The SEC, Long-Term Investors, LinkedIn Green Skills, and Cultured Foods
Here are 5 ESG insights you might have missed this week:
1. SEC Issues Long-Awaited Climate Disclosure Proposal-
After a year of pre-proposal development, drama and general anticipation, the SEC voted to issue its proposed rules on climate disclosures.
The proposal weighs in at 510 pages and is comprehensive. Based on both TCFD and Greenhouse Gas Protocol regimes, it stays focused on the SEC’s existing definition/interpretation of financial materiality and doesn’t attempt to wade into double or dynamic materiality of other ESG disclosure frameworks.
In terms of timing/phase-in, the proposal contemplates a phase-in period that would first require compliance from the largest filers in 2024 assuming the final rule is adopted and effective by December 2022.
2. Standards Bodies Agree to Collaborate on Sustainability Disclosures-
The IFRS Foundation and the Global Reporting Initiative hope the move will reduce the reporting burden for companies.
Members of the foundation and the initiative will join each other’s consultative bodies, and the International Sustainability Standards Board (ISSB) and the Global Sustainability Standards Board will coordinate their work programs and standard-setting activities.
The organizations said they hoped their coordination would reduce the reporting burden for companies while putting financial and sustainability reporting on an equal footing.
3. Do Investors Understand the Long-Term?-
"Long-term investor" is one of the most ubiquitous terms in finance, used over 3,000 times on the websites of the world’s 20 largest asset managers. But what does it really mean?
Asset managers and asset owners think they’re long-term investors, but they don’t agree with each other on what that means. Ironically, most investors are not long-term investors, according to their own definitions.
We conducted 60 in-depth interviews with asset managers and asset owners to explore the question as to what it means to be a long-term investor. The interviews and linked survey sought to identify how financial institutions define the term “long-term investor”, the extent to which they see value in long-termism for financial and sustainability performance, and the mechanisms to move towards more long-term financial markets.
4. Stanford's Research Initiative on Long-Term Investing ("SLTI")-
Stanford University has launched a new research initiative to study long-term investing.
With more than 100 trillion in financial assets under management, the world's Long-Term Investors - i.e., pensions, sovereigns, insurance cos - quite literally put the capital in capitalism.
As such, any attempt to improve how capitalism functions or addresses critical challenges must begin with a deeper understanding and appreciation for the role that LTIs play in our world. This is what the Stanford Research Initiative on Long-Term Investing (SLTI) seeks to achieve: to analyze, understand, and augment the investment decisions of LTIs.
Link to Source: https://longterminvesting.stanford.edu/
5. Global Green Skills Report 2022-
New report from LinkedIn using all of their data provides insights on how our society is transitioning to a greener economy.
The Global Green Skills Report 2022 provides new data on green skills and jobs from all across the world, to empower policymakers, governments and business leaders with actionable insights to help them transition the global workforce to a green economy future.
At LinkedIn, we call it the Great Reshuffle, an unprecedented moment in history where we are reimagining the future of work. People are actively acquiring new skills and pursuing new ventures. Employers are reinventing business models and creating new markets. And all of this economic upheaval, which would normally play out over the course of decades, is being compressed into a couple of years.
One more thing: A post from Visual Capitalist on 5 reasons why cultured foods are here to stay.
Find the infographic here: https://www.visualcapitalist.com/5-reasons-why-cultured-foods-are-here-to-stay/
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