June 25, 2021 - ESG and Climate News
As the western United States swelter in a dangerous, unprecedented June heatwave, the evidence of accelerating climate change continued to mount.?
When it’s too hot to safely go outside, the slow march toward climate action feels like ‘closing the barn door after the horse got out.’ But, even knowing that we have to adapt to some level of climate change, it's essential that governments continue to weigh in to avoid the worst impacts. More than 440 comments were submitted as of this week when the US SEC wrapped up the comment period for potential action on new climate disclosure mandates.? Whether we can we expect quick action here is anyone’s guess.?
Sadly, the newly announced bipartisan compromise on the Biden infrastructure package stripped out big climate measures. Time will tell, but the signs are not looking good for legislative action climate from this Congress. On the European side of the Atlantic, the European Parliament approved the "law of laws" by a wide margin. The bill sets targets to reduce net EU emissions by 55% by 2030, from 1990 levels, and eliminate net emissions by 2050.
Investors, however, are not waiting.? Knowing that the climate crisis presents risks to overall financial stability as well as to their own portfolios, the financial community is demanding action. A new angle came from South Korea this week when the country’s major insurers announced that they would no longer underwrite new coal power. Malaysia’s central bank also joined the chorus of other central banks that will require financial institutions to disclose their climate risks.?And the insurance industry in the UK partnered with Prince Charles to fight the climate crisis.
In another eyebrow-raising development, the historically anti-climate American Petroleum Industry (API) issued guidance for its members to report on their climate risks.
?The path toward globally consistent ESG standards got a boost with SASB and IIRC completing their merger into the new Value Reporting Foundation. Meanwhile, the IFRS continues to accept comments on its proposal for a new International Sustainability Standards Board though July while the European Commission (though EFRAG) plods merrily along to develop its own set of standards. This is a slow-moving train wreck destined to duplicate the current confusion and inefficiency in the ESG standards space. Business and political leaders need to step up now and demand that these entities work together to create a single global ESG standard the world sorely needs!
Ending on a high note, the standard developed by the ‘Partnership for Carbon Accounting Financials – PCAF’ continued to pick up support to calculate ‘financed emissions.’ ?As I wrote, this may just be the most important standard most folks have never heard of…With full transparency of the climate impacts of capital flows, there is hope we can divert the resources needed to fund a transition to the low-carbon economy.?
The OECD estimate the capital needed to achieve the goals of the Paris Climate at nearly $7 trillion USD.? Sadly, the financial industry has poured more money into fossil fuel since the accord was signed but hope springs eternal that the PCAF standard with shine a light toward a better path forward. ?
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C.E.O Jabridep /Founder & National President WIM Nigeria. ESG/Gender/Extractives/Renewable Energy/Climate / Innovation.
3 年The reality on ground visible to all,makes climate change an undeniable issue