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HSBC's SLBs, Double Materiality, Adaptation Gaps, The Great Reset, and The Great Simplification


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Here are 5 ESG insights you might have missed this week:


1. Mines, Pipelines and Oil Rigs: What HSBC’s ‘Sustainable Finance’ Really Pays For-

  • HSBC allegedly funneled billions of dollars into expanding fossil labeled fuels, air travel and other polluting activities and labelled it “sustainable finance”.

  • HSBC has committed to contribute up to $1 trillion in sustainable financing and investment by 2030. However, the Bureau can reveal that billions of dollars being counted towards this target are in fact helping to fuel the climate crisis.

  • In revelations that could be highly embarrassing, an investigation by the Bureau of Investigative Journalism and the BBC claimed that at least $2.4 billion of deals that HSBC counts towards this goal were funding activities that are adding to the climate crisis.

  • Link to Source: https://www.insightsesg.com/post/mines-pipelines-and-oil-rigs-what-hsbc-s-sustainable-finance-really-pays-for


2. McKinsey's The Great Reset: North American Asset Management in 2022-

  • An “all-weather” agenda can help asset management firms thrive in a tumultuous and uncertain market environment.

  • Geopolitical shocks, surging commodity prices, and rising interest rates have inverted the patterns of sectoral performance (for example, energy versus technology) that drove sustainability-related returns in prior years.

  • In addition, rapid growth of sustainable funds has attracted both political attention and regulatory scrutiny, with several highly visible enforcement actions against alleged “greenwashing” taking place on both sides of the Atlantic and a regulatory push toward more transparent disclosures. The emergence of clearer standards and higher-quality data will ultimately be helpful for the long-term growth prospects of sustainable investing, but near-term uncertainty around rules will likely lead to a pause, at least in the regulated fund segment.

  • Link to Source: https://www.insightsesg.com/post/the-great-reset-north-american-asset-management-in-2022


3. ESG Strategy Too Hot for SEC Is Attracting Fund Bosses in Europe-

  • An ESG strategy that’s too controversial for US regulators and some major ratings companies has been embraced by Fidelity International and other European financial firms as a way to safeguard long-term returns.

  • Double materiality, whereby an investor doesn’t just screen for the environmental, social or governance risks facing their portfolio, but also measures its ESG impact on the world, isn’t incorporated in Securities and Exchange Commission rules or proposals. Nor does it shape the bulk of ESG ratings provided by firms such as MSCI Inc. But in Europe, the idea is gaining serious traction in the market and among regulators.

  • Fidelity, one of the UK’s biggest money managers with more than $665 billion in assets as of June 30, now applies double materiality across all managed assets after incorporating the strategy earlier this year. In so doing, Fidelity hopes to capture financial risks that more traditional analysis might miss.

  • Link to Source: https://www.insightsesg.com/post/esg-strategy-too-hot-for-sec-is-attracting-fund-bosses-in-europe


4. Accelerating Global Companies Toward Net Zero By 2050-

  • Accenture's new research shows progress and key steps necessary to speed up efforts.

  • Accenture finds that one-third of the world's largest 2,000 companies by revenue have net-zero emissions targets, a 7% boost since late 2021. But it warns very few are on pace to reach those long-term goals, which typically have a midcentury deadline and often interim benchmarks. "Unless they accelerate progress, 93% of companies with net zero commitments will miss their targets."

  • The 93% of companies with long-term net zero targets would need to double the pace of emissions cuts by 2030 to get on track — and then speed up further. But they don't dismiss the overall efforts as greenwashing. Companies with targets have been cutting emissions more than ones without them.

  • Link to Source: https://www.insightsesg.com/post/accelerating-global-companies-toward-net-zero-by-2050


5. Adaptation Gap Report 2022-

  • UNEP’s Adaptation Gap Report 2022: Too Little, Too Slow – Climate adaptation failure puts world at risk finds that the world must urgently increase efforts to adapt to these impacts of climate change.

  • The report looks at progress in planning, financing and implementing adaptation actions. At least 84 per cent of Parties to the UN Framework Convention on Climate Change (UNFCCC) have established adaptation plans, strategies, laws and policies – up 5 per cent from the previous year. The instruments are getting better at prioritizing disadvantaged groups, such as Indigenous peoples.

  • However, financing to turn these plans and strategies into action isn’t following. International adaptation finance flows to developing countries are 5-10 times below estimated needs and the gap is widening. Estimated annual adaptation needs are USD 160-340 billion by 2030 and USD 315-565 billion by 2050.

  • Link to Source: https://www.insightsesg.com/post/adaptation-gap-report-2022




One more thing: An amazing 30-min short film from Nate Hagens on Energy, Environment, and Our Future. Titled The Great Simplification

Find the video here: https://www.youtube.com/watch?v=-xr9rIQxwj4




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UNEP’s Adaptation Gap Report 2022: Too Little, Too Slow – Climate adaptation failure puts world at risk finds that the world must urgently increase efforts to adapt to these impacts of climate change.

Accenture's new research shows progress and key steps necessary to speed up efforts. Accenture finds that one-third of the world's largest 2,000 companies by revenue have net-zero emissions targets, a