SEC warns ESG funds and advisors
Canadian Investment Industry Insights, Mastercard carbon calculator and more
The Responsible Investor aims to keep finance and investments professionals abreast of developments in sustainable finance and the economics of climate change.
If you are an advisor selecting ESG funds for clients, make sure the funds are actually aligned with the way you depict ESG to your clients. If your client has very specific criteria surrounding exclusions, make sure the funds you select follow the same criteria and have a monitoring process in place. Make sure your compliance personnel and procedures are up to speed on ESG matters.
We have arrived at the painful realisation that the idea of net zero has licensed a recklessly cavalier “burn now, pay later” approach which has seen carbon emissions continue to soar. It has also hastened the destruction of the natural world by increasing deforestation today, and greatly increases the risk of further devastation in the future.
The calculator gathers information using a methodology called the Doconomy Åland Index, which collects data from Trucost, an ESG analysis company that estimates businesses' hidden costs of using unsustainable natural resources.
As much as 20% of the world’s groundwater wells may be facing imminent failure, potentially depriving billions of people of fresh water.
“We found that this undesirable result is happening across the world, from the western United States to India,” said Debra Perrone, a water resources expert at the University of California, Santa Barbara, and co-author of the study.
Bad crop weather in key-producing countries is a major culprit. Dryness in the U.S., Canada and France is hurting wheat plants, as well as corn in Brazil. Rain in Argentina is derailing the soy harvest. Add to that the fears of drought coming to the American Farm Belt this summer.
Meanwhile, China is gobbling up the world’s grain supplies, on track to take in its biggest haul of corn imports ever as it expands its massive hog herd.
Given the growing spotlight on ESG factors and long-term value creation, EY conducted a survey of Canadian asset managers to better understand what their clients were asking them, how they are approaching ESG now and beyond, and how they are evolving their operating model as a result.