Earth Day is an opportunity to reflect on climate and the changes needed to ensure a sustainable future. This year, with the continuing COVID-19 pandemic, there is an even greater need to drive changes forward as we enter the new normal.
The pandemic has highlighted various material ESG risks inflicting havoc on our climate, communities, companies and financial markets. Investors around the world are partnering with Sustainalytics to drive change that can have positive ESG impacts on their investment strategy and align with their values—while striving to make change for good.
Leading up to Earth Day on April 22, hear from Sustainalytics’ global network of analysts and thought leaders who share their insight through recent reports, videos, blogs, new products and more.
To learn more on how our climate solutions can help investors with security selection, active ownership activities, product creation, and for reporting, please contact us.
Climate Risk Management: Investing Toward Net Zero Video
Watch our fireside chat with carbon experts from Sustainalytics and index specialists from Morningstar where we discuss:
How portfolio realignment can help achieve ‘net-zero’ emission goals
Using Sustainaltyics Carbon solutions to meet TCFD requirements
Applying Sustainalytics-driven carbon metrics to Morningstar’s suite of equity indexes can guide investors seeking to reduce carbon exposure
Sustainalytics’ Carbon Risk Ratings assess the degree to which company value is at risk, driven by the transition to a low-carbon economy. Specifically, the Carbon Risk Ratings measure a company’s unmanaged exposure to carbon risk. The rating captures complex and diverse types of carbon research in a single, quantitative rating that can be easily used for investment decisions and reporting purposes.
Deforestation and Biodiversity Loss Highlight the need for a Better Normal
The world is aching for a return to normality after a year (and still counting) of news bulletins being dominated by the COVID-19 pandemic; Earth Day 2021 should serve as a stark reminder that we cannot go back to business-as-usual. We must address the vast environmental challenges facing humanity, such as climate change, loss of biodiversity, extreme weather and issues related to water.
10 for 2021: Investing in the Circular Economy
This report aims to support investors interested in gauging environmental, social and governance (ESG) risks and opportunities in the global food value chain. We survey key subindustries – from agrochemicals, agriculture and aquaculture to packaged food, food retail and restaurants – in search of solutions that may support the principles of the circular economy (CE). These principles include minimizing waste and pollution, extending the use-phase of products and ecosystem regeneration. Some of the key insights found in the report are:
Climate Change – Sustainable Forests and Finance
Earth, which highlights the need to protect our forests. As Earth Day approaches, we invite you to join our fireside chat series exploring the investor and corporate perspective on our latest thematic engagement, Climate Change - Sustainable Forests and Finance.
Bringing Investors and Companies Together to Address the Climate Change Crisis
As Earth Day is around the corner on the 22nd of April, the Biden Administration is to convene a global climate summit. Following a historical precedent for several such events, since its inception in 1970, including signing the landmark Paris Agreement . We have seen positive developments since the Paris Agreement; societal actions to address some of the root causes of climate change have yet to suppress the negative trends . Historically, active ownership on climate change has focused on direct emissions from highly exposed sectors, such as fossil fuel and utility companies. However, the more complicated, less direct aspects of climate change have seen limited progress. Tackling such issues will see a strong need for collaboration from both countries and other key sectors, in particular, banking and finance. Banks are key to support this transformation; facilitating economic activity for positive change throughout the entire value chain is key.
A Look Back at Our Previous Blogs on Climate Change
A Political Pivot for Climate Change and the American Coal Industry
As the Biden administration moves into the White House this week, the world is waiting to see if a promising focus on climate change along with a Democratic Congress will present plausible opportunities to cut carbon emissions. While the outgoing administration backed initiatives supporting coal energy, it doesn’t appear to have slowed industry decline.
Is Natural Gas a Cleaner Energy Solution?
While Oil and Gas (O&G) operations are responsible for roughly 15 percent of global energy-related GHG emissions, some energy companies have pledged the role of natural gas (NG) as a transitional fuel. At the same time, NG energy use is increasing globally, and shale-gas extraction is booming at an unprecedented rate. One factor that is often overlooked is the methane emissions across the NG value chain.
Integrating Climate Risk into Corporate Governance
Since the introduction of the Taskforce on Climate-related Financial Disclosures (TCFD), there has been increased scrutiny of corporate climate governance and broader associated risks. Investors have increased their focus on climate risk, as governance mechanisms are likely to be impacted by transition and physical risk challenges[i].
The Race to Net Zero: Decarbonization Commitments in the Oil & Gas Industry
Recent reports concerning record decreases in global greenhouse gas (GHG) emissions due to the COVID-19 pandemic have spurred hope for a “green shift” in our global economy, post-pandemic. The importance of this shift cannot be understated, given that capital investments made within the next five-to-ten years will determine the world’s carbon pathway to 2050 and beyond.