ESG Performance & Attribution, TCFD, PWC, Solar, and Would You Rather
Here are 5 ESG insights you might have missed this week:
1. TCFD's 2022 Status Report-
The latest TCFD Status Report describes the steady increase in climate-related financial disclosures since 2017.
This report provides an overview of current disclosure practices in terms of their alignment with the Task Force’s recommendations. It also highlights progress associated with implementation of the TCFD recommendations over the past five years — including progress relative to key milestones identified in 2017, implementation trends and challenges that may be useful for companies beginning to implement the recommendations.
The report shows that there are nearly 4,000 TCFD supporting organizations globally, with more than 1,300 pledging their support in the last year alone. Supporters span 101 countries and have a combined market cap of over $26 trillion USD.
Link to Source: https://www.insightsesg.com/post/tcfd-s-2022-status-report
2. ESG Investment Outcomes, Performance Evaluation, And Attribution-
New paper from the CFA Institute Research Foundation.
This paper highlights key challenges faced by ESG investors and portfolio managers implementing ESG investment mandates. It then addresses these challenges focusing on relevant fund reporting, provides guidance on the information required to make informed ESG investing decisions, and proposes a performance evaluation and attribution framework to support the ESG investment management process.
Without evidence of efficacy and clearly articulated investment objectives, it is impossible for investors with ESG intent to know if they are getting what they are paying for, to distinguish between investment managers based on non-financial objectives, or to improve the likelihood of achieving positive ESG investing outcomes.
Link to Source: https://www.insightsesg.com/post/esg-investment-outcomes-performance-evaluation-and-attribution
3. PWC's Exponential Expectations for ESG-
Results of a recent PwC global survey of asset managers and institutional investors.
One of the most striking findings from our worldwide survey of 250 institutional investors and 250 asset managers, representing nearly half of global assets under management (AuM), is the exponential rate at which this transformation is taking place, as established markets grow and new markets come on stream.
As ESG-orientated mandates fast become the default—not just in Europe but also the US—the race is on to shift allocations and retrofit existing funds to keep pace with investor expectations. But as vital as the conversion efforts are, they’re only a stopgap. As our survey underlines, long-term survival and success depend on the ability of asset managers to prepare for the next big shakeup in the market by differentiating their strategy and delivering on their purpose.
Link to Source: https://www.insightsesg.com/post/pwc-s-exponential-expectations-for-esg
4. Morningstar's Voice of the Asset Owner-
A Global Survey of Institutional Investors' Priorities and Perspectives.
Seventy percent of global asset owners surveyed by Morningstar said ESG has become more material in the past five years, including 29% who said it has become much more material. The survey was conducted from March through August and included 476 asset owners, including insurers, outsourced chief investment officers and multi-manager organizations, family offices, sovereign wealth funds and pensions. Sixty-four percent of respondents managed more than $1 billion.
ESG Implementation Still Going Slowly. Only 29% of survey respondents say ESG factors are being considered for more than half of their organization’s total assets under management.
Link to Source: https://www.insightsesg.com/post/morningstar-s-voice-of-the-asset-owner
5. There’s a Mind-Bending Amount of Solar in the US Pipeline-
And there’s a lot of battery capacity too.
More than 1 terawatt of potential new power generation or storage capacity that has requested connection to transmission networks. To put that in perspective, the whole world hit 1 terawatt of installed solar capacity earlier this year.
Firstly, most new power generation planned in the US is renewable. In 2014, the total of all resources in all combined interconnection queues was about 325 gigawatts, of which 14% was solar. Today, it is 1,450 gigawatts (including energy storage projects), 46% of which is solar.
Link to Source: https://www.insightsesg.com/post/there-s-a-mind-bending-amount-of-solar-in-the-us-pipeline
One more thing: A 2-minute video with Morningstar ESG-Themed Game of 'Would You Rather'.
Find the video here: https://www.morningstar.co.uk/uk/news/227629/watch-our-esg-themed-game-of-would-you-rather.aspx
Do share your comments or the content you think our community should not miss!