Climate change presents a systemic risk to economies, financial markets, and investments. To spur the action required to mitigate its most severe impacts, the owners and managers of trillions of US dollars have committed to net-zero emissions by 2050 or sooner. Yet global emissions continue to rise. While investors alone cannot bend the trajectory of emissions, the most common approach…

Company reporting on ESG-related impacts through CSRD may be safe, for now, but EC revisions still represent a setback for investors. Sustainable investors have received some respite during a difficult week, as the European Commission’s (EC) omnibus package has preserved the double materiality element of the Corporate Sustainability Reporting Directive (CSRD). Rumours had emerged earlier this month that some businesses…

A selection of the major stories impacting ESG investors, in five easy pieces.  This week saw at least one success for scrutiny of corporates’ environmental impacts. Follow the science I – Global food and drinks group Danone this week trumpeted the continued success of its ‘Renew’ strategy, unveiling a 4.3% increase in like-for-like sales in its 2024 annual results, and…

Asset owners can play a critical role in safeguarding financial returns and natural ecosystems, according to Bruna Bauer, Research Manager at Pensions for Purpose. The integration of nature and biodiversity into investment strategies is still in its infancy for many asset owners. This creates a hesitancy to engage with nature-related issues, stemming largely from limited internal expertise, small sustainability teams…

Close integration of terrestrial and marine conservation strategies is needed to protect the blue economy, argues T Rowe Price Portfolio Manager Willem Visser. In recent years, the world has witnessed an alarming increase in the frequency and intensity of wildfires, a phenomenon closely linked to climate change. The global economic cost of wildfires is estimated to be between US$394 billion…

To be successful, engagement must be a two-way street, says Gillian Secrett, Research Director at the Cambridge Institute for Sustainability Leadership.  Direct engagement with investee companies has emerged as the preferred way for institutional investors to influence corporate decision making. Exerting influence means being useful to companies and their boards, rather than confrontational.  According to research recently published by the…