New Standards from CFA and ISO, Natural Capital Maps, and Recycling in Europe
Here are 5 ESG insights you might have missed this week:
CFA Institute Unveils ESG Standards, Seeking Industry Comment-
CFA Institute has issued a draft of the ESG Disclosure Standards for Investment Products. This marks the first voluntary standard designed to accommodate all types of investment products and ESG strategies on a global scale.
The institute’s goal is to set ESG guidelines comparable to the global investment performance standards, known as GIPS, which are widely adopted for investment performance measurement. Approximately 1,800 organizations comply with GIPS and 1,000 companies adhere to the CFA’s asset management code of conduct.
The standards, detailed in a 76-page exposure draft released this week, are meant to address widespread confusion on ESG-related terminology and investment approaches, and to increase transparency and consistency in disclosures.
Mapping Natural Capital Hotspots of Depletion-
A new tool from PRI and UNEP-WCMC to map exposure to risks from natural capital depletion.
The maps are available through ENCORE, and aim to help financial investors identify where their portfolios could potentially be exposed to risks from natural capital depletion. This information can be used to inform the development of integration, stewardship and engagement strategies, and help the safeguarding of nature’s assets.
Depletion of natural capital stocks is occurring worldwide. The hotspots of depletion indicate where investors should be particularly mindful of the market, credit and operational risks associated with this loss. Those maps are a starting point, highlighting the need for a greater understanding of natural capital depletion, and its impact on society. They also indicate where investments can have a positive outcome by halting the loss through a transition to nature-positive activities.
ISO 14097- Standard for Investment, Financing and Climate Change-
New standard for assessing and reporting green finance activities.
This standard provides a new framework for assessing and reporting investments and financing activities related to climate change, helps financiers assess and report on their actions, and see the real value of their contribution to climate goals.
The framework outlined in the standard specifies the principles, requirements and guidance needed. It is built around the “theory of change” approach, which aims to define what is needed for a long-term impact.
ISO 14097 covers the effects of investment decisions on GHG emissions trends in the real economy, the compatibility of investment and financing decisions with low-carbon transition pathways and climate goals, and the risk on financial value for owners of financial assets (e.g. private equities, listed stocks, bonds, loans) arising from climate goals or climate policies.
Britain’s Carbon Market Begins Trading at Higher Prices Than EU-
Britain's Emissions Trading System (ETS) kicked off on Wednesday as the UK strives to eliminate net emissions by 2050, with carbon prices reaching over 50 pounds ($70.77) per tonne and making the cost of polluting in Britain higher than in the EU.
The ETS is a method of charging power plants and other industrial entities for each tonne of carbon dioxide they emit. Britain launched its own market to replace the European Union's ETS after it left the bloc.
"Our UK ETS is more ambitious than the EU system it replaces and with today just the start of regular auctions, we are one step closer in our ambition to have the world’s first net zero carbon cap and trade market," said UK energy minister Anne-Marie Trevelyan.
Net Zero by 2050- A Roadmap for the Global Energy Sector-
The latest report from the International Energy Agency (IEA) shows that major government actions are needed immediately to ensure the opportunity of net-zero emissions by 2050 is not lost.
This special report is the world’s first comprehensive study of how to transition to a net zero energy system by 2050 while ensuring stable and affordable energy supplies, providing universal energy access, and enabling robust economic growth.
It sets out a cost-effective and economically productive pathway, resulting in a clean, dynamic and resilient energy economy dominated by renewables like solar and wind instead of fossil fuels. The report also examines key uncertainties, such as the roles of bioenergy, carbon capture and behavioural changes in reaching net zero.
One more thing: UK and EU plastics sent for recycling in Turkey dumped and burned, Greenpeace finds. Investigation reveals that ‘plastic waste coming from the UK to Turkey is an environmental threat, not an economic opportunity’
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