Level 2 Recent Developments Flashcards
Name a few market drives in the ESG space
Investor demand Investor initiatives Global challages Public perception Regulatory framworks
What are the top challenges defined by the WEF in terms of LIKELIHOOD?
Extreme Weather Climate action failure Natural disasters Biodiversity loss Human made environmental disasters
What are the top challenges defined by the WEF in terms of IMPACT?
Climate action failure Weapons of mass destruction Bio diversity loss Extreme weather Water crisis
How many are the UN sustainability goals?
17
European market trends . SRI strategies 2017
Name the most common strategies
Exclusions
Engagement and voting
ESG integration
Investor initiatives. Motives
What are the main motives for investors joining initiatives in the sustainability area?
Active commitment Public awareness raising Competititve advantage info and knowledge gathering prevent regulation
Investor initiatives. Name a few of the current initiatives that are out there?
UN principles for responsible investment Carbon disclosure project UN global compact International corporate governance network ICGN UNEP FI CLimate bond initiative
Describe the United Nations Principle for responsible investment
What is the focus and what does it require
A group of large global institutional investors launched the UNPRI under the patronage of the uN
It voluntary with clear focus on the promotion of sustainable and responsible investment
It requires a commitment to the six principle
It also requires mandatory annual reporting
What is the carbon discloure project?
It request carbon data on behalf of its signatories
Describe the 2018 High level export group on Sus finance HLEG
Established by the European commission
20 senior experts from different part of the society
1 Mandated to provide advice to the commission on how to steer the flow in to sustainable investments
2 Indenty stets that should be taken to protect the stability of the financial system from risks related to the environment
3 deploy these policies on a pan european scale
Descirbe the Technical export group on sus finance? TEG
Established by the European commission
35 member
Work both trough formal plenaries and sub group meetings.
The commission intends to clarify how investors should integrate sustainability risks and other factors in the areas of organisational requirements, operating conditions , risk management and target market assessment
Describe the Task force on climate-related financial disclosures
Develops a voluntary consistent climate related financial risk disclosure
it recommends to disclose
1. Governance around climate related risks
2. Strategy and the potential impact climate have on the organizations strategy and fin planning.
3 Risk management. How the org identify, asses and manage climate related risk.
4.Metric and targets used to assess and manage climate related risk and opportunities
Speed of ESG integration is low given the high interest. What are the Impediments (hinder) to integrate ESG
Perceived lack of a business case ESG data Absence of clear standards Various behavioural biases (short termisn) biases and belifes Lack of investor education MIss/uncelar regulation
What is the Taxonomy under the Action plan for sustainable growth
A harmonised criteria for determining wether and economic activity is environmentally sustainable; basis for the future establishment of standards and labels for sustainable financial products
Main findings of the ESG meta Study on ESG and performance. How many % are positive in the ESG_CFP correlation
90% of the 2000 studies displayed a positive ESG-CFP relationship.
