COP26—the 2021 United Nations Climate Change Conference—took place from October 31 to November 12 in Glasgow, Scotland. World leaders met to finalize the rules needed for the Paris Agreement and resolve issues from the last conference.
We invite you to access spotlight content related to the COP26 goals. Discover emerging climate action themes that can address the urgency of climate change and how the industry identifies risks and creates opportunities for a sustainable economy in the long term. Find sustainable investing insight related to carbon, greenhouse gases, water and more.
Reach out to our client advisory team to learn more.
Latest Insights from Sustainalytics
For Investors with Ambitions to Lead on Climate Action Post COP26
In the weeks following COP26, investors in the UK and worldwide face a myriad of upcoming climate-related regulations heading towards the implementation phase. In addition, major global coalitions such as the Glasgow Financial Alliance for Net Zero have sprung up to attempt to accelerate decarbonization via targeted investment.
COP 26: A Spotlight on Emerging Climate Action Themes for Investors
Reactions to the COP26 Conference and the resulting Glasgow Climate Pact have predictably run the gamut from claims of greenwashing to the celebration of progress in the fight against climate change. Ultimately, any judgement on COP26 may be premature, as the success of the conference will best be measured in time by the extent to which commitments made are put into motion. While we wait to see the concrete actions that materialize, the past two weeks have underscored the importance of several themes that will garner increasing attention and should be considered by sustainable investors.
COP26 Goal #3 – Mobilize Finance
How can governments, companies and financial institutions help to mobilize finance to achieve global climate goals? Mayur Mukati of Sustainalytics’ Corporate Solutions unit discusses the role of sustainable finance in supporting a just and sustainable climate transition.
COP26 Blue Zone Session Hosted by Sustainalytics.
Adaptation and resilience in urban water: Lessons from practice
Kata Molnar, Thematic Water Expert at Sustainalytics examines discusses the role of various stakeholders in creating appropriate disclosure frameworks and standards for water.
Morningstar Sustainability Insights
The Impact and Cost of Air Pollution: U.S. Petroleum Refineries
Investors can examine to what extent petroleum refiners manage their Non-GHG Air Emissions and assess the quality of a company's programs to reduce air pollutants. For instance, examining all the petroleum refiners assessed by Sustainalytics, we observe that only 3% have a strong program to manage non-greenhouse gas emissions.
Impact of Climate Change and Extreme Weather on Essential Services
Utilities have found themselves in the literal and metaphorical eye of the storm over the last year as hurricanes, floods and wildfires of increasing frequency and strength have wreaked damage on their assets. In late August, Storm Ida made landfall in Louisiana, USA and devastated the power grid lines. Entergy, the utility operating in Louisiana, supplying most of New Orleans, restored 90% of the supply only by mid-September, with 87,000 customers still without power.
ESG Risk Ratings
Take a coherent and consistent approach to assessing financially material ESG risks.Learn More
Our flagship Climate Solutions assesses the degree to which companies’ enterprise value is at risk, driven by society’s transition to a low-carbon economy.Learn More
Material Risk Engagement
A proactive engagement with companies with the greatest unmanaged financially-material ESG risks.Learn More
Biodiversity: A Crisis Equaling, Possibly Exceeding, Climate Change
According to the UN’s Convention on Biological Diversity the main drivers of biodiversity loss are habitat loss and degradation, climate change, pollution, over-exploitation, and invasive species. Habitat loss is directly linked to the conversion of natural ecosystems to agricultural lands and unsustainable use of water resources.
Manage and report on the social and environmental impact of your portfolioLearn More
A proactive collaborative engagement program that focuses on ESG topics aligned to the SDGs, such as Climate Change and Human Capital.Learn More
Impact Metrics is a broad set of company-level metrics that provide measures of environmental and social outcomes.Learn More
Climate Week NYC: Navigating the Fast Evolving Sustainable Debt Market
While global green bond issuance has been growing rapidly, these instruments still represent a niche segment of the global bond market. Join Sustainalytics during Climate Week NYC for a virtual event on Navigating the Fast-Evolving Sustainable Debt Market.
What’s Happening in Sustainable Finance: The Push for Climate-Related Disclosures, Assessing SPT Ambitiousness, and More
Highlighting what’s new in the world of sustainable finance including the push for more company reporting climate-related risks, the emergence of more oil & gas companies exploring sustainable finance options and our tips on how companies can assess the ambitiousness of the targets used in sustainability-linked debt.
Sustainable Banking Insights
Helping leading financial institutions build their sustainable banking, lending and finance frameworks.Learn More
Helping issuers bring credible green, social and sustainability bonds to market.Learn More
Supply Chain Solutions
Helping firms asses the overall sustainability of the organizations they work with, from customers to suppliers to partners.Learn More
We can only rise to the challenges of the climate crisis by working together.
For investors and companies to move the needle on climate action, market participants across the value chain rely on
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Momentum Around Principal Adverse Impact Data Remains Strong Despite SFDR Delays
Despite the shifting timelines, we observe that the market momentum around PAIs is not diminishing, quite the contrary. Investors in the scope of the regulation are using the fourth quarter of this year to get acquainted with PAI data and set up their systems. Most investors we speak with want to be prepared in time to be able to monitor PAIs throughout 2022 and adjust their portfolios to boost their PAIs (or rather limit the downside, as these are adverse impact indicators). This means that PAIs may significantly impact stock selection and portfolio construction by fund managers keen to have ‘good’ PAI scores.
Recent market trends put engagement and voting front and centre for responsible investors
From a market perspective, engagement and voting on governance issues have been used as levers for influence for a long time. On the other hand, environmental and social issues were historically addressed from a values-based perspective or primarily for fact-finding purposes. Today, many responsible investors leverage corporate dialogue as a tool to influence and drive meaningful change and impact
North American Material Risk Engagement Trends: ESG Reporting Frameworks, Emission Reduction Targets and Beyond
There are many factors that rating agencies consider within its overall assessment. For example, ESG rating companies tend to look for at least three years of ESG metrics to determine company trends and long-term ESG targets, goals, and strategies to manage and reduce ESG risks at least five years ahead. Read on to learn about how Sustainalytics' Material Risk Engagement program promotes and protects long-term value by engaging with high-risk companies on financially-material ESG issues. (A North American Snapshot)
Our core research and ratings solutions have enabled the world’s leading institutional investors to identify, understand, and manage ESG-driven risks and opportunities. As a part of Morningstar, we continue to accelerate our efforts to bring meaningful ESG insights to investors of all types across different asset classes at the company and fund level.
Sustainalytics’ Corporate Solutions unit works with hundreds of companies and their financial intermediaries to help them consider sustainability in policies, practices, and capital projects.
Confronting the global climate crisis involves diverse perspectives, adaptability, and collaboration. Learn more about how investors use ESG ratings to engage on environmental, social and governance factors.