ESG Insider: Closing the financing gap for climate adaptation
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Most of the climate-related financing in recent years has gone toward mitigation — actions taken to lower emissions and limit global warming. But significant impacts from climate change are already occurring, and adaptation is becoming just as important as mitigation, new research from S&P Global finds.?
Those adaptation efforts need much more financing than they currently attract, with less than 8% of global climate finance going toward projects aimed at building climate resilience, the authors wrote. For example, climate change adaptation was not among the 10 largest categories of green bond spend in 2021, according to the analysis.
Adaptation finance may have hit a turning point, however. Addressing this need has gotten the attention of major financial institutions and was a focus at COP27, the UN’s annual climate conference, in 2022. Investors are also reckoning with the reality that many of the world’s largest companies have at least one asset that will be exposed to climate hazards in the coming decades, which could encourage more spending on adaptation.
Other highlighted research in this week’s newsletter includes a look at the gender pay gap that existed among the highest-paid CEOs in the S&P 500 in 2021, ahead of the 2022 CEO pay figures being released later this year. And we review a new commitment by French Bank BNP Paribas to sharply cut oil financing by 2030.
The latest episode of the ESG Insider podcast explores how the topic of stakeholder capitalism has evolved over the past couple of years at the annual gathering at Davos, Switzerland, held by the World Economic Forum.
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Crunch Time: Can Adaptation Finance Protect Against the Worst Impacts From Physical Climate Risks?
Adaptation to climate change will become as important as climate mitigation in terms of protecting wealth and lives over the next few decades. Accelerated investments in adaptation finance will be needed to avoid the most severe impacts, and there are signs those investments may be at a turning point.
Men dominated 2021 ranks of highest-paid CEOs in S&P 500?
Women are nearly absent from the group of top-earning CEOs at S&P 500 companies, according to an analysis of the most recent data by S&P Global Market Intelligence.
French bank BNP Paribas to sharply cut oil financing by 2030
BNP Paribas SA unveiled a "new phase" in its climate strategy, committing to cut its financing of oil extraction and production to less than €1 billion by 2030, a decrease of more than 80% from its current balance of €5 billion.
EU green plan aims to rival US climate law, repel deindustrialization fears
Players from across the renewable energy sector praised the European Union's attempt to rival the U.S. Inflation Reduction Act with a stimulus package that aims to preserve and expand Europe's clean-tech industries and prevent investor flight.
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ESG Insider Podcast
In this episode of the ESG Insider Podcast, we explore one of the topics of discussion at the World Economic Forum event in Davos, Switzerland: stakeholder capitalism. In this episode, we hear about how discussions of stakeholder capitalism are evolving from the World Economic Forum's project lead for ESG and from the co-chair of the ESG, Social Enterprise + Impact Investing and Energy practices at law firm Morrison Foerster.
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Corporate Sustainability/ESG Consultant, Professor Associado na FDC - Funda??o Dom Cabral, Advisor Professor at FDC
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