Daily ESG Briefing: Investors urge UK government to force large companies to disclose Net Zero plans

The latest developments in sustainable finance

Investors, NGOs and large companies including Legal and General, Aviva and BT are urging the UK government to force large companies to disclose their Net Zero transition plans. While the UK has called for voluntary Net Zero targets and transition plan disclosure, and mandated TCFD reporting for large firms and financial institutions, the letter says that the government should go one step further, making disclosure of Net Zero plans mandatory by 2025, and producing guidance for companies on how to formulate their own transition plans. 

Climate Action 100+ signatories representing $6.7trn in assets have written to the South Korean Presidential Committee on Carbon  Neutrality, calling on it to embed the International Energy Agency’s Net Zero scenario in the transition pathways it is developing. Signatories to the letter, including Dutch pension giant APG, Sumitomo Mitsui, BMO Global Asset Management and the UK’s Universities Superannuation Scheme, caution that coal power plants currently under construction in Korea go against the efforts of the committee, and call for further “private-public collaborative solutions” to help scale emissions reduction technologies.

Moody’s ESG Solutions has awarded physical climate risk scores to sub-sovereigns such as cities and states, by combining satellite imagery, climate data and information about local economies and populations. A quarter of US zip codes are highly exposed to floods, while a fifth of smaller regions in Europe are highly exposed to heat stress, according to the data. Globally, just under a third of states and provinces have a high exposure to water stress.

Japan’s Financial Services Agency plans to require large companies to report against the TCFD, according to reports in Nikkei Asia. Companies listed on Japan’s blue chip market will be required to report from 2022, with all companies that submit annual securities reports required to report from 2023. 

The Netherlands Advisory Board on Impact Investing has launched a study of the Dutch impact investing market in partnership with KPMG. The Board is conducting a survey and follow-up interviews with respondents, with the aim to identify issues which are impeding the growth of the impact investing sector in the Netherlands.