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Associate, Corporate Engagement at CDP. Investments Leadership Development Program at Columbia Threadneedle Investments, U.S. Many have cited the past year as an inflection point for sustainableinvesting. Betty Cheong. Finance is essential for advancing a clean, more just economy.
For example, one provider calculates a company’s physical risk based solely on its headquarters location, despite its global supplychain stretching across far-flung manufacturing locations. Industry and company insights from fundamental investment research are needed to identify and account for these quirks and limitations.
The good news is that the region is also home to a growing number of corporate sustainability leadership companies. . Three of four APAC companies responding to the CDP survey say they have identified climate risk as maybe having substantive impact on their business and 60% of these are transition risk. TOP STORIES.
ESG Investor’s weekly round-up of news on technology and tools in the sustainableinvesting sector, including GRI, Sustainalytics, ISS ESG, CDP, Diginex, Esgaia and Normative. .
” Julie Gorte, Senior Vice President for SustainableInvesting at Impax Asset Management, advises asset owners to consider the upsides of this challenging and complex transition. There’s going to be a lot of wailing, moaning and outcry about how much it’s going to cost to find solutions or to phase out plastics,” she says.
Increasingly, however, we see that loop between the trustee and the manager closing, with the CIO getting a clearer mandate from trustees on their sustainableinvestment priorities and providing a more granular steer to asset managers on their expectations.”. Deeper ESG insights desired.
“Biodiversity in rural England is clearly not the same as a Brazilian biome, and [companies in each region] have vastly different potential risks and impacts,” notes Aela Cozic, SustainableInvestment Analyst and Portfolio Manager at UK-based investment manager Fidelity International.
Key risks and opportunities include: Increased frequency and severity of storms, floods, and heatwaves that can disrupt supplychains, damage infrastructure, and impact workforce availability. This assessment is crucial for understanding how climate change impacts could affect your operations, supplychains, and market positioning.
However, according to the reports findings, only 6% of environmental and social proposals are successful, suggesting that shareholder voting has only limited influence in the pivot towards sustainableinvestment. Our research showed that collaboration across the supplychain helps firms get hold of the data that they need.
For financial institutions such as banks, insurance companies and investment managers, scope 3 emissions from supplychains and lending/investment portfolios are often more complex than for other industries. Clearly much more needs to be done to pivot towards more sustainableinvestment and lending practices.
Nature is at the base of every supplychain. For now, business understanding and disclosure of nature risk – both from investee firms’ direct operations and along their supplychains – is patchy at best, with firms in the APAC region lagging global peers. Ecosystem services are absolutely critical to the creation of GDP.
Figure 1: Emerging Regulations and Standards on Sustainability and Climate Disclosure and organizations involved (Source Deloitte ). Besides, mandatory sustainability reporting is also progressing rapidly at the country level. Examples are the Swiss art 964 and the German supplychain act. Thank you GRI! Source VBA.
Management of nature-related risks, impacts and dependencies could soon become central to asset owners’ sustainableinvestment strategies. Although the finite carbon budget offers a compellingly clear focus for climate action, accurate measurement CO2 emissions across supplychains remains elusive.
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.
On the other hand, sustainability and climate change have never been so much in focus. In 2020, more than 9,600 companies disclosed their environmental impacts through the non-profit CDP platform. It represents a growth of 14% from last year and sets a record on the number of CDP environmental disclosures. Conclusions.
million over ESG investing claims; IAASB releases first sustainability reporting assurance standards; EU lawmakers delay supplychain deforestation law; Shell wins appeal against landmark climate ruling; CDP strengthens alignment of sustainability reporting platform with GRI, EU standards; IKEA invests $1.6
But growing demand for information on climate risks from domestic investors and the pace of international developments on sustainableinvestment frameworks mean that US firms should prepare for very similar climate risk reporting requirements to their peers globally. A huge delta”. It’ll get there but it’ll take a while.”.
This week in ESG news: Shell’s board of directors sued over climate strategy; UK regulator to test asset managers for greenwashing claims; Nordea ties top exec compensation to ESG goals; CDP says only 1 in 200 companies have credible climate plans; KPMG & Workiva partner on ESG reporting solutions; Aviva Investors to require climate transition (..)
This week, EU and US policymakers prepared for big shifts impacting sustainableinvestment, amid further evidence that climate risk is financial risk. Lobbyists and policymakers are gearing up to put flesh on the bones of the European Commissions plans to streamline the requirements of key sustainable finance policies.
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