Adaptation is expected to feature highly on the agenda of the United Nations’ climate change summit in Brazil next month as the effects of climate change are increasingly felt. In tandem, European pension funds are increasing their focus on physical climate risk as data improves.
As previously reported by IPE, the US is in the midst of a wave of capital market reforms that will give more power to company management at the expense of investors. Last month Exxon, a symbol of defiance against sustainability-related stewardship and engagement, announced it would be rolling out a new system that automatically votes eligible retail shares in line with management, unless specified otherwise.
According to Schroders, the system could undermine institutional investor voices.
One of the key themes of 2025 so far has been how asset managers’ positioning on sustainability has fed into European asset owner decisions to pull mandates due to concerns about a misalignment. But the picture is not homogeneous.
In Sweden, buffer fund AP3 recently revealed it was sticking with BlackRock, saying it had engaged with the asset manager to find out what its exit from climate finance initiatives meant and that AP3 managed the voting on behalf of all shares held by BlackRock.
This week, the European Union parliamentary committee on legal affairs will vote on the sustainability reporting omnibus, potentially approving a position that the scope of the Corporate Sustainability Reporting Directive (CSRD) be reduced to just companies with 1,000 employees and €450m turnover.
On transition plans, the MEPs’ position, in line with that of EU member states, looks set to be that although companies should adopt them, they will not be required to implement them.
Last month, investor groups weighed in on the EU’s corporate reporting advisers’ proposed cuts to the European Sustainability Reporting Standards (ESRS), which are part of the EU’s initiative to streamline sustainability rules.
In the UK, meanwhile, the government has been told that policy-making on transition plans is causing confusion among pension schemes.
Items to note:
- The Impact Investor Conference 2025 is on 11 November in The Hague Conference Centre New Babylon, The Netherlands
Susanna Rust
ESG Editor
This news briefing was published earlier in the week. If you would like to receive it regularly, on your IPE profile, go to My Newsletters and select any from the list.
No comments yet