Weekly ESG News: Financial Services and Insurance Industry (39/2024)
News in the spotlight: Schneider Electric's Decarbonization Calculator helps buildings meet carbon reduction goals and boost energy efficiency.
Schneider Electric’s Building Decarbonization Calculator helps building owners assess energy-saving measures and comply with carbon reduction regulations, supporting EU net-zero goals by 2030.
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Products and Services
Schneider Electric Unveils Building Decarbonization Calculator
Schneider Electric has launched a new Building Decarbonization Calculator, designed to help building owners and operators assess energy conservation measures (ECCMs) and comply with carbon reduction regulations. With buildings responsible for 40% of the EU’s energy consumption and 36% of energy-related emissions, the tool offers strategies to meet tightening standards, such as New York City’s Local Law 97 and EU net-zero goals by 2030. Based on 500,000 building performance models, the system aids in prioritizing retrofits for maximum ROI, including integrating photovoltaic systems and battery storage. Developed in collaboration with JLL and C.scale, the calculator aims to accelerate building decarbonization efforts.
Siemens Introduces Decarbonization Business Optimizer for Buildings
Siemens Financial Services has launched the Decarbonization Business Optimizer (DBO), a cloud-based tool aimed at helping building managers, construction firms, and other industry players decarbonize their assets. This free digital tool not only provides information on decarbonization processes but also includes mechanisms for scenario modeling, optimization, and access to project financing. Leveraging data from U.S. agencies such as the Department of Energy (DOE) and the Environmental Protection Agency (EPA), the DBO tailors decarbonization strategies to specific buildings, considering factors like location, facility type, and energy usage. It also generates accurate estimates of carbon footprints and energy costs, allowing users to make data-driven decisions. The DBO suggests technologies such as solar panels, combined heat and power (CHP), and battery storage to achieve decarbonization goals while offering a summary of potential return on investment. Developed with Siemens Technology and built on AWS, the tool also taps into public datasets from the Amazon Sustainability Data Initiative (ASDI) to further refine decarbonization strategies, helping businesses of all sizes accelerate their path to net-zero emissions.
Net Zero Commitments
Trane Technologies Targets 40% Reduction in Product Lifecycle Emissions by 2030
Trane Technologies has committed to reducing the embodied carbon of its products—emissions from raw material extraction, manufacturing, and transportation—by 40% by 2030. To achieve this, the company will partner with suppliers of materials like steel, aluminum, and refrigerants and continue integrating circular design principles. This commitment builds on Trane’s 2030 “Gigaton Challenge,” aiming to cut customer emissions by 1 billion metric tons. Trane has already secured low-carbon steel agreements with Nucor and U.S. Steel, covering 20% of its annual steel purchases. CEO Dave Regnery emphasized the importance of addressing emissions across the built environment.
TotalEnergies, Shell, Equinor Complete First Commercial CO2 Storage Project in Norway
The Northern Lights joint venture, led by TotalEnergies, Shell, and Equinor, has completed the world’s first commercial CO2 transportation and storage project in Norway. Part of Norway’s Longship carbon capture and storage initiative, the project is designed to support hard-to-abate European industries in reducing their emissions. The facilities include a CO2 terminal, a 100 km subsea pipeline, and storage 2,600 meters below the seabed. The first phase, with a capacity of 1.5 million tons of CO2 annually, has been fully booked, with expansion plans underway. The first CO2 injection is expected in 2025
ESG Data & Analytics
Morningstar Survey: ESG Increasingly Material for Asset Owners
A recent Morningstar survey revealed that over two-thirds of asset owners now view ESG as more material to their investment processes, with 67% noting its increased importance over the past five years. The survey, covering $18 trillion in assets, highlighted the growing emphasis on environmental, social, and governance factors, particularly the transition to net-zero emissions and labor practices. Asset owners reported an average of 42% of their assets under management (AUM) allocated to ESG strategies, with a rise in internal ESG teams and reliance on internal resources for managing ESG initiatives. Key challenges include the impact on returns and a lack of standardized data, while asset owners remain optimistic about AI’s potential in ESG data collection and analysis.
ESG & Green Bond Issuances
FTSE Russell Launches Climate Transition-Focused Fixed Income Indices
FTSE Russell introduced two new fixed income indices aimed at helping investors meet their climate goals: the FTSE Fixed Income TPI Climate Transition Index Series and the FTSE Fixed Income TPI Focused Glidepath Index Series. These indices respond to the increasing demand for investment strategies that incorporate climate considerations beyond carbon emissions. Both leverage the Transition Pathway Initiative’s (TPI) dataset to assess companies’ preparedness for the shift to a low-carbon economy. The Climate Transition Index Series reflects global and regional fixed income markets, weighing constituents based on climate risks and opportunities, while the Glidepath Index focuses on low tracking error through a corporate bond refinancing strategy. These tools allow investors to integrate green revenues, green bonds, and carbon performance data into their portfolios, aligning with the Paris Agreement goals.
HSBC and Pollination Raise Over $1 Billion for Natural Capital Investments
HSBC Asset Management and Pollination’s joint venture, Climate Asset Management, has raised over $1 billion for natural capital projects through its Natural Capital and Nature Based Carbon Funds, as well as the Restore Fund, developed with Apple. The platform focuses on investments in regenerative agriculture, sustainable forestry, and large-scale conservation projects. These funds aim to generate carbon credits, improve biodiversity, and provide community benefits. Projects include restoring over two million hectares of land globally, with initiatives in Australia, New Zealand, Spain, Portugal, and Kenya. CEO Martin Berg emphasized the importance of aligning investment objectives with climate resilience and biodiversity gains.
Leadership Announcement
Measurabl Promotes Maureen Waters to President
Measurabl, a San Diego-based real estate ESG data provider, has promoted Maureen Waters to President, a newly created role. Previously the Chief Growth Officer, Waters brings over 25 years of experience in real estate services, technology, and venture capital. Founded in 2013, Measurabl’s platform helps real estate owners and asset managers measure and manage ESG data, covering over 18 billion square feet across 93 countries. Waters emphasized the company’s focus on customer service, innovation, and talent development. Measurabl also announced key leadership appointments, with CEO Matt Ellis highlighting their contributions to the company’s growth and innovation.