Stockholm (NordSIP) – The PRI has strengthened its ability to evaluate the progress made by signatories towards implementing its Six Principles (NordSIP/top1000funds.com). In an op-Ed, PRI reporting and assessment chief Mandy Kirby asserted PRI criteria for 2018 as close to being completed, with those failing to meet it placed on a private watchlist intended to provide support with implementation through engagement and support. The PRI is also introducing a “Data Portal” that will enable asset owners and investment managers to access a wealth of RI data across regions, types of asset owners and signatories, in order to support the sharing of data and, through that, best practices.
Elsewhere, ESG is gaining popularity in fixed income markets, according to Investment Magazine’s latest Infocus Report based on new statistics from the PRI, though a host of difficulties in terms of integrating ESG in fixed income by comparison with equities make it a less amenable asset and lagging on several key indicators (NordSIP). “ESG in fixed income is catching up quickly but it will take some time before it’s as widely used as in the equity space,” PRI Managing Director Fiona Reynolds commented (Investment Magazine).
Heard on E-Street
RobecoSAM’s CEO Aris Prepoudis spoke to Investments & Pensions Europe’s Susanna Rust about the ‘unprecedented transformation’ in the approach of investors to ESG (IPE.com). According to Prepoudis, the evolution among investors mirrors the adoption of ESG in the corporate sector, beginning as it did as a matter of risk management and evolving into more innovative business models that in turn created better investment opportunities.
Meanwhile, Simon O’Connor, CEO of the Responsible Investment Association of Australasia, claims that capital markets are being reshaped in ways that are bringing ESG, long considered a ‘soft issue’, centre stage, with investment markets increasingly supporting the companies with effective ESG management strategies – and punishing those without (responsible investment now accounts for one in two Australian dollars) (bluenotes.anz.com).
Quote of the Week
“We’re closer to the margin than we think. If we want to avoid 2C, we have very little time left. The public should be very concerned”
– Adrian Raftery, University of Washington. According to new research published in Nature Climate Change that paints a sobering picture of the shortfalls in the international effort to stem climate change, there is only a 5% chance Earth will avoid warming by at least 2C by 2100, or by the end of this century (the threshold set out in the 2015 Paris Climate Accord) (Guardian).
Question of the Week
Which Nordic country, known for the reliability of its energy grid, excellent fibre infrastructure, and clean renewable energy, was recently chosen as the site of not one but two Apple renewable energy centres?
Famous Last Words
We leave you this week with an article from UNSW Sydney Professor Mark Diesendorf, who responds to Nafeez Ahmed with an argument that the transition to a 100% renewable energy system is both technically feasible and replete with benefits (Insurge Intelligence).
Wishing you a happy weekend,
Your NordSIP team
Image: (c) NosorogUA-shutterstock