The chief investment officer of Spanish insurer Mapfre says EU regulators' attempts to supervise sustainable assets are too prescriptive, in that they lack essential interpretative context. This, he adds, is also partly why external ESG ratings fail to add major value.
Under pressure from the financial sector, the EU, G7 and other influential bodies are ramping up the push to achieve consistent measurement and reporting of sustainability impact amid concerns that separate initiatives are hindering this goal.
With investors pushing back on what they see as weak or immaterial claims by issuers of sustainability-linked debt, banks are now citing similar concerns – though they are still arranging deals seen as questionable.
The lucrative business of securities lending – often criticised for lacking transparency and not being aligned with long-term responsible investment – is in the spotlight more than ever. But ESG-related standards are being developed for the industry.
New research reveals many insurers are still shying away from tightening up their oil and gas policies in line with International Energy Agency recommendations. That said, they have made solid progress on coal, having generally closed the gap on the asset and liability side.
Businesses know the influence climate change is having on our environment. And while many will do all they can to accelerate the race to net zero, effective climate change risk modelling must form the backbone of these efforts.
AkademikerPension, ATP and PensionDanmark are increasingly heavily focused on green investing but take different approaches to renewable energy and high-carbon assets, and to climate transition in general.
Over 2,000 governments and businesses have signed up to some form of net-zero commitment, but, in the midst of a 'code red' for humanity, 2050 feels a very long way away. Richard Mattison, president of S&P Global Sustainable1, discusses how we can accelerate progress.
The world’s biggest fund house is to offer wider proxy voting rights to many of its institutional clients. But there is scepticism over how much impact the move will have, and other big asset managers are reluctant to make similar commitments despite rising pressure to do so.
The stakes are higher than ever for the upcoming UN climate talks in Glasgow to deliver results on policy promises, but the absence of key players has tempered expectations. Still, there are positive signs of progress from the world of business and finance.
The Task Force on Climate-related Financial Disclosures says corporate reporting on climate scenarios is improving but remains minimal. Asset managers say they want to see better models, but data providers suggest there may be more behind this resistance to greater disclosure.
Three-quarters of European companies have set emission-reduction goals, but details of how they intend to achieve them are lacking, while only one in ten is on track to hit net-zero targets, finds recent research. Pressure is growing on corporates – and regulators – to take more action.
Members of the European Parliament voted at the end of September to extend natural gas subsidies until 2027. Critics are slamming the decision, adding to pressure on governments to end support for fossil fuels. But even progressives acknowledge the tricky decisions involved.
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