The worldâs top management consultancies - like BCG, Accenture, PwC, EY, McKinseys - who for decades have advised the biggest polluters, are now rushing into the business of helping companies cut emissions to become more sustainable, explains Emma Thomasson at Clean Energy Wire. The necessary expertise is in very short supply, so they are retraining staff, poaching environmental experts, and buying up smaller specialist firms. BCG is even running … [Read more...]
2023 lookahead for Sustainable Finance: EU Taxonomy, ESG ratings, corporate disclosure laws, Europeâs âIRAâ
What will be the big issues for sustainable finance in 2023? Luca Bonaccorsi at Transport & Environment points at four. Firstly, the EU Taxonomy defines what counts as âgreenâ investment. There has been much criticism of the inclusion of gas, and critics will continue publishing their analyses of what is truly sustainable and what is greenwash. Next, ESG ratings have also been severely criticised. They are an investorâs main tool for capital … [Read more...]
EC Consultation: ESG ratings need regulation to fix inconsistencies and bias
There are multiple problems with ESG ratings and thatâs why they need to be properly regulated, says Hazel James Ilango at IEEFA. Different ratings agencies have different methodologies that are difficult to compare. They can lack transparency and be biased due to industry, geographical location or company size. As for a companyâs impact on the planet and society, it can be overrated or underrated due to the aggregation of Environmental, Social … [Read more...]
How to ramp up Green Mortgages for climate-friendly house improvements
Green mortgages are used to finance climate-friendly house improvements. In the U.S. they already exist, but need to be made far more accessible and marketed widely. Greg Hopkins at RMI cites their report âBuild Back Better Homes: How to Unlock Americaâs Single-Family Green Mortgage Marketâ to explain that the financial markets are looking increasingly favourably at lending that is certified as ESG (environmental, social, and governance). … [Read more...]
Five key metrics investors need to steer Oil and Gas firms into decarbonisation
If the oil and gas industry wonât commit to meaningful strategies and milestones to decarbonise, investors must make them, say Ben Ratner at the Environmental Defense Fund and Erin Blanton at Columbia University. Already, Covid has shown how vulnerable the sector is to unexpected change. If the sector refuses to factor in rising decarbonisation ambitions and policies across the globe that vulnerability will continue for decades. At the same time, … [Read more...]
Defining green investments, ending greenwash: the EUâs new Taxonomy Regulation
When the EU Commissionâs new Taxonomy Regulation is approved, expected in March, it will provide the legal framework to define what is a truly âgreenâ investment. As Luca Bonaccorsi at Transport & Environment explains, right now asset managers and national authorities are free to define what is green, allowing some to greenwash investments in things like oil and pesticides. The Taxonomy's purpose is to reduce ambiguity and therefore increase … [Read more...]
New EU green investment rules to make conservative German savers bite
Germanyâs past renewables successes have been underpinned by government and public funds and guarantees. Its future will depend more and more on private investment, which means citizens and small investors must opt to put their money into green investments and take on risk. The good news is that surveys show citizens are very willing. The bad news is that few are actually doing it. Is it because the banks arenât promoting sustainable investments, … [Read more...]
“Responsible” ESG investments hit $20tn, a quarter of the worldâs professionally managed total
ESG (Environmental, Social and Governance) factors measure the sustainability and ethical impact of an investment. ESG includes the energy sector, and the amounts spent show itâs no longer just an ethical choice, says The Rocky Mountain Instituteâs Todd Zeranski. It doesnât just save the planet, it saves our pensions. Why? From regulatory penalties to the cost of climate clean-up, fossil fuel investments are getting too risky and expensive. Those … [Read more...]
