“Greed” beats “fear” when it comes to climate action

Here’s this note from Nawar Alsaadi: This European Investment Bank paper on what drives European companies to invest in green measures offers a fascinating insight into the power of climate opportunity to trigger climate action as opposed to the power of fear in inciting climate action. The paper looked at various corporate triggers for climate…

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How engaging with stakeholders on ESG reduces “downside risk”

Here’s this note from Alex Edmans: “ESG Shareholder Engagement and Downside Risk” is published in the current issue of the Review of Finance. The authors obtain proprietary data on 1,443 ESG engagements by a large UK institutional investor and find the following: 1. ESG engagements reduce both Value at Risk and the Lower Partial Moment,…

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Have the coral reefs already crossed the tipping point?

Here’s the intro from this article by “Grist”: About a year ago, the seas got unusually hot, even by our current, overheated standards. Twelve months of broken records later, the oceans are still more feverish than climate models and normal fluctuations in global weather patterns can explain. When the seas turn into bathwater, it threatens…

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How ESG matures over time as companies make progress

Here’s an this note by Nawar Alsaadi: This framework by Bain & Co. provides an excellent segmentation of a company ESG integration maturity. The framework which I re-created, with slight enhancements, in the attached table is segmented into four levels: Beginner, Emerging, Mature, and Pioneer. At each level, the scope of data collected, its quality,…

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The latest board diversity stats for public companies

Among other interesting stats, this study by KPMG and ESGauge detail various board diversity disclosure stat as of the end of last year: 1. Director racial and ethnic diversity: – 97% of S&P 500; 85% of Russell 3000 disclose board’s racial/ethnic diversity – 42% of S&P 500; and 20% of Russell 3000 disclose race/ethnicity by…

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Compilation of thought-provoking climate blogs

Here’s a good item to read from Harald Walkate about this excellent compilation: I’m pleased to report that the series of climate blogs that I guest edited for European Corporate Governance Institute (ECGI) in ’23 has now been bundled in an easily accessible pdf. A good reason for me to reread these contributions and my…

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How ESG investing needs to ramp up to $1 trillion annually

Here’s this note by Andreas Rache: Climate finance will need to increase to $9tn a year in 2030 to remain aligned with the Paris Agreement (up from $1.3tn in 2022). It is a no-brainer to make these investments, especially when considering that “damages are actually already considerably larger than mitigation costs” (Kotz et al.’s study,…

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AI value preservation and the paradox of AI

Here’s an excerpt from this note by Sean Lyons: The recent increase in the proliferation of A.I. technology clearly presents extraordinary benefits, opportunities, challenges, and threats to the corporate world and to humankind in general. In business this can be viewed in terms of the potential for exceptional rewards accompanied by equally exceptional risks. The…

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A 7-minute video to combat fake climate bashing

Here’s a note from Dr. Raj Thamotheram: John Kerry recently called on scientists to lead the new debates about the fake news on the climate crisis and he has – rightly IMO – provoked some dropped jaws amongst leading climate scientists. Katharine Hayhoe responded to say scientists have been leading for decades & the facts…

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EU requires all new buildings to be zero emissions by 2030

Here’s the intro from this note by “ESG Today”: The European Council announced today that it has formally adopted the revised Energy Performance of Buildings Directive (EPBD), with new rules aimed at reducing energy use and emissions from buildings across the EU, including targets for all new buildings to be zero emissions by 2030, and…

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