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Shaking up existing stewardship practices can take time, especially when the current approach is so deeply embedded. Many countries in Asia already have stewardshipcodes in place, including Japan, Singapore, Hong Kong and South Korea. Koreas value-up programme is inspired by a similar initiative in Japan.
Supervisory authority ESMA is calling for EU-wide stewardshipcode to hone and standardise investors’ engagement efforts and disclosures. There’s also the stewardshipcode introduced by the European Fund and Asset Management Association (EFAMA), which was first adopted in 2011.
In March 2021, the BEIS published a consultation calling for an increase in audit firms’ accountability to shareholders, an expanded scope to include non-financial information such as ESG risks, and announced the development of ARGA. “Two
Transparency on corporates’ decarbonisation strategies could require review of SRD II or introduction of European stewardshipcode. Europe’s regulatory framework should be adjusted to better support shareholder engagement efforts and give investors more oversight of portfolio companies’ climate transition progress, according to industry experts. (..)
According to figures published by The Global Sustainable Investment Alliance in 2021, Japan’s total sustainably invested assets stood at US$42,874 billion in 2020, representing a more than fivefold increase from 2016. These long-held principles of sustainability have filtered down to the world of investment. C pathway. Mandatory disclosure.
The DWP issued a consultation last October on proposed changes to the Occupational Pension Schemes (Climate Change Governance and Reporting) Regulations 2021 to require trustees to calculate and disclose a portfolio alignment metric to show alignment with the goal of limiting climate change to 1.5 degrees Celsius.
This was followed in 2010 by high level reporting for the Financial Reporting Council’s (FRC) original StewardshipCode. In the UK this coincided with an updating of StewardshipCode reporting requirements and TCFD reporting for pension funds becoming mandatory.”
The concept of assessing what effective stewardship should look like was first introduced by the FCA in 2019 in a joint effort with the Financial Reporting Council (FRC), setting the groundwork which helped define what the minimum expectations should be for financial services firms investing on behalf of clients and beneficiaries.
The DWP simultaneously published a response following its consultation on proposals to amend the Occupational Pension Schemes (Climate Change Governance and Reporting) Regulations 2021. Other initiatives have been working to improve stewardship alignment between asset owners and managers. . Plotting a path to Paris .
In 2021 over 13,000 companies disclosed through CDP along with over 1,200 cities, states and regions. billion of assets, as of 31 March 2021. It is a Tier 1 signatory to the UK’s StewardshipCode, a signatory of the Climate Action 100+ and a member of the LAPFF.
As well as Statements of Investment Principles or Implementation Statements required by the UK’s Pensions Regulator, which require reporting on fund managers’ stewardship activities, trustees must ensure their funds are managed and report in line with the recommendations of the Task Force on Climate-Related Disclosures.
Dimson, Karakas & Li (2015) , Barko, Cremers & Renneboog (2021) , and Bauer, Terwall & Tissen (2022) all found positive market reactions to ESG engagements in their samples. & Li (2021) and Ceccarelli et al (2022) show that leadership is decisive in collaborative engagements. Both Dimson, Karaka? &
In October last year, the DWP sought views on proposals to amend the Occupational Pension Schemes (Climate Change Governance and Reporting) Regulations 2021, requiring reporting on pension schemes’ alignment with the Paris Agreement’s 1.5°C C temperature pathway.
Early in the US AGM season, BlackRock indicated it was less likely to vote in favour of climate-related shareholder resolutions than in 2021, on the grounds that many on this year’s slate were too prescriptive. According to Stewart, BlackRock’s position was not out of step with other managers.
The ESG data market passed US$1 billion in 2021 (with a degree of fanfare) and forecasts suggest it will keep growing at between 20-30% a year. ESG ratings have, evidently, transformed rapidly into an investment must-have. . The numbers have ballooned accordingly.
Hollow Shell – Shell scored a hollow legal victory this week when a Dutch court overturned a 2021 ruling that the oil and gas major must cut its Scope 1-3 emissions by 45%. A selection of the major stories impacting ESG investors, in five easy pieces. Transition tensions were evident this week from Baku to The Hague.
Thankfully the finance industry didn’t do that.” ASFI started back in 2021 on a sustainability roadmap for Australia, including a taxonomy and other sustainable-related policy initiatives. “It was a really smart move,” says Reynolds. Australia is forecast to earn US$302 billion from resource and energy exports, reports Energy Monitor.
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