Investment professionals are increasing the pressure on big corporations to do more to combat climate change. A small, but influential investor, the Church of England has become a leader in the mission to save the environment through finance.
When doing your Risk Assessments, please be mindful of the physical and transition risks presented by climate change.
For three years in a row, the World Economic Forum’s Global Risk Report (GRR) has called out the risks we collectively face from climate change. In the 2019 report published in February, climate change and environmental risks dominate the “high likelihood” and “high impact” quadrant of the global risk matrix. Read the article here.
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A renewed focus on lesser fuel usage was originally promoted by United Continental as a responsible move for the atmosphere. But the effects were felt most strongly by the company’s investors. United managed to save $343 million in a single fiscal year.
cross Alaska, March temperatures averaged 11 degrees Celsius above normal. The deviation was most extreme in the Arctic where, on March 30, thermometers rose almost 22 degrees Celsius above normal—to 3 degrees. That still sounds cold, but it was comparatively hot.
It is not alarmism to suggest that climate change is itself an emergency. It is the causal force driving up the frequency and severity of each of these other crises.
ExxonMobil and Chevron will square off at annual meetings today (29th May) with concerned investors who want to see greater action to address climate change risk, and a tangible shift in the corporate culture behind the companies’ intransigence.
Australia’s greenhouse gas emissions increased for fourth year in a row in 2018.
As things stand, however, Australia will be faced with the necessity of making the same transition over a period of perhaps five to 10 years. That will entail massive investment in solar PV, storage and wind, totalling perhaps $100bn. Given the uncertain environment created by decades of policy reversals, governments will need either to undertake this investment directly or provide long-term guarantees.
Activists are disappointed after the majority of large superannuation funds failed to support shareholder resolutions on environmental, social and governance issues last year.
The exceptions were construction industry fund Cbus, Local Government Super and Vision Super, which voted in favour of shareholder resolutions on more than 75 per cent of occasions, Australasian Centre for Corporate Responsibility's climate and environment director, Daniel Gocher, said.
“Despite claims from many funds that they are ‘ESG aware’, there is still widespread reluctance to support sensible shareholder proposals on these issues,” he said.
Corporations are facing increased pressure to apply climate-related governance, strategy, risk metrics and disclosure. Report preparers, assurers and auditors must approach climate change-related issues with the same degree of rigour as any other financial variable.
As reporting season approaches, financial report preparers are grappling with new expectations concerning the disclosure of financial impacts associated with climate change.
They all want to learn more about the greenhouse gases and other pollutants that pour out of the world’s power plants, with the aim of holding companies and polluters accountable. They’ll be relying on satellites currently up in space to gather data for this endeavour.
Climate, culture and risk are now mainstream governance issues in agriculture and natural resource management.
In a recent risk and governance forum held in Australia, experts highlighted that organisations should undertake rigorous review of their non-financial risks, in particular those related to culture and climate.
While some sectors – including banking and agriculture – were directly called out in terms of their impact, there were implications for all sectors of industry.
With the increasing focus on the need for good governance, and expectation that the advice provided by professionals meets the highest ethical standards, it is incumbent upon professionals in all sectors to demonstrate how they are acting in the interests of their clients and organisations as a whole, and not just focus on financial performance.
This article was originally published in the Australian Farm Institute Insights newsletter in May 2019
Economic modelling is one of many tools for policy development. It is often taken out of context and misused. The present debate over the cost of Labor’s climate policy provides an example. Lack of context, modelling assumptions and selective use of modelling results risks distorting future climate and energy policy, with serious consequences.
Before entering into discussion of recent Coalition claims regarding the impact of Labor’s climate policies, we should consider some context.
Belgium, Denmark, France, Luxembourg, the Netherlands, Portugal, Spain, and Sweden urged the EU to cut emissions to net zero by 2050. They also demand that at least a quarter of the EU budget be spent on projects to fight climate change.
Responding for the government, the environment secretary, Michael Gove, said he accepted “that the situation we face is an emergency”, and called for a consensual, cross-party approach so the UK could take a lead on climate action.
“[Young people] understand the simple discoveries of science about our dependence upon the natural world,” he said. “My generation is no great example for understanding – we have done terrible things.”
The protests by young people were enormously encouraging, Attenborough said. “That is the one big reason I have for feeling we are making progress. If we were not making progress with young people, we are done.”
Carney has delayed his exit from the BOE twice because of Brexit, though he’s said he won’t do so again and will leave at the end of January 2020.
If BlackRock is going to promote the kind of systemic shift that Fink’s 2018 letter suggested, there’s still much work to be done. In this blog, we identify several areas to which BlackRock should turn its attention next.
Singapore’s OCBC Bank is the first banking giant in Southeast Asia to rule out financing new coal-fired power plants.
In an interview with Bloomberg on Wednesday, the bank’s chief executive Samuel Tsien said the company would no longer fund new coal-fired power plants in any country.
If some companies and industries fail to adjust to this new world, they will fail to exist,” Carney and De Galhau said.