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What actions must investors, companies and policy makers prioritise in 2022 and beyond, in order to make COP26 pledges and commitments meaningful and operational? Paul Dickinson, Founder Chair , CDP. Bridget Fawcett, Global Head, Strategy; Co-Head, Sustainability and Corporate Transitions, Banking, Capital Markets and Advisory, Citi.
At COP26, institutions managing more than US$130 trillion in assets committed to reaching a state of net zero before 2050. A 2021 report showed that fewer than half of financial institutions disclosing their emissions through the Carbon Disclosure Project (CDP) have taken action to align their portfolios with a well below 2°C world.
In fact, volunteer market offset activity hit US$1 trillion for the first time in 2021, according to the World Bank. The recent COP26 global climate change conference adjourned with a first-ever multinational agreement for trading standards. Market Parameters and Rules Are Starting to Gel.
According to the initiative’s latest report, Foundations for Science-Based Net-Zero Target Setting in the Financial Sector, banks, asset managers, insurers, and pension funds should ensure their operational and financing activities, as well as Scope 1, Scope 2 and Scope 3 greenhouse gas (GHG) emissions, are aligned with global net-zero goals.
Similarly, natural capital is our global bank of natural assets, including soil, water, air, and all living things. Similarly, in 2021 the World Bank published Nature Action 100 , a proposal for investor engagement on biodiversity. For instance, this year’s CDP climate questionnaire featured a brand-new section on biodiversity.
Even after the 26th United Nations Climate Change Conference of the Parties (COP26) came to a close last November, the ESG landscape still remains unclear. The SFDR mainly applies to financial institutions (banks, insurers, asset managers and investment firms) operating within the EU. The question is: How soon will this change?
Fewer than 35% of companies’ emission reductions targets are credible, climate disclosure platform CDP revealed this week, based on an analysis of 13,000+ companies reporting last year. At COP26, nearly 200 countries finalised Article 6 of the Paris Agreement. There is also very little overlap between voluntary and official markets.
Even JPMorgan, the bank financing the operation, declared regretting its support. Examples of ESG ratings and rankings are Dow Jones Sustainability Index (DJSI), Institutional Shareholder Services (ISS), MSCI , CDP , Sustainalytics or Ecovadis. Announcement of the new International Sustainability Standards Board (ISSB) during COP26.
Goldman Sachs ‘s and Deutsche Bank’s DWS) for exaggerating claims about their products’ sustainability credentials. Moreover, companies will use voluntary frameworks and surveys such as GRI, SASB, CDP, UNGC, and Ecovadis to answer requests from customers, investors and other stakeholders.
With firms only being “required” to disclose, “it will now be up to individual governments to implement policies that ensure this happens and we hope that this will be through enforcing mandatory disclosure on nature,” said Helen Finlay, Global Associate Director for Policy Engagement at environmental disclosure platform CDP. Beyond climate.
SATURDAY 13 NOVEMBER – This statement is the We Mean Business Coalition response to the Glasgow Climate Pact, agreed at COP26. . An updated draft proposal was released by the COP26 Presidency this morning, on the last official day of the conference. READ THE FULL STATEMENT HERE > FRIDAY 12 NOVEMBER – ANALYSIS: .
What did world leaders commit to do at COP26 to stop deforestation? Only days after the COP26 declaration on deforestation, the environment minister of signatory Indonesia, Siti Nurbaya Bakar, said the plans were “inappropriate and unfair”. To end deforestation, CDP says the scale and speed of action by companies must increase.
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