The latest analysis from index and analysis group MSCI reports that the carbon emissions from corporate bonds, or debt, have the highest carbon intensity of any financial instrument. This identifies a new risk concern for corporations and bond investors.
Linux Foundation, the non-profit technology consortium, has launched a climate data initiative, OS Climate (OS-C). The platform, providing ‘pre-competitive’ layers of data and technology for tools and analytics development, should help meet the financial community’s need for data that is transparent, consistent and interoperable.
While in the US cities have often been seen as an effective level for action on climate change, the City of Vancouver is going one step further. It has voted to add financial backing to the ‘Sue Big Oil’ campaign launched in June 2022.
Following the European Parliament’s approval, amendments to the EU Taxonomy approving the inclusion of nuclear and gas as sustainable investments will come into force in 2023. The debate rages on however, as inclusion could undercut the very point of the Taxonomy.
In a move reminiscent of the call for credibility in corporate transition plans, the High Court found the UK plan was unlawful because it didn’t explain how the government would achieve net zero. This is a further signal that legal action on climate change issues is gaining momentum.
The Partnership for Carbon Accounting Financials (PCAF) has launched a public consultation on the Global GHG Accounting and Reporting Standard for the Insurance Industry Progress Report. The consultation will be open until 26 August 2022.
The EU has set the cat amongst the pigeons at the World Trade Organisation (WTO), with notification that it intends to effectively ban the import of crops into Europe that have been grown with two common neonicotinoid insecticides.
Materiality lies at the heart of any approach to ESG. It is the way in which corporates can prioritise different ESG factors, both in terms of operations and investment management, and is about identifying what matters most to the business.