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A group of finance experts tasked with developing a definitive taxonomy of sustainability for Canadian investors has just filed a preliminary roadmap, but they likely won’t publish a detailed taxonomy until 2025. They have a big role to play in facilitating the transition to a low-carbon economy.”
In the era of the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP), the definition of the phrase “free, prior and informed consent” is still a battleground. And it’s “Indigenous participation” that gives her confidence that Canada will achieve those aims, she explained to applause.
The new guidelines detail the process and definitions behind the oil and gas subsidy phaseout. The definition covers initiatives that support fossil fuel consumption or activities, and funding that disproportionately benefits the fossil fuel sector. Carbon Capture Backed by Carbon Offsets?
However, she noted that the “lack of a universal definition of just transition” does make it more challenging for financial institutions looking to incorporate social factors into their net zero strategies. . Just transition is going to be different across communities and geographies,” she said. .
CRREM also facilitates analysis of strandedasset risk and makes decarbonisation in the commercial real estate sector measurable, he says. CRREM is perhaps one of the most successful EU funded research projects for energy efficiency due to the rapid take up by real estate investors and integration into net zero guidance reports.
When asked why economists are failing to re-evaluate their approach to modelling climate-related risks, Philipponnat says that it’s due to a mixture of difficulties in breaking old habits and uncertainty over so-called ‘Green Swan’ events – a concept used to highly impactful and potentially financial disruptive events related to climate change (..)
All this suggests 2024 will prove a difficult and perhaps pivotal year for asset owners looking to make headway on their net zero commitments. It could also accelerate the nascent shift toward a broader definition of stewardship, as well as a possible rethink around the obligations of fiduciary duty. Lee suggests not. “In
Key Definitions What does it mean to invest responsibly? Using this definition, the environmental pillar most notably encompasses considerations of climate change in terms of physical and transitional risk for companies, given the projected impacts of climate change.
The climate data challenge is one of definition as well as collection. But once those concessions are included in protected areas, the ability of those companies to exploit or operationalise those assets becomes much more challenging. For highly regulated companies such as energy utilities much of the heavy lifting has been done.
Sustainable capitalism also invites efforts to reinforce sustainability as a fiduciary issue, create advisory services for sustainable asset management, expand the range and depth of sustainable investment products; reconsider the appropriate definition for growth beyond GDP and integrate sustainability into business education at all levels.
For investors and companies with assets within those key biodiversity areas, this raises the issue of strandedassets. We need to go beyond providing definitions and explain how these concepts translate into practical outcomes for investors,” she said.
C or below will leave a substantial amount of fossil fuels unburned and could strand considerable fossil fuel infrastructure. Depending on its availability, CCS could allow fossil fuels to be used longer, reducing strandedassets.”. What is carbon capture and storage?
It leaves the definition of materiality up to each company to determine, although this will likely be subject to verification by external auditors. This could enable banks or fossil fuel companies , for example, to under-report climate risks or metrics based on an argument that fossil fuels will be needed for many years to come.
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