Edition for 16 May 2020

Top Stories

As ESG Investment Grows, An Asset Manager Looks to Futures (Benzinga)

  • Morningstar research reveals that 24 of 26 environmental, social and governance (ESG)-tilted index funds outperformed their closest conventional counterparts in the first three months of the year.
  • One in seven of these new sustainable investment funds launched in 2019 had a specific climate-oriented mandate according to Morningstar.
  • Sustainable investment sentiment received a significant boost in January when Blackrock chief executive Larry Fink described sustainability as the firm's "new standard" for investing in his annual letter to clients.

Laying the foundation for zero-carbon cement (McKinsey)

  • At the same time, it is also a major contributor to global CO2 emissions.
  • Scientists and governments alike have called for increasingly stringent greenhouse gas (GHG) emissions targets as the consequences of climate change become more apparent.
  • Elena Kosolapova, “77 countries, 100+ cities commit to net zero carbon emissions by 2050 at climate summit,” International Institute for Sustainable Development, September 14, 2019, sdg.iisd.org.

SSAB, Hyundai only two steelmakers worldwide on Paris Agreement pathway: analyst (S&P Global Platts - Metals)

  • Falling values for naphtha are stimulating margins for some petrochemical manufacturers, as COVID-19... Only two steelmakers worldwide have carbon emissions reduction targets aligned with the Paris...
  • Moreover, some major steelmakers have shown no evidence of setting any emissions reduction targets so far, Tom Crocker, research analyst from CDP Global, told a virtual conference organized by the Brussels-based International Stainless Steel Forum, linked to the World Steel Association.
  • Nordic and US-based steelmaker SSAB and South Korea's Hyundai Steel have set goals to achieve carbon neutrality between 2040 and 2050, with SSAB aiming to reach carbon neutrality by 2045 throughout its entire operations, Crocker noted in a presentation entitled Support for future investment versus carbon footprint development.

How Investors Can Integrate Social Impact With Financial Performance to Improve Both (Blog) (SSIR)

  • The Impact Frontiers Collaboration developed four steps to help investors integrate impact with financial analysis in their decision-making.
  • It could change the way investors around the world allocate capital to achieve financial, social, and environmental goals.
  • After years of framework development, metric definition, and data collection, many investors are increasingly able to anticipate, measure, and manage the social and environmental results of their investments.

Alberta 'war room' selling positive oilpatch pitches, but investors aren't buying (CBC)

  • The Norwegian state-owned fund has blacklisted Canadian Natural Resources, Cenovus Energy, Suncor Energy and Imperial Oil because of "acts or omissions that on an aggregate company level lead to unacceptable greenhouse gas emissions."
  • Norway's per capita emissions of greenhouse gasses, for example, is about 9.5 tonnes per year, according to 2018 figures.
  • And in Alberta, the per capita level of emissions is closer to 65 tonnes.

As the Rest of the World Plans a Green Recovery, America Is Once Again Falling Behind (TIME)

  • The European Union has promised to make climate change the centerpiece of its post-pandemic development plans for decades in the future.
  • But in the U.S., the world’s largest economy and second-largest carbon emitter, any such consideration of a green recovery appears dead on arrival.
  • “If the United States is not in a commanding position, our economy will suffer tremendously.” This isn’t the first time that climate advocates in the U.S. have sounded the alarm on the need for the U.S. to invest in climate measures, or risk falling behind in the global clean energy race.

World Bank Launches Inaugural Sustainable Development Bond Impact Report (Modern Diplomacy)

  • The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today published its first impact report covering all bond issuances and the entire portfolio of IBRD’s development activities.
  • The Sustainable Development Bond Impact Report 2019 describes how IBRD bond proceeds support sustainable development across a variety of sectors and how projects support the Sustainable Development Goals (SDGs).
  • World Bank bonds support the financing of sustainable development projects and programs in member countries.

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