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.
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Pressure is growing for prudential measures to help tackle the climate crisis, with banks facing a rise in estimated credit losses of up to 20% in a 'hot-house' scenario. But bankers say climate-related stress tests should not lead to more capital requirements, and some propose alternatives.
Frameworks such as the UK’s Senior Managers & Certification Regime may be adapted – and expanded to sectors beyond financial services – to put company directors on the hook for climate-related commitments.
Retirement village operator Summerset has inked a landmark sustainability-linked loan related to reductions in carbon emissions and construction waste and, less typically, the development of dementia care. Its domestic peers are also expected to take the green finance path.
The US bank recently acquired NN Investment Partners and is offering tools to help clients with their low-carbon transition, says sustainable finance head John Goldstein. But its climate policies and disclosure lag behind industry best practice, though there are plans to remedy that.
Net-zero emission pledges are under growing scrutiny from investors amid worries over the gaming of carbon reporting. Governments are facing rising pressure to ensure accountability for such commitments.
The embattled Swiss bank has cut lending to heavy polluters and is analysing its loan book's carbon intensity and clients' 'transition readiness', but has been slow to set emission-reduction targets. Two of Credit Suisse's top ESG and sustainability executives set out its thinking.
Recognised as a leading asset owner in portfolio carbon reduction, New Zealand Superannuation Fund is further refining its environmental investing strategy. The state institution is looking to do earlier-stage deals and use more impact-focused asset managers, among other things. Here's how.
The year to date has seen record-breaking support for shareholder resolutions, with asset managers such as BlackRock and Vanguard stepping up their stewardship. However, a lack of data on the real-world impact means the jury is still out on their efficacy.
The IPCC’s latest report is unequivocal: humans are warming the planet. With COP26 looming, everyone is clear that rapid policy action is required to mobilise trillions of public and private finance to reverse the damage done. We outline what policies they are.
Border to Coast Pensions Partnership, one of the largest British retirement asset pools, is developing its approach to ESG data as it ramps up its focus on private markets, carbon measurement and diversity issues. The institution's head of internal management gives Capital Monitor the lowdown.
For natural resources such as air, water and soil to be regulated, there needs to be a way of valuing them. Governments are grappling with this issue as investors focus increasingly on SDG 15: Life on Land.
While it has a long-standing focus on climate risk, the $1.3trn NBIM doesn't set a specific goal for cutting its portfolio carbon emissions – despite measuring them since 2014. Nor does it want to adopt a climate-adjusted equity benchmark.
The head of the UK Sustainable Investment and Finance Association (UKSIF) is calling on the government to put its money where its mouth is on green initiatives, starting with reversing cuts to international aid.
The new Corporate Sustainability Reporting Directive seeks to help set a global standard for ESG disclosure. Capital Monitor looks at the implications for corporates, investors and, ultimately, capital flows.
The C$105bn fund has been an early mover in measuring its total portfolio emissions. The head of its sustainability committee talked Capital Monitor through the process and the third parties it works with to achieve it.
Sustainable bond issuance rocketed in the first quarter. Despite scepticism over their true purpose and impact, there is little evidence to suggest that demand will abate soon.
Momentum is gathering behind President Joe Biden’s environmental push, which includes a proposal for corporate climate disclosure. It will add a burden for companies, but the environmental risk of inaction could be a lot higher.
Analysis by Capital Monitor has discovered a small handful of influential investors with significant stakes in companies that dominate the ocean economy. Sadly, improving life below water is not high on many investment agendas.
Companies need to take their heads out of the sand and deal directly with shareholders' concerns over ESG – unless they don't want to tap cheaper capital, of course.
The European Commission wants to compel around 50,000 companies to report across a range of ESG factors. Investors, banks and NGOs are broadly aligned, but reservations exist.
The company's top sustainable finance bankers acknowledge the sector is guilty of not “driving enough capital” to reach net-zero targets, but say huge structural issues are a barrier for change.
In the past 12 months, attention has shifted towards the 'S' in ESG as governments prioritise sustainability like never before. But more needs to be done to enhance the social information being provided, writes Mardi McBrien, managing director of the Climate Disclosure Standards Board.
In partnership with Climate Disclosure Standards Board
Investor peer pressure is having a positive impact on shaping the environment policies for bank financing, but the public sector must play a firm regulatory hand to ensure a level playing field.