Insuring Hydropower, Food-Miles, Sustainable Tech, China & HK ESG Loans, and ESG Ratings
Here are 5 ESG insights you might have missed this week:
1. Insuring a Nature Positive World-
An insurers' guide to hydropower.
This first-of-its-kind guide to hydropower insurance was developed by WWF with the support of the UN Environment Program’s Principles for Sustainable Insurance to facilitate sustainable infrastructure projects and prevent high-impact hydropower projects for the long-term protection of rivers.
The guide details seven key actions that insurers can take to assess and manage the risks posed by hydropower to people, nature and the economy.
2. Global Food-Miles Account for Nearly 20% of Total Food-Systems Emissions-
Global “food miles” emissions are higher than previously thought – accounting for nearly one-fifth of total food-system emissions.
The study, published in Nature Food, estimates the carbon footprint of the global food transport system. The authors assess the entire food supply chain – considering emissions from transporting fertilisers, machinery and animal feed as well as from moving the food itself.
They find that in a single year, global food miles were responsible for 3bn tonnes of CO2 equivalent emissions – 3.5-7.5 times larger than previous estimates.
3. Uniting Technology and Sustainability: How to Get Full Value From Sustainable Technology Strategies-
Accenture research revealed that companies with most comprehensive sustainable tech strategies perform better across the board.
Ninety-two percent of companies surveyed aim to achieve net-zero targets by 2030, which will require deployment of advanced technologies to measure, reduce and remove an organization’s carbon footprint.
However, only 7% of respondents have fully integrated their business, technology and sustainability strategies despite having ranked technology as important or very important for achieving their sustainability goals.
4. ESG Loans With Little Transparency Boom in China, Hong Kong-
A record boom of sustainability-linked loans signed by Chinese and Hong Kong firms is raising questions about limited disclosures amid broader concern about the global market for the facilities.
Firms from China and Hong Kong have signed a record $13.1 billion of such loans in 2022, surpassing the $12.6 billion for all of last year, according to data compiled by Bloomberg. Conversely, the volume of sustainability-linked loans globally has declined.
There are red flags concerning how targets are set for sustainability-linked loans, according to Chaoni Huang, head of sustainable finance in the Asia Pacific region at BNP Paribas SA. “If the targets are very marginal in terms of improvements, that is something we want to avoid at all costs.”
5. Who Benefits From The Fight Against ESG?-
While all of this may be great rhetoric to motivate a political base, what is the ultimate goal of this fight and who does it benefit?
But these politicians don’t care about the difference between ESG and sustainable investing. They are focused on what they consider to be a “woke” form of investing. Simply put, ESG investing is not woke investing – it is expanded due diligence investing.
This may make those who aren’t evolving with the new economy nervous, such as fossil fuel companies and the politicians who support them, but it is where the economy and markets are going. Ignore it at your own peril.
One more thing: The latest episode of the CFA’s Institute Sustainability podcast talks about ESG ratings What they were meant to do, and how they are misused.
Find the podcast here: https://cfaesg.libsyn.com/esg-ratings-what-they-were-meant-to-do-how-they-are-misused
Do share your comments or the content you think our community should not miss!