How can index benchmarks better align with net zero?

Here’s a note from the “Institutional Investors Group on Climate Change” (IIGCC): How can index benchmarks better align with net zero? Our latest report (also see our “Insight”) draws on the expertise of more than 30 investors, who assessed the net zero benchmarks market and the impact of EU Paris-Aligned and Climate Transition Benchmark regulations.…

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Is carbon transition risk priced by equity markets?

Here’s a note by Alex Edmans about three papers: Whether carbon transition risk is priced by equity markets is a first-order question that matters not only for finance, but the fight against global warming. The Review of Finance is publishing three papers reaching different conclusions on this question. “Are Carbon Emissions Associated With Stock Returns?”,…

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UNEP FI’s latest: “The 2023 Climate Risk Landscape”

Here’s an excerpt from this post by Zsuzsanna Tajti about UNEP FI’s latest report entitled “The 2023 Climate Risk Landscape“: 𝐓𝐡𝐞 𝐫𝐞𝐩𝐨𝐫𝐭 𝐚𝐝𝐝𝐫𝐞𝐬𝐬𝐞𝐬 𝐟𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐢𝐧𝐬𝐭𝐢𝐭𝐮𝐭𝐢𝐨𝐧𝐬’ 𝐜𝐫𝐮𝐜𝐢𝐚𝐥 𝐧𝐞𝐞𝐝𝐬: Physical climate change impacts are becoming increasingly prevalent, “affecting almost every human and natural system across the globe”. In the meanwhile, our economies are transitioning to a net-zero…

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‘Diversity and Belonging’ instead of ‘Diversity and Inclusion’

Here’s an excerpt from this NY Times article: Interest in creating more inclusive workplaces exploded after George Floyd’s murder in 2020. Many corporations turned their attention to addressing systemic racism and power imbalances — the things that had kept boardrooms white and employees of color feeling excluded from office life. Now, nearly three years since…

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MSCI’s “Net Zero Tracker”

Here’s this note from David Carlin about MSCI’s “Net Zero Tracker”: Terrific analysis by MSCI from their net-zero tracker report! While progress continues on disclosure, companies are rapidly burning through the 1.5 C carbon budget. Some key takeaways: 1. Listed companies are on a path to warm the planet by 2.7 C 2. Only 19%…

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What we need to know about corporate governance—but don’t

Here’s an excerpt from this blog by Cydney Posner about this recent study that I found quite interesting: In this paper, “Seven Gaping Holes in Our Knowledge of Corporate Governance,” from the Rock Center for Corporate Governance at Stanford, the authors observe that it “is extremely difficult to produce high-quality, fundamental insights into corporate governance.”…

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World likely to breach 1.5C climate threshold by 2027

Here’s the intro from this article from “The Guardian”: The world is almost certain to experience new record temperatures in the next five years, and temperatures are likely to rise by more than 1.5C above pre-industrial levels, scientists have warned. The breaching of the crucial 1.5C threshold, which scientists have warned could have dire consequences,…

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