

In light of investor interest and the crucial role of sustainability in corporate performance and strategy, this guide supports companies in the process of integrating material sustainability factors into their equity stories, outlining key concepts, examples from company communications and questions for reflection, on the following themes.

• Purpose
• Business model
• Strategic focus & ambition
• Market positioning
• Product/service offering...

It intends to help companies develop investor relations communications, as sustainable business transformation, supported by the Corporate Performance and Accountability System (CPAS), is being integrated into investor relations strategy, messaging and activities.

The guide does not provide comprehensive mapping to current or emerging reporting standards and requirements or criteria associated with fixed income engagements and products. 

This blog summarises some of the highlights from LGIM's latest Climate Impact Pledge report, which you can read here.

LGIM believe climate change is an important systemic risk to their clients’ portfolios. With the world recently experiencing its first annual average temperature overshoot of 1.5˚C, it is more important than ever to tackle this issue.

Our Climate Impact Pledge (CIP) assessments and engagements show there is much more that companies can do to mitigate climate risks to achieve net-zero carbon emissions by 2050. Over the years, we have seen some progress, but overall we consider that the transition must accelerate. This year, we have engaged with more companies than ever before.

We publish our expectations and engage with companies, on behalf of our clients, to encourage them to mitigate the systemic risks of climate change.

The Climate Impact Pledge assesses over 5,000 companies across 20 ‘climate critical’ sectors. These assessments can lead to vote sanctions, which are typically a vote against the company chair. Within this universe of companies, LGIM has engaged directly with a group of 100 ‘dial movers’, identified for their size and potential to galvanise climate action in their sectors. Where the rate of progress is too slow, vote sanctions and, where appropriate, even divestments can be applied. This is an example of our ‘engagement with consequences’ approach.

CIP by the numbers

• 5,000+: the number of companies across 20 ‘climate critical’ sectors covered by the CIP
• 100+: the number of selected ‘dial-mover’ companies for direct engagement chosen for their size and potential to galvanise action in their sectors
• 86%: the percentage of the total carbon emissions attributable to LGIM’s corporate debt and equity holdings covered by the CIP

What’s new?

In April 2024, we communicated with over half of the 5,000+ companies assessed under our CIP quantitative assessment, our largest engagement campaign to date on any topic.

We have put a focus on three emission-intensive sectors by integrating baseline expectations relating to methane emissions disclosure and no new thermal coal which will drive our climate-related voting for companies in the oil & gas, mining and utilities sectors.

In this year’s report we also highlight progress and improvements made by investee companies.

As the climate changes, we are likely to experience more and more days with extreme temperatures. Most of the time, the impact of droughts or heatwaves will be local, but what if major waterways like the Panama Canal or the River Rhine have to shut down due to low water levels? In that case, global supply chains get disrupted and that, as we learned in recent years, can have a significant impact on inflation.

Serhan Cevik and Gyowon Gwon from the IMF tried to model the impact extreme temperatures have on supply chains and inflation in six large economies (USA, UK, Eurozone, China, Japan, and Korea). Based on the economic impact of past episodes of extreme temperatures, they showed that for most economies supply chain pressures from extreme temperatures are minimal. The chart below shows the response of the local supply chain pressure index (SCPI) to temperature shocks. The dark blue line is the median impact, while the light blue area shows a 68% confidence interval.

Only in the US can we find some material impact on supply chains from extreme temperatures. This is likely due to the importance of inland waterways like the Mississippi and the Great Lakes as well as the importance of the Panama Canal for US supply chains. Similarly, China shows a little bit of supply chain reaction to temperature extremes due to the importance of local waterways for inland supply chains.  But overall, the results are so small that we can safely ignore the influence of global temperature extremes on supply chains.

Which does not mean that we can ignore their influence on the economy overall. The second chart shows the impact of extreme temperatures on headline inflation. Here we see – and this may surprise some readers – that extreme temperatures reduce inflation.

July 29, 2024 – Patrick Drum, MBA, CFA^®, CFP^®, portfolio manager and senior investment analyst at Saturna Capital, was a featured guest on the CFA Society New York podcast Compound Insights with host Robert Rowan. The episode “Major Changes for Sharia Bonds” aired on July 1, 2024, and examines the macro changes and research challenges presented by Islamic bonds, or sukuk.

Patrick Drum delves into the structure and function of Islamic-compliant financial certificates, more commonly known as sukuk. Mr. Drum notes that the sukuk market is approximately 850 billion US, which is currently estimated to be larger than the European Eurodollar conventional fixed-income market, and is comprised of approximately 27 different currencies. Mr. Drum provides insights into how sukuk, which adhere to Islamic law, present unique opportunities and risks for investors.

Patrick Drum elaborates on the structural differences between sukuk and conventional bonds, including their low volatility and risk-adjusted returns. He also discusses the sukuk market's primary currency players and their influence on global investment strategies. The episode addresses the challenges of researching sukuk, including the nuances of Islamic-compliance and the evolving standards set by organizations like the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). Mr. Drum shares his experience with the research process, emphasizing the importance of understanding underlying asset structures and credit analysis.

The discussion touches on the impact of oil market fluctuations on sukuk performance and the broader economic diversification efforts within the Gulf Cooperation Council (GCC) region. Mr. Drum highlights how these efforts are reshaping investment dynamics and offering new opportunities for global investors.

Montanaro's latest stewardship report covers key areas of their activities:

• Purpose, strategy and culture 
• Governance, resources and incentives 
• Stewardship, investment and ESG integration 
• Engagement 
• Collaboration

Regnan's latest sustainability report covers key areas of their activities including:

• Portfolio level metrics - sustainability indicators 
• Engagement case studies 
• Voting activity 
• Exclusion policy

Currys: Annul Report & Accounts 2023/24 (Sustainability pages 36-49)

Curry's latest report covers key areas of their sustainability strategy, including:

• Sustainability approach, priorities and achievements
• Circular economy
• Climate action
• Our communities
• Our suppliers

FirstGroup's latest report covers key areas of their activities:

• Overview 
• Carbon and energy
• Low and zero emission vehicles
• Our facilities 
• Value chain

Natura & Co: Sustainability Compendium FY 23

Natura's latest sustainability report covers key areas of their activities including:

• Materiality 
• UN Sustainable Development Goals
• Environmental Indicators
• Social indicators
• Governance & Economic Impact
• Climate Action

Verisk Maplecroft: Whitepaper -- Transforming equity analysis with asset-level geospatial risk data

Following the launch of Verisk Maplecroft’s Asset Risk Exposure Analytics (AREA), our latest whitepaper explores how geospatial risk data can help investors and banks make better decisions by revealing the hidden climate, sustainability and political risks that exist across the operational footprint of listed companies.

AREA provides a new, objective, data-driven approach to assessing corporate risk and sustainability by combining the global locational data of 50k+ publicly listed companies and 4+ million assets with industry-leading geospatial analytics covering 85 climate, environmental, human rights and political risks.

The paper covers how asset-level geospatial risk data can:

• Provide a missing, transformative perspective on corporate risk exposure, including key sustainability concerns such as biodiversity and human rights
• Enable more informed investment selection, risk management at the security and portfolio level, corporate engagement and sustainable investing
• Empower investors and banks to more effectively meet regulatory requirements and client expectations

Sustainable Fitch: Blue Debt Highlights Financing Needs on Climate Adaptation and Biodiversity

Rising investor focus around climate adaptation and biodiversity is encouraging the issuance of blue debt instruments, particularly blue bonds, to finance projects benefitting freshwater resources or marine ecosystems’ health, Sustainable Fitch says. However, ocean-related activities lack clear definition and criteria, which may restrict project flow and investors’ ability to assess the potential impact of projects related to a sustainable blue economy.

A major obstacle to expanding the blue debt market is the lack of comprehensive taxonomies in identifying eligible blue projects. Projects involving freshwater, such as water infrastructure, are clearly defined within sustainable finance frameworks, but a broader array of ocean-related activities has yet to be included in regional taxonomies. This could be due to technical ambiguities and the nascent stage of understanding the potential environmental impact of eligible ocean activities.

Chronos Sustainability: The Costs and Benefits of Stewardship Reporting (podcast)

In the new Chronos talks podcast, Dr Rory Sullivan (CEO, Chronos Sustainability) and Ash Eyers (Research Analyst, Chronos Sustainability) discuss the UK Stewardship Code, the costs and benefits to investors of stewardship reporting, and the outcomes and impacts that result from investor engagement with companies.

The podcast discusses:

• How investors have used stewardship reporting to clarify their stewardship objectives, to identify areas where engagement has been effective and where engagement has been less effective, to improve monitoring and review processes, and to improve investment decision-making.
• How investors can use their stewardship reports to enable a more thoughtful and effective approach to communications with clients, beneficiaries and other stakeholders.
• The value of collaborative initiatives such as the Investor Mining and Tailings Safety Initiative, the Business Benchmark on Farm Animal Welfare (BBFAW) and the CA100+ Net Zero Benchmark in delivering real world outcomes.
• How the UK’s Financial Reporting Council (FRC) might ensure the continued effectiveness of the Code through, for example, continuing to scrutinise investment stewardship activity, encourage investors to think about the impacts of stewardship over multiple years, and proactively engaging with other reporting initiatives to encourage alignment and mutual recognition.

You can listen to the Chronos Talks podcast: Stewardship and the review of the UK Stewardship Code here 

SSE: Sustainability Report 2024

SSE has published its annual Sustainability Report. Designed to complement SSE’s Annual Report

The report sets out SSE’s sustainability strategy, aligned to the UN’s Sustainable Development Goals, alongside information on the most material economic, social and environmental impacts of SSE’s business activities.

Access the report through the link below, or at sse.com/sustainability.

In a recent publication from TIME Magazine, a portfolio company held in our Sustainable World Strategy, Trane Technologies (NYSE: TT), was listed in the World’s Most Sustainable Companies index. Trane Technologies (Trane), a pioneering Heating, Ventilation and Air Conditioning (HVAC) manufacturer, is helping to radically reduce carbon emissions in buildings and construction at a global scale. 

The GIB AM Sustainable World's multi-thematic approach seeks to identify companies addressing critical social and environmental challenges, affecting both our people and planet. We prioritise solution providers whose offerings not only yield positive performance but also create enduring, sustainable impacts. In this thought piece, we explain how our research and thematic analysis has led us to a firm at the heart of sustainable HVAC technology, and the opportunities we envisage for this up-and-coming industry.

•  In 2022, the United Nations (UN) estimated that building and construction amount to around 40% of global carbon emissions, 28% of which deriving from the heating, cooling and lighting of buildings. 
• By 2060, the global building floor area (i.e total floor area inside a building) is expected to double, equating to a space the size of New York City being added to the world every month, for 40 years. 
• In 2050, the world’s population is anticipated to swell by 2.5 billion, and up to 80% of the global population will reside in cities. Resilient, sustainable infrastructure will be essential in ensuring pollution and emissions are kept at bay, particularly in populous areas. 
• Now more than ever, there are growing incentives and legislation on businesses to adopt sustainable, low-carbon technology e.g Biden’s Inflation Reduction Act, the EU’s Energy Performance of Buildings Directive, etc. 

"On this episode of the Bloomberg Intelligence ESG Currents podcast, le Duc joins Eric Kane, BI’s director of ESG research to discuss the evolution of sustainable investing, the need to institutionalize impact investing, net-positive companies, his view that sustainable investing is hard, essential and insufficient, and much more."

Chronos Sustainability: Forever Chemicals

Perfluoroalkyl and Polyfluoroalkyl Substances (PFAS) are widely used in in a broad range of consumer and industrial applications, including in the aerospace and defence, automotive, aviation, textiles, construction, household products, and medical sectors.

The properties that make PFAS so useful –chemical inertness, temperature resistance, and oil, water and stain-repellence – have also led to concern about their adverse health and environmental impacts. PFAS are resistant to environmental degradation and may persist in the environment longer than any other human-made chemical. Exposure to PFAS from contaminated drinking water and food has been linked with human health impacts including endocrine disruption, increased cholesterol, higher risk of certain cancers, thyroid issues, reduced birth weights, lower response to vaccines and cardiovascular disease. PFAS exposure has also been shown to cause adverse effects in species including invertebrates, fish, amphibians, birds, reptiles, mammals, and plants.

Various mapping projects have confirmed widespread PFAS contamination in water, with many hotspots next to production and manufacturing facilities and on military sites and airports (where PFAS was – and still us – a common constituent of the firefighting foam (AFFF) used in training and firefighting exercises).

PFAS contamination is now drawing increasing regulatory attention. For example:

• The European Union (EU) is considering a proposal that would ban PFAS from all applications for which there are available substitutes.
• Bans on PFAS-containing firefighting foam are being introduced in the EU, New Zealand, and several US states.
• It is likely that PFAS-related drinking water standards will be tightened in Europe and North America, alongside greater regulation of wastewater discharges.

There is also significant litigation risk. The most significant cases have been in the US, notably 3M’s settlement with multiple public water systems for $10.3 billion over 13 years to address PFAS contamination, and Chemours, DuPont, and Corteva agreeing to a $1.2 billion fund to resolve PFAS-related drinking water claims for various US water systems.

However, recent lawsuits in countries such as Sweden and the Netherlands suggest that other countries might see increased legal activity in the coming years.

A new report, prepared by Chronos Sustainability, from the First Sentier MUFG Sustainable Investment Institute – PFAS: Forever Chemicals – Investor Briefing – explores the scale of PFAS pollution, its pathways into the environment, its impact on the environment and human health, regulatory and litigation responses and the risks and opportunities presented to PFAS producers, product manufacturers and waste management, water treatment and environmental testing service providers. 

The report also makes a series of recommendations for investor action on the issue focusing on portfolio risk assessment, company engagement, policy engagement and building partnerships with other investors and other stakeholders.

The report PFAS: Forever Chemicals – Investor Briefing can be downloaded here

S&P Global: Economic Research: Development Needs Explain Transition Costs In Emerging Markets

Key Takeaways

S&P Global: Sustainability Insights: Gas Power Remains Key Pillar For Japan Capital Goods Makers

Amid the intensifying global trend toward decarbonization, Japanese capital goods companies have seen a significant increase in new orders for gas-fired power generation equipment in the last couple of years.

Why it matters: The Asian region needs to balance decarbonization targets with growing electricity needs. For now, the latter is prioritized and demand for new gas-fired power plants remains high, compared with other regions. There are significant implications for earnings and credit quality of such issuers.

What we think and why: Japanese capital goods companies will likely continue to benefit from growing demand for gas-fired power assets in the next three to five years. But decarbonization brings new challenges for the industry. Renewable power projects are more complex and face more severe competition, and future development of greener technologies for gas-fired power generation may shift the competitive landscape in the long term.

S&P Global: Evolving Political Priorities Could Affect Energy Transition

S&P Global: Sustainability Insights: Power Sector Update: Despite Rising Costs, Offshore Wind's Economic Tide Will Turn

This is the second of a two-part commentary on offshore wind. Here, we discuss salient credit factors that we see as key in the debt financing of these large capital projects.

What we think: Wading into the deep has its specific challenges. Cost inflation will remain a key risk for offshore wind projects. We highlight some here.

Why it matters: Offshore wind could be a meaningful addition to the recourse mix as economic challenges are overcome. Cost inflation and execution risks have the potential to cause timeline delays.

Hello, I am back from my summer hiatus. Did you miss me? I doubt it. Anyway, here we go for the second part of the year…

Over the last two years or so, there has been increasing pushback on sustainable investments. This pushback has been particularly strong in the US, where the SEC has been forced to shelve its new climate disclosure rules in the face of an avalanche of lawsuits. In Europe and the UK, meanwhile, the pushback has been mostly focused on taking the edge off of excessive regulation, but nobody doubts the need for businesses to take ESG factors into account. But what are investors thinking? Have their minds changed since the cost-of-living crisis and the underperformance of ESG darlings like renewable energy stocks?

Throughout May of 2022, right when the cost-of-living crisis became the number one issue for consumers and shares of renewable energy companies tanked, the FCA asked a representative sample of 19,145 UK citizens about their financial lives. This Financial Lives Survey is done every two years, but the 2022 survey was the first one to ask participants, particularly about responsible investments.

Unfortunately, the FCA did not make the results of the specific questions on responsible investments available to the public, but a new study by researchers from the University of Sheffield showed the data. 

It is really impressive to see that four out of five investors agree that businesses have a responsibility to conduct their business with a view to more than just profits and to include the impact they have on the environment as well.

Similarly, three out of four people either have already made responsible investments in the past or are planning to do so in the future. However, people do not want to pay higher fees for these investments or accept higher risks.

discoverIE's latest report covers key areas including:

• Sustainability governance framework
• Sustainable Development Goals
• Sustainability strategy
• Sustainability in action 
• TCFD Disclosures

Diageo's latest ESG Reporting Index covers key areas of their activities, including:

• ESG reporting approach 
• ESG materiality
• GRI Index 
• Reporting boundaries and methodologies

JBS's latest report covers key areas of their activities including:

• Business strategy and governance 
• Sustainability at JBS - strategy and approach, governance structure and stakeholder engagement
• Strategies across the value chain - responsible sourcing, producing sustainable food and operating responsibly

• We discover what VC investors are saying about the outlook for high-growth sectors in our Funding the Future Survey
• We explore trade and the energy transition, green hydrogen, China electric vehicles and the Panda bond market
• Plus, we look at corporate targets to cut greenhouse gas emissions, and sustainability issues in less obvious places

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

• EU methane regulation imposes tightening restrictions on the methane intensity of oil & gas, including imports
• Monitoring/reporting/verification and mitigation requirements to be followed by methane intensity limits (starting in 2030)
• GCC stands to benefit, with its oil & gas production already sitting at the bottom of the global methane intensity curves

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

"The sustainable investing landscape is being transformed by several long-term drivers, from evolving global regulation that will continue to have investment implications, to dominant trends like climate transition risks and the unlocking of capital flows to underserved markets. We are also witnessing a compelling convergence of emerging themes – such as nature and biodiversity, climate physical risks, and access to affordable housing. These shifts are creating steadfast investment opportunities such as thematic labeled bonds, transition finance, and private credit strategies, and we are excited by these and other possibilities we see emerging over the secular horizon.

This year PIMCO has focused on expanding our robust platform, deepening our analytical capabilities and diversifying our proprietary frameworks. Consistent with our broader investment platform, our efforts extend beyond traditional areas of fixed income and into alternative asset classes, including private credit, structured products, and real estate. Additionally, we have strengthened our in-depth climate risk and biodiversity analysis, including additional carbon analytics, carbon attribution and projection tools.

All of this we do with our clients in mind. We are committed to helping clients pursue their investing goals and actively engage with them to implement thoughtful solutions that aim to deliver on their objectives.

PIMCO’s “Sustainable Investing Report” offers detailed insights on these developments, along with our latest thinking on market drivers and trends, and detailed case studies on engagement."

Black Sun: The future of sustainability reporting 

With the Corporate Sustainability Reporting Directive (CSRD) in effect and the first compliant reports to be published in 2025, the regulatory landscape for sustainability reporting is set to become more stringent for many companies. As companies prepare for how they will comply, they need to decide how best to meet the new requirements and how this might change the way they report as well as communicate.

Finch & Beak: The Power of ESG Ratings in Capital Allocation

There is growing recognition that ESG factors can have a material impact on a company’s financial performance, risk profile, and long-term sustainability. One of the ways in which investors factor sustainability matters into their decision-making is through ESG ratings and benchmarking, such as S&P Global’s Corporate Sustainability Assessment (CSA), Sustainalytics ESG Risk Ratings or MSCI ESG Ratings.

This article outlines the benefits of participating in ESG ratings to improve access to capital and provides guidance on how to select the most relevant ratings to participate in.
 

ESG Global Advisors: Going Green? Companies Need to be Able to Back Up Environmental Claims or They Could Face Significant Penalties under Bill C-59 (Blogpost)

Amendments to the Canadian Competition Act places additional onus on corporates to ensure all environmental claims are backed by internationally recognized methodology.

Contents
- Key Amendments to the Competition Act: Greenwashing now Considered “Deceptive Marketing” 
- Potentially Significant Penalties for Non-compliance
- Complexities Around the Amendments
- Private Right of Action
 -Our Take: What Will be the Implications for Businesses?
- What Does C-59 mean for a Business’s ESG Strategy & Reporting Practices?
- What Should Businesses Do Now to Avoid Non-Compliance?  

With Trump and Harris hitting the campaign trail, the US election is hotting up. Robert Lambert, Portfolio Manager on our impact-aligned strategy investment team, looks at how the result could shape climate action.

Key discussion points include:

• The clean energy agenda: Donald Trump has been particularly vocal about his pro-fossil fuel views, whilst Kamala Harris has consistently supported expanding clean energy.
• The impact on bond markets: each administration’s economic, fiscal and regulatory policies could have implications for fixed income investors.
• The longer term: both presidencies could lead to higher yields due to increased government borrowing, but the reasons differ. We look at deregulation, inflation risks and public spending.

There’s much more to come before the big day on 5th November, but whatever the result, we anticipate pockets of volatility ahead. As active fixed income investors, harvesting this volatility means we are well placed to deliver returns to our clients.

• Timing: September 16th at 15.30-16.30 CET (14.30 UK)
• Agenda: 30 minutes presentation, 30 minutes Q&A 

Capital Group's latest report covers key areas of their activities:

• Approach to investment stewardship 
• Engagement 
• Proxy voting

Calvert Research & Management: 2024 Calvert Engagement Report - Tools of Change

Calvert's latest report covers key areas of their activities including:

• Engagement philosophy
• Calvert's engagement approach
• Tools of change

This report covers the four active funds launched in 2021, 2022 and 2023: GIB AM Sustainable World Fund, GIB AM Sustainable World Corporate Bond Fund, GIB AM Emerging Markets Active Engagement Fund and GIB AM European Focus Fund. 

The report covers:

• Themes
• Positive impacts, impact highlights and carbon highlights 
• Engagement and voting

WHEB Asset Management

WHEB is a pioneer in sustainable and impact investing.  Our mission is ‘to advance sustainability and create prosperity through positive impact investments’.  We do this through a single, long-only, global equity strategy, investing in companies that provide solutions to sustainability challenges.  With a track record of nearly 20 years, we are one of the early innovators in listed equity impact investing.

Sustainability and impact investing define our whole business as well as the investment philosophy. As a Certified B Corporation, WHEB is part of a global movement of stakeholder businesses, which consider the impact of business decisions on our employees, clients, suppliers, the community, and the environment, as well as our shareholders. Our mission is supported by a strong culture and core values that guide our behaviour. 

For more information about WHEB Asset Management see www.whebgroup.com

UK Client Relationship Manager role

WHEB is seeking a UK Client Relationship Manager to join the team, based in London.  WHEB works with a wide range of investors from across the spectrum including large institutional investors, wealth managers and intermediaries, as well as direct investors.  We treat our clients as our partners, and this role will be at the forefront of creating strong relationships with both potential and existing clients.

This position is a hybrid role with responsibility for client relationships as well as a responsibility for managing the responses to client and potential client questionnaires and due diligence requests. The successful candidate will work as part of a small team and share responsibilities with other team members.

The responsibilities include but are not limited to:

 ·                  Helping to manage WHEB’s client relationships (including institutional, intermediary and retail);

·                  Identifying new potential clients – contributing to structuring and managing our sales pipeline;

·                  Responding to RFPs from potential clients and questionnaires from existing clients;

·                  Updating and maintaining consultant databases;

·                  Regular travel around the UK to visit clients; and

·                  Arranging and attending client/consultant meetings with the Investment Team.

The Successful Applicant

 The successful applicant will have, as a minimum:

 ·        Investment industry experience;

·        Enthusiasm to travel regularly around the UK to meet clients and build networks;

·        A passion for sustainable investment and positive impact;

·        Knowledge of Salesforce CRM would be beneficial;

·        A good level of proficiency in Powerpoint;

·        Excellent people skills with a demonstrated focus on meeting the needs of clients; and

·        Accuracy and attention to detail.

The successful applicant will also be able to demonstrate our values, in particular:

 ·        Teamwork - work in a small, close-knit team, where debate and reasoned discussion are expected and rewarded;

·        Leadership - demonstrate a driving and responsible attitude, working with a high degree of autonomy and ownership;

·        Continuous Improvement – having a passion for progress and sharing learning;

·        Passionate about Impact - a demonstrable understanding of – and passion for – sustainability;  and,

·        Integrity – honest in approach and treat all stakeholders fairly.

Equal opportunities and flexible working

WHEB is an equal opportunities employer and strongly encourages candidates from diverse backgrounds to apply. Based at our office in central London, the position will offer considerable opportunity for flexible working, including both office and home-based work, and we will consider part time working. For more information on WHEB’s policies and culture please see https://www.whebgroup.com/about-us/working-at-wheb/

Process

Applicants should send their CV and a covering letter (which is important as we want to understand what applicants would bring to this role and why it is right for them) to This email address is being protected from spambots. You need JavaScript enabled to view it.

 The deadline for applications is Friday 27^th September 2024.  We regret that it may not be possible to contact unsuccessful applicants.

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