Weekly ESG News: Financial Services and Insurance Industry (12/2024)
News in the spotlight: GRESB launches new data solution for real assets
GRESB has launched REAL Solutions, a suite of tools for real asset managers and investors, providing insights into sustainability, resilience, and efficiency.
Products and Services
BNP Paribas Asset Management launches Global Net Zero Transition fund
BNP Paribas Asset Management has launched its first active Global Net Zero Transition equity fund, emphasizing decarbonization and Sustainable Investment. Nadia Grant, Head of Global Equities, stresses the importance of directing investments towards decarbonization solutions. Managed using behavioral finance principles, the fund aims for net-zero alignment and SFDR compliance, with 60% of investments targeting net zero by 2030 and 100% by 2040. Jane Ambachtsheer, Global Head of Sustainability, emphasizes the inclusion of a Just Transition lens in investment decisions to ensure fairness and inclusivity during the transition to a greener economy.
Morningstar launches Low Carbon Transition Leaders Indexes
Morningstar has launched the Low Carbon Transition Leaders Indexes, a series of nine new benchmarks aimed at identifying companies across all sectors leading in readiness and action towards a low-carbon economy transition. These indexes utilize Sustainalytics Low Carbon Transition Ratings to evaluate companies’ efforts in reducing carbon intensity and contributing positively to the environment. Key features include emphasizing companies that report and reduce carbon emissions, with examples like Taiwan Semiconductor Manufacturing Company and Orsted highlighted for their climate transition leadership.
Regulations, Law & Frameworks
IIGCC publishes updated Net Zero Investment Framework
The Institutional Investors Group on Climate Change (IIGCC) has updated the Net Zero Investment Framework (NZIF) to version 2.0. This revision aims to simplify investors’ transition to net-zero emissions, integrating a broad range of resources into a unified, accessible format. NZIF 2.0 updates include revised target terminology, criteria, and guidance across various asset classes. It also encapsulates best practices from three years of implementation into actionable steps for investors, supporting real economy emissions reductions. The framework is open for consultation until April 24, 2024. Feedback can be provided directly via IIGCC´s website.
SEC climate disclosure rule temporarily paused by US court
The Fifth Circuit Court temporarily halted SEC climate-disclosure rules after a lawsuit by Liberty Energy and Nomad Proppant Services. While some companies may delay compliance, others will still prepare for the 2026 deadline. Despite the setback, there’s an ongoing obligation to consider climate impacts on businesses. The SEC rules aim to standardize disclosures on carbon emissions and weather-related risks but face challenges from various groups, including states and the Chamber of Commerce. Uncertainty persists, but affected industries should continue preparing for potential future requirements.
ESG Data & Analytics
Oracle unveils cloud solution for sustainability management
Oracle Cloud EPM for Sustainability, part of the Oracle Fusion Cloud EPM suite, streamlines sustainability management by integrating data, plans, and targets. It automates data consolidation from various sources, facilitates scenario modeling, and offers AI-driven insights. The solution aids in aligning with reporting standards, detecting anomalies, and improving forecasting through embedded AI and machine learning. By enabling efficient measurement, management, and reporting on sustainability, Oracle aims to empower businesses to make a greater environmental impact.
GRESB launches new data solution for real assets
GRESB has launched REAL Solutions, a suite of tools for real asset managers and investors, providing insights into sustainability, resilience, and efficiency. The first release, REAL Benchmarks, scheduled for April, offers an interactive dashboard to analyze asset contributions to portfolio performance, focusing on energy use and emissions. Subsequent products, like REAL Statistics, will provide global datasets covering energy and greenhouse gas intensity values and trends for financial institutions, aiding in asset-level analysis and benchmarking.
Leadership Announcements
Aviva Investors expands Real Asset Responsible Investment team
Aviva Investors has expanded its Real Assets responsible investment team with the appointments of Phillipa Grant, Elizabeth Ortiz, and Jeremy Ho. Reporting to Edward Dixon, they will focus on delivering sustainability outcomes across real assets, in response to increasing demand from institutional investors. Dixon expressed confidence that the new hires will enhance Aviva Investors’ sustainability offerings, aligning portfolios with net-zero commitments.