Climate change investing
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Special ReportCase study: Ilmarinen - Building a climate-focused future
Finland’s second-biggest pension provider is a keen investor in exchange-traded funds (ETFs), having allocated more than €6bn to a range of equity vehicles in recent years.
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FeaturesDutch suggestions for fine-tuning pension funds’ climate stress tests
In 2022, the European Insurance and Occupational Pensions Authority (EIOPA) coordinated its triannual stress test for the European pension fund sector. The 2022 IORP stress test (the European Institutions for Occupational Retirement Provision stress test) was EIOPA’s first climate stress test for IORPs and consisted of three parts: first, participating IORPs assessed the effects on their financial positions of a “disorderly climate transition” scenario. Second, in addition to the above mandatory part, the stress test provided for the option to develop an alternative approach to the mandatory stress test. Five Dutch IORPs performed this voluntary test using a jointly developed common approach. Third, the stress test also assessed IORPS’ ESG investment policy with a qualitative questionnaire.
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FeaturesInvestors do not care about physical climate risks
One of the most pressing questions facing today’s climate research is whether climate change risks are reflected in stock prices. In a peer-reviewed study* recently accepted for publication in Journal of Banking and Finance, we found that investors only care about climate change risks when policymakers intervene, not about physical climate risks.
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Special ReportDecarbonisation outcomes: preparing portfolios for a low-carbon world
The climate challenge is clear, and more investors are looking to include climate investing solutions in their portfolios. Next to funding climate solutions and enabling negative emissions, the decarbonisation of portfolios is one of the most important objectives for climate investing.
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NewsAkademikerPension sees positive return impact after shedding last oil/gas major
Danish occupational pension fund divests Italy’s Eni, excluding last large upstream oil and gas company in its portfolio
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NewsInvestors call on Rishi Sunak to not backtrack on climate change
IIGCC, PRI and UKSIF, among others, expressed concern with the prime minister’s proposals to ‘backtrack on vital policy measures that support the UK’s transition to net zero’
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NewsESMA focuses on digital change and green transition
In 2024, ESMA will develop rules for sustainable finance as part of the new European Green Bond Regulation
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NewsExxonMobil Pension Plan gets first ever TPR fine on climate change reporting
In a response to the Regulator, the trustees assured TPR they ‘took their climate reporting obligations seriously and that their non-compliance was inadvertent’
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News190 investors write to companies over management of nature
Launch reflects growing focus on nature in sign of defiance against US clampdown on collaboration
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NewsInvestor group rejects basis for UK government delay of net zero policies
‘Staying the course not incompatible with addressing immediate cost of living concerns’
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NewsGFANZ moves to define four types of transition finance
Net zero body invents ‘Expected Emission Reductions’ calculation in bid to quantify impact of such investments
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NewsUS Treasury releases net zero financing and investment principles
Secretary Yellen says goal is to ‘affirm importance of credible net zero commitments’
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NewsTNFD launches final disclosure recommendations
TNFD activities coincide with legislation on nature-related disclosures mooted in some countries
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NewsNorway’s SWF steps up climate demands from companies
NBIM says firms need to move on from disclosures and target-setting to execution phase
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NewsFinance sector ‘not in the driving seat’ on green transition, says IIF official
Finding global consensus and alignment on financial sector policy and regulation around climate risk and transition planning is difficult
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NewsSFDR ‘likely helped’ reduce greenwashing risks – study
CFA Institute found that asset managers are mostly ‘appropriately disclosing’ ESG approaches, but there is room for improvement
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NewsNorthern Trust hones in on digital carbon credits platform
First official live transaction planned for later this year
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NewsMismatch of climate objectives between fiduciary managers and trustees – study
Over 50% of fiduciary managers surveyed did not give explicit climate-related requirements for underlying funds in their investment strategies
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NewsAllianz discloses first net-zero transition plan with 2030 targets
The insurer plans to support the ramping up of renewable energy by investing an additional €20bn in climate and cleantech solutions
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NewsInvestor groups set out elements of effective climate policy
Investor Group produces report as part of move to refine approach to policy advocacy
