Reports

Inside: The measures investors should be thinking about on the road to a low-carbon future, from agriculture and industry to energy and transport; Plus expert comment and analysis from industry leaders; And much more...

Getting to net zero by 2050 is going to take more than just a few tweaks - it will make the financial system unrecognisable.

Practical guidance and opinion about how COP26 and the EU sustainable finance agenda impact the investment decisions and reporting responsibilities of asset owners, investment managers and service providers.

Philip Morris International's Low-Carbon Transition Plan, which provides a transparent and detailed view on how it plans to achieve its climate ambitions, measure success, and report on progress. 

The sustainable business movement is a prolific generator of new terms. From SRI to ESG to impact, now to TCFD and TNFD and Net Zero, one can easily be overwhelmed by detail.

In this paper Qontigo and Clarity AI review some of the most prominent impact management and measurement frameworks developed by leading institutions around the world with the aim of identifying a baseline for what constitutes impact investment.They compare the current state of “impact-branded” investment practices by listed equity investors to the criteria identified in the baseline, in order to assess the level of misalignment in the interpretation of impact in theory versus practice.Importantly, the paper includes recommendations on how the investment community – including investors, regulators, financial service providers, and non-profit organizations – can address this issue.

Navigate The Process Of Making A Net Zero Emissions TargetThe research addresses the following questions:        What strategies can firms adopt to achieve net zero emissions?        What is the current state of net zero targets amongst FTSE 100 constituents?        What are the critical success factors in making net zero commitments?Some headline stats within the research:        71% of FTSE 100 firms have set a net zero emissions goal for between 2025 and 2050.        At present, the SBTi has ratified the net zero emissions goals of 35% of FTSE 100 firms, which is less than half of the 71% with a publicly disclosed net zero emissions target.        17% of FTSE 100 constituents plan to achieve net zero emissions within the next 15 years.        Financial data provider S&P Global found that capturing CO2 in environmental projects has the capability to offset less than 50% of current emissions.

The complex nature of climate change will have far-reaching implications across all corners of the economy. As more data and scientific information becomes available on the rapidly worsening effect climate change is having on the planet, companies need to realise the implications of their actions. A large number of companies are playing catch-up and need to quickly incorporate climate change into their business strategies. Those that do not will be faced with the probability of their company being less resilient in the low-carbon economy, as well as less attractive to investors. This report by ISS Corporate Solutions will investigate how companies are aligning with the Task Force on Climate-related Financial Disclosure (TCFD) at an overall level as well as individual disclosure pillars.

The last few years has seen huge growth in ESG and climate-themed financial products on global markets, with the funds offered growing to a total value of $1.7 trillion in 2020. In parallel, regulators have become increasingly concerned about the quality, consistency, and transparency of available products in this category. This research assesses 723 equity funds specifically marketed using ESG- and climate-related key words, with over US$330 billion in total net assets. It does so on the basis of two climate criteria (portfolio Paris Agreement alignment and fossil fuel intensity) likely to be of primary interest to investors in funds marketed in this manner.

An analysis of whether the EU’s procedural framework for sustainable finance policymaking is fit for purpose.The ex-ante impact assessment is one of the most important tools available to policy makers. It is a critical step to promoting informed decision making and ensuring that the final policy design is optimal for addressing the issue at hand.In this crucial year for sustainable finance policy, with the recent release of a new Sustainable Finance Strategy, the impact assessment process must be improved to ensure that any policy is actually doing what it needs to. EU policymakers do not have a moment to lose and cannot afford any mistakes.