COP26 Pledges, Standards, and Protests
Here are 5 ESG insights you might have missed this week:
1. COP26: World Leaders Promise To End Deforestation By 2030-
More than 100 world leaders have promised to end and reverse deforestation by 2030, in the COP26 climate summit's first major deal.
Brazil - where stretches of the Amazon rainforest have been cut down - was among the signatories on Tuesday. The pledge includes almost £14bn ($19.2bn) of public and private funds. Experts welcomed the move, but warned a previous deal in 2014 had "failed to slow deforestation at all" and commitments needed to be delivered on.
The countries who have signed the pledge - including Canada, Brazil, Colombia, Russia, China, Indonesia, the Democratic Republic of the Congo, the US and the UK (the full list is here) - cover around 85% of the world's forests
Link to Source: https://www.bbc.com/news/science-environment-59088498
2. COP26: World Leaders Announce Global Pledge To Slash Methane-
The Global Methane Pledge aims to limit methane emissions by 30% compared with 2020 levels.
There has been a growing focus on methane as a way of buying extra time to tackle climate change. Although there's more CO2 in the atmosphere and it sticks around for longer, individual methane molecules have a more powerful warming effect on the atmosphere than single CO2 molecules.
The thrust is to cut emissions by 30% by 2030. The main focus in the short-term will be the fossil fuel industry. Most of the curbs can be achieved at little or no cost. The potential benefits are huge - scientists believe it could help the world avoid 0.3C of warming by 2040. At a time where every fraction of a degree matters, that is a major saving that could help keep the 1.5C threshold in play.
Link to Source: https://www.bbc.com/news/world-59137828
3. IFRS Foundation announces ISSB, consolidation with CDSB and VRF-
The formation of a new International Sustainability Standards Board (ISSB) to develop—in the public interest—a comprehensive global baseline of high-quality sustainability disclosure standards to meet investors’ information needs.
A commitment by leading investor-focused sustainability disclosure organisations to consolidate into the new board. The IFRS Foundation will complete consolidation of the Climate Disclosure Standards Board (CDSB—an initiative of CDP) and the Value Reporting Foundation (VRF—which houses the Integrated Reporting Framework and the SASB Standards) by June 2022.
The ISSB will sit alongside and work in close cooperation with the IASB, ensuring connectivity and compatibility between IFRS Accounting Standards and the ISSB’s standards—IFRS Sustainability Disclosure Standards.
4. CFA Institute Releases Global ESG Disclosure Standards for Investment Products-
New Standards mark the first global voluntary standards for disclosing how investment products consider ESG issues in objectives, investment strategy, and stewardship.
The release follows an industry-wide consultation to create Standards that are based on the principles of fair representation and full disclosure of environmental, social, and governance issues within the objectives, investment process, and stewardship activities of investment products. The Standards apply to all types of investment vehicles, asset classes, and ESG approaches, and aim to support investors with information that is complete, reliable, consistent, clear, and accessible.
Additional materials to be released in early 2022 include procedures for independent assurance of investment product ESG disclosures, a handbook that explains the provisions of the Standards and that provides interpretative guidance, and an optional template for ESG Disclosure Statements to facilitate easier comparison between products.
Link to Source: https://www.cfainstitute.org/en/ethics-standards/codes/esg-standards & https://www.prnewswire.com/news-releases/cfa-institute-releases-global-esg-disclosure-standards-for-investment-products-301411988.html
5. Youth Activists Protest Against Climate Inaction At COP26-
The rally led by Greta Thunberg comes as week one of the UN climate summit draws to a close amid calls for further commitments.
Two days of demonstrations, including a student march on Friday, were planned to highlight the disconnect between the glacial pace of emissions reductions and the climate emergency already swamping countries across the world, with thousands of people expected to take part.
“This is no longer a climate conference. This is now a global greenwashing festival,” Thunberg told cheering crowds. She called for an end to “empty promises”, climate commitments that are “full of loopholes” and ones that ignore climate justice.
One more thing: The story of an Australian man announcing he will quit drinking by 2050, continuing as normal until 2049, and then (at the age of 101) quitting as promised ... we cannot imagine what this refers to!
Find the story here: https://www.theshovel.com.au/2021/10/26/man-announces-he-will-quit-drinking-by-2050/
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