The Climate Game, Sustainable Debt, Mastercard, Shadow Boards, and Doodles

1. The Climate Game-

Can you reach net zero by 2050?
Play to be the Minister of the Future to see if you can save the planet from the worst effects of climate change.
This game was created by the Financial Times. It is based on real science and reporting — however, it is a game, not a perfect simulation of the future. The emissions modelling was developed in 2022 by the International Energy Agency (IEA). The scenarios used in the IEA’s “Net Zero by 2050” report were recalculated to track the temperature outcomes for specific pathways used in the game.
Link to Source: https://ig.ft.com/climate-game/

2. Sustainable Debt Global State of the Market 2021-

Climate Bonds Initiative flagship report details the size and substance of green and other labelled bond markets.
This, the 11th iteration, has been extended and now includes analysis of the green, social and sustainability (GSS) markets, plus sustainability-linked bonds (SLBs), and transition bonds.
The publication represents the most extensive analysis available in the labelled finance space with features on taxonomies and sovereign bonds.
Link to Source: https://www.climatebonds.net/resources/reports/sustainable-debt-global-state-market-2021

3. BlackRock’s 2030 Net-Zero Statement-

BlackRock expects 75% of company and government assets to be net zero-aligned by 2030.
The forecast covers emissions tied to 77% of its total assets at the end of September 2021, some $9.5 trillion, but excludes those such as municipal bonds for which there is currently no reliable data.
Setting a 2030 goal is a central requirement for members of the Net Zero Asset Managers Initiative (NZAMI), a sector-wide group of money managers aiming to get to net-zero emissions across their assets. BlackRock joined the NZAMI in March 2021.
Link to Source: https://www.reuters.com/business/sustainable-business/blackrock-expects-75-company-govt-assets-be-net-zero-aligned-by-2030-2022-04-14/

4. Mastercard Links Compensation for All Employees to ESG Goals-

Mastercard will begin including achievement of the company’s ESG goals in the calculation of bonus pay for all employees.
The forecast covers emissions tied to 77% of its total assets at the end of September 2021, some $9.5 trillion, but excludes those such as municipal bonds for which there is currently no reliable data.
The new model will apply to employee bonus pay beginning this year, and will continue to focus on the key ESG focus areas of emissions, financial inclusion and the gender pay gap. According to Miebach, these factors were selected “because we have a substantial impact in these areas and because they closely align with our vision.”
Link to Source: https://www.esgtoday.com/mastercard-links-compensation-for-all-employees-to-esg-goals/

5. Shadow Boards Engagements-

Borrowing from activist hedge funds playbook is something mainstream institutional investors need to seriously contemplate.
The issue of limited engagement success, in the absence of large-scale divestments, remains a perennial ESG hurdle that the responsible investing industry is yet to resolve. Building on this, I would like to focus on engagement in the context of net zero transformation, and why the current engagement model is not fit for purpose.
The transition to a sustainable net zero economy requires a fundamental transformation of sectors, industries, and business models. Transformations of this nature require a deep understanding of the micro and macro factors underpinning the value creation and capture process of a multitude of companies and industries. The knowledge base for this understanding tends to exist within companies, at the board level and not at the shareholder level.
Link to Source: https://www.linkedin.com/pulse/shadow-boards-engagements-nawar-alsaadi-fsa-sipc

One more thing: If you didn’t use Google on April 22th, you may have missed the Earth day doodle visualizing climate change.

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