Elza Holmstedt Pell
Tensions build as investors navigate real-world decarbonisation and the pressing need to ramp up resilience and adaptation work.
Most investors are no more than three years into evaluating physical climate risk exposure in their portfolios, however.
But both asset owners and managers report obstacles to deployment.
While more than half of asset owners engage with their managers on physical climate risk and resilience, policy engagement is not yet on their horizon.
Almost 80% of investor respondents say data coverage is either average or poor and holds back investor action.
Data is improving rapidly and asset owners should ask for more so managers ‘snap to attention’, says Nomura AM’s head of sustainable fixed income.
European Commission asked for feedback on turning National Energy and Climate Plans into ‘true investment strategies’.
Council of the EU has agreed a negotiating position which could see the rules reopened next year.
Deforestation rules are causing splits between and within EU institutions as some want both delays and further simplifications.
Staff to propose educational materials to address investor needs on nature-related risk and opportunities in the near term.