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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.
These long-held principles of sustainability have filtered down to the world of investment. According to figures published by The Global SustainableInvestment Alliance in 2021, Japan’s total sustainablyinvested assets stood at US$42,874 billion in 2020, representing a more than fivefold increase from 2016.
UK asset owners are feeling the squeeze from sustainability reporting, but they are working on ways to ease the pinch. The first time asset owners were expected to report on responsible investment was back in 2007 as part of the UN-convened Principles for Responsible Investment’s (PRI) reporting assessment framework, Russell explains.
ESG Investor’s weekly round-up of moves and appointments in the sustainableinvesting sector, including CDP, Loomis Sayles, UKSIF, Built by Nature, Arcadian AM, London Pensions Fund Authority and PLSA. In 2021 over 13,000 companies disclosed through CDP along with over 1,200 cities, states and regions.
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.
Through SIPs, trustees with 100 or more members are now expected to publicly state their – or their external managers’ – engagement policy and priorities, and explain in detail how they steward their sustainableinvestments. Plotting a path to Paris .
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.
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