US Fed's Climate Scenario Analysis, Exxon, Anti/Pro Davos, and O&G Football Flex
Here are 5 ESG insights you might have missed this week:
1. US Fed's Pilot Climate Scenario Analysis-
The US Federal Reserve Board has published instructions for its first climate scenario exercise.
The Board is conducting a pilot CSA exercise to learn about large banking organizations’ climate risk-management practices and challenges and to enhance the ability of both large banking organizations and supervisors to identify, measure, monitor, and manage climate-related financial risks.
Six of the largest American banks will need to complete the exercise by July 31st: Bank of America, JPMorgan Chase, Citi, Goldman Sachs, Morgan Stanley, and Wells Fargo.
2. Exxon's Climate Research Accurately Projected Global Warming, Study Finds-
ExxonMobil's own climate science research, which began in the 1970s, accurately predicted the pace and severity of global warming.
The study provides more evidence that Exxon's communication to investors and the public through the 21st century, which has played down the threats posed by climate change and cast computer models as uncertain, did not match what executives were told internally.
The research, dismissed by Exxon, may play a role in ongoing legal action against the company for allegedly misleading investors and the public about the dangers of global warming.
3. Legislation to Boycott ESG May Cost State Taxpayers up to $700 Million in Excess Payments-
Conservatives pushing anti-sustainable legislation and directives in six states could result in taxpayers wasting hundreds of millions in higher municipal bond interest payments.
The higher interest rates are the result of less competition between finance firms for municipal bonds, as a result of the anti-sustainable investing legislation that forces state treasurers to boycott major banks and asset managers that historically have bid on the muni bond issuances.
The analysis found the aggregate increase in interest costs for the bonds issued in the analyzed states in the last 12 months.
4. Anti-Davos: The Worst Thing About Davos? The Masters Of The Universe Think They Are Do-Gooders-
Will the world’s most cutthroat plutocrats and cold-blooded status-seekers stop trying to convince us they have a heart of gold?
Davos and similar conclaves can only be understood as performances. They are the stage upon which the Masters of the Universe act out the dramatic narrative of their own lives. They are exercises in mutual self-affirmation: we’re here, and we are important.
The only useful thing that happens at Davos each year is the release of Oxfam’s report on economic inequality, a document that always drives home exactly why Davos is a monstrosity. This year, Oxfam found that the richest 1% of people had pocketed two-thirds of all the wealth created in the past two years.
5. Pro-Davos: New Initiative to Help Unlock $3 Trillion Needed a Year for Climate and Nature-
Philanthropic heavyweights and other partners unveiled a new push to vastly scale up combined public, private and philanthropic climate finance.
"Giving to Amplify Earth Action" aims to "help unlock the $3 trillion of financing needed each year to reach net zero, reverse nature loss and restore biodiversity by 2050." The many backers of the initiative launched at the World Economic Forum in Davos include the Bezos Earth Fund, African Climate Foundation, IKEA Foundation, the Rockefeller Foundation and more.
The goals are ambitious and it has backing from a suite of deep pockets. But the standard caveats apply — targets and reality are only occasional synonyms.
One more thing: The ultimate O&G flex. Messi, C. Ronaldo, Mbappe, Neymar, and others in a mid-season friendly match in Riyadh.
Find the highlights here: https://www.youtube.com/watch?v=ImntsoxN9_4
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