Investors, Lenders
and Insurers

Investors, Lenders and Insurers

The resources below have been collated to provide non-executive directors with a knowledge hub.  This brings together relevant climate change materials from regulators, standard setters and other content creators.
Resources are provided based on our Terms and Conditions.

Newly added resources

Financial Times
Attracta Mooney

Influential investor group demands ‘net-zero’ targetsClimate 100+, the influential investor group whose 518 members include BlackRock and Pimco, has written to the world’s largest greenhouse gas-emitting companies to demand they put in place a “net-zero strategy” for 2050 or earlier.14 Sept 2020

Financial Times
Attracta Mooney

How investor pressure prompted oil majors to wake up to climate changeMajor writedowns by BP and Shell in part a response to demands from asset managers increasingly interested in sustainable investing1 Sept 2020

The Guardian
Jillian Ambrose

Major investment firm dumps Exxon, Chevron and Rio Tinto stockStorebrand says corporate lobbying to undermine climate solutions is ‘unacceptable’24 Aug 2020

Morning Star
Jon Hale

Overwhelming Opposition to Proposed Regulation Limiting the Use of ESG in US Retirement PlansThe U.S. Department of Labor has proposed a rule that would limit the use of investments that consider environmental, social, and corporate governance factors in worker retirement plans subject to ERISA.20 Aug 2020

Bloomberg Green
Silla Brush & Lucca De Paoli

Greening of Europe Means Lots More Red Tape for InvestorsFund firms will soon be required to disclose their holdings’ environmental impact.18 Aug 2020

Ernst & Young Center for Board Matters

Four ESG highlights from the 2020 proxy seasonInvestor focus on human capital has magnified due to pandemic and workforce diversity is under closer scrutiny. 2020 proxy disclosures demonstrate percentage of Fortune 100 companies that voluntarily highlighted human capital initiatives has risen from 32% in 2017 to 77% in 2020.28 July 2020
Previous reports, analysis and articles
Organisation / Publication / AuthorLinkInformationDate
Institutional Investors Group on Climate ChangeConsultation: Net Zero Investment FrameworkThe Net Zero Investment Framework provides practical blueprint for investors to maximise the contribution they make in tackling climate change and achieving net zero. The Framework, a draft for consultation, is open for feedback until 25 September 2020.05/08/2020
Climate Financial Risk ForumClimate Financial Risk Forum Guide 2020Considers how firms can plan for the impact of climate policies, assess their exposure to climate-related financial risks and adapt in response. Contains 4 industry-produced chapters on Disclosures, Innovation, Scenario Analysis and Risk Management.29/07/2020
Carbon Trust
Thora Frost & Seb Beloe
Improving investor confidence in impact investmentThe impact investment market has grown rapidly as investors increasingly allocate capital on the basis of both potential financial returns and the intention to generate positive impacts. However, the risk of ‘impact washing’ is emerging as a concern.23/07/2020
London Stock Exchange GroupThe green economy report: How issuers are leading the drive to a low-carbon economyThe Green Economy Mark, introduced in 2019, highlights companies and investment funds listed on London Stock Exchange’s Main Market and AIM that are driving the global green economy. This report serves as a spotlight on the new recipients of the Mark with case studies from a selection.16/07/2020
Financial TimesWas June a tipping point for the switch to green?Findings indicate that asset managers are failing to integrate biodiversity into risk management, corporate engagement and financial decision-making.15/07/2020
Bloomberg GreenBlackRock Shows Resolve, Restraint in First Public Climate TestBlackRock’s voting record at shareholder meetings shows how it’s delivering on its January promise to put climate change at center of its strategy; it recently rejected the election of directors at Exxon Mobil and Volvo, for making “insufficient progress” on climate disclosures.15/07/2020
edieTranslating targets into temperature: CDP launches new ratings system for climate crisisCDP launches a new set of ratings gauging the temperature pathway of investment portfolios, funds and stock indices in order to outline future climate-related risks to investors.06/07/2020
Bank of England Prudential Regulation AuthorityManaging climate-related financial risk-feedback from the PRA’s review of firms’ SS3/19 plansLetter from Sam Woods ‘Managing climate-related financial risk – thematic feedback from the PRA’s review of firms’ SS3/19 plans and clarifications of expectations.01/07/2020
BlackRockBlackRock Global Summit 2020Topics explored at first annual BlackRock Global Summit in June 2020: Can sustainability accelerate recovery?01/07/2020
UNEP Finance InitiativeBeyond ‘Business as Usual’: Biodiversity and FinanceMore than half the world’s GDP is dependent on nature, which is under threat. There is urgent need for financial sector action on biodiversity. This reportsets out 9 priority sectors with large financial flows and major dependencies or impacts on biodiversity to help with understanding and target setting.30/06/2020
Make My Money MatterMake My Money MatterPensions with Intentions: movement calling for trillions of pounds invested in UK pension to build a better world.30/06/2020
FORESIGHT Climate & EnergyHow COVID-19 could supercharge the green bond marketBonds issued to raise money for projects that are both environmentally sustainable and build resilience into the world economy are proving to be a smash hit.29/06/2020
Bloomberg GreenTrump Administration Targets ESG Funds With 401(k) RuleThe Labor Department seeks to restrict where retirement plan managers can put money, which may hinder sustainability focused funds.25/06/2020
Financial Times
Billy Nauman
Jeff Ubben quits ValueAct for social investingJeff Ubben, told the Financial Times that he’s calling it quits at the investment fund he co-founded: ‘Finance is, like, done.’23/06/2020
The EconomistGreen Investing has ShortcomingsFinance has a crucial role in fighting climate change but a far more rigorous approach is needed, and soon.20/06/2020
The EconomistHow much can financiers do about climate change?The role that green investing can play must not be misunderstood or overstated20/06/2020
NatixisNGFS, ECB and ACPR: a new wave of recommendations and consultations about climate-related risksDespite crisis triggered by covid-19, financial regulators have not lost sight of the major threat to financial stability: climate change and environmental degradation. Recent publications by the NGFS, ECB and ACPR expand the growing body of resources to address these financial risks.12/06/2020
Bloomberg
Kate Mackenzie
Investors are in a race to find the best models of climate riskArticle exploring how the pandemic, which highlights the threat of sudden, non-linear risks, has dramatically accelerated emergence of new finance trend12/06/2020
ShareActionAsset managers are blind to biodiversity loss crisisFindings indicate that asset managers are failing to integrate biodiversity into risk management, corporate engagement and financial decision-making.11/06/2020
Financial Times
Patrick Temple-West
Record year for environmental, social investor petitionsCampaigning shareholders are finding common cause with big asset managers on more issues09/06/2020
EU BusinessEU states agree taxonomy for sustainable businessEU green light to proposal for first EU-wide classification system to determine what economic activities can be termed sustainable.01/06/2020
Financial Times
Attracta Mooney
Shareholder climate rebellions surge despite coronavirus crisisInvestors pile pressure on companies including JPMorgan and Rio Tinto over global warming30/05/2020
Bloomberg Quint
David Wethe
Chevron’s Investors Defy Board in Demanding Climate DisclosuresIn rare move against Chevron Corp.’s board, shareholders call for disclosure on lobbying efforts to ensure they support global warming mitigation.28/05/2020
Institutional Investors Group on Climate ChangeAddressing physical climate risks: key steps for asset owners and asset managersFive-step guidance for investors to start to identify, assess, monitor and manage physical climate risk.27/05/2020
Institutional Investors Group on Climate ChangeUnderstanding physical climate risks and opportunities – a guide for investorsGuidance for investors that sets out how to integrate the risks and opportunities presented by the physical impacts of climate change into investment processes.27/05/2020
Financial Times
Chris Flood
SEC chair warns of risks tied to ESG ratingsJay Clayton says merging separate metrics can lead to imprecise analysis.27/05/2020
Financial Times
Natasha Landell-Mills
Investors should ask if carbon promises are just hot air – Pledges by oil majors to protect the planet often clash with capital spending plansIf empty promises are used as cover for inaction, it could cause irreparable harm to our planet. Investors need to establish beyond doubt that companies’ commitments to deliver net zero are for real.17/05/2020
Bloomberg Green
Ruth Carson
Unpriceable Climate Change Stalks $31 Trillion Debt MarketBond investors are struggling to answer ‘the question of our age’: how much societies are willing to sacrifice in economic growth to counter climate change, and what that spells for the world’s $31 trillion sovereign debt market.17/05/2020
Reuters
Gwladys Fouche and Terje Solsvik
Norway wealth fund blacklists Glencore, other commodity giants over coalNorway’s $1 trillion wealth fund is excluding some of the world’s biggest commodities firms from its portfolio for their use and production of coal, including Glencore and Anglo American.13/05/2020
Financial Times
Attracta Mooney
BlackRock accused of climate change hypocrisyAsset manager voted against environmental resolutions at Australian oil groups, despite Larry Fink’s new sustainability focus.17/05/2020
Federated Hermes International GemologistCan we adapt to the new climate normal?Investors should make climate change a core theme of their interactions with businesses: all companies, not only those people invest in, must begin to focus on adapting for the rougher weather ahead.01/05/2020
ShareActionOnly 35% of European banks claim to have Paris-aligned climate strategyThe European banking sector has made sluggish progress on tackling the climate crisis in the last three years, according to new research by responsible investment organisation ShareAction.26/04/2020
Harvard Law School Forum on Corporate GovernanceThe Atmosphere for Climate-Change DisclosureAdding to BlackRock’s ask of companies, State Street Global Advisors has stated that “Beginning this proxy season, we will take appropriate voting action against board members at companies in the S&P 500 . . . that are laggards based on their R- Factor scores and that cannot articulate how they plan to improve their score.”05/04/2020
Financial Times
Attracta Mooney
Keep on climate path, urge investorsBig investors have urged companies to maintain their focus on reducing carbon emissions, even as businesses grapple with the economic fallout of coronavirus. Eight investment groups, including BNP Paribas Asset Management, DWS and Comgest Asset Management, told FTfm that tackling global warming must continue to be a priority for public companies, despite unprecedented pressure on businesses globally after government measures to tackle the pandemic left whole sectors unable to operate. The investors said businesses would be given leeway when it came to climate change this year, but warned against backtracking on targets to reduce carbon emissions.19/04/2020
Share Action
Asset owners disclosure project
Point of no returns - A ranking of 75 of the world’s largest asset managers’ approaches to responsible investmentThe 75 asset managers in this assessment manage more money than the GDP of the US, China and the European Union combined. The overall impression from our research is that much of this money, however, is currently being managed in a way which at best ignores key systemic risks and at worst contributes to them.09/03/2020
The Investment AssociationInvestors demand companies manage climate change risk ahead of 2020 AGM seasonThe IA, whose members own one third of the value of UK listed companies, for the first time is asking companies to explain in their annual report the impact climate change will have on their business model and how these risks are being measured and managed05/03/2020
SchrodersSustainable Investment Report Annual Report 2019We have a risk budgeting approach to portfolio construction. We allocate risk to themes based on conviction, and we allocate risk to alpha sources and time horizons based on factors including portfolio-specific return objectives, risk limits, expected risk/reward and conviction. ESG factors are incorporated into the risk assessment of the relative attractiveness and valuation metrics of each proposed trade.04/03/2020
EU Technical expert group on Sustainable FinanceFinancing a sustainable European EconomyOn 9 March 2020, the TEG published its final report on EU taxonomy.
The EU Taxonomy is a tool to help investors, companies, issuers and project promoters navigate the transition to a low-
carbon, resilient and resource-efficient economy.
The Taxonomy sets performance thresholds (referred to as ‘technical screening criteria’) for economic activities which:
• make a substantive contribution to one of six environmental objectives;
• do no significant harm to the other five, where relevant;
• meet minimum safeguards (e.g., OECD Guidelines on Multinational Enterprises and the UN Guiding Principles on Business and Human Rights).
The performance thresholds will help companies, project promoters and issuers access green financing to improve their environmental performance, as well as helping to identify which activities are already environmentally friendly. In doing so, it will help to grow low-carbon sectors and decarbonise high-carbon ones.
01/03/2020
The Investment AssociationShareholder priorities for 2020 – Supporting long term value in UK listed companyThis year the IA has developed expectations on four areas that members believe can be critical drivers of long-term value:
Responding to climate change, Audit quality, Stakeholder engagement, and Diversity.
This document outlines why investors consider these four issues to be important areas of focus for companies this year and also sets out their expectations for change in 2020.
14/02/2020
Financial Times
Alan Vinskey
Lex in depth: the $900bn cost of ‘stranded energy assets’These companies (Climate Action 100) have 2,910 gigatonnes (GT) of potential CO2 emissions locked away in their assets. Two-thirds of that is coal, the rest crude oil and natural gas. The question investors must ask is how long these assets can hold their value. Ben Caldecott, director of Oxford university’s Sustainable Finance Programme, says: “Oil companies need to think about [preparing] themselves for when their cost of capital soars.”03/02/2020
Financial Times
David Cumming
Why asset managers cannot be passive on climate changeClimate change is causing the most significant shift in the investment universe I have seen in my 35 years in the industry. But if asset managers are to play a critical role, they must adopt a more radical approach. Our customers, particularly the next generation, regard climate change as the biggest global threat.30/01/2020
CDPDoubling down – Europe’s low-carbon investment opportunityEuropean corporate low-carbon investment: scale, needs and benefits; Investment patterns in high-emitting sectors ; closing the investment gap ; Disclosure; CDP’s A-list; featured case study; methodology30/01/2020
Financial News
Huw van Steenis
What I learned at Davos 2020Investors and financiers can see the stakes are rising. Firms can see there is real money to be made by helping mobilise capital into financing the transition to a lower carbon economy. Some $90tn may need to be invested over the coming decade, according to the Bank of England.27/01/2020
UBSMobilizing capital to help meet climate change goals: an investor’s perspectiveAddressing the climate challenge. Against that backdrop this paper addresses two key questions:
1.Why are current investment levels so far short of what we need to reach the Paris Agreement goals? Many investors want to direct their capital toward a lower-carbon future. The existence of that shortfall has been widely discussed, yet still it persists.
2. How can asset owners invest in a climate-smart future now? How do they integrate known climate risks within their investment decisions, identify and invest in products and solutions that can contribute to a lower-carbon world, while staying abreast of the regulatory and policy developments that could put the world on track to meet the goals of the Paris Agreement? In short, how do they align their investments to a climate-smart future?
20/01/2020
Financial Times
Jonathan Ford
Don’t expect the earth from fund managers on climate changeFund managers aren’t there to drag their clients out of profitable investments into ones where returns are more meagre. That would be quixotic and almost certainly unsuccessful. For as climate-concerned investors dumped fossil-fuel stocks, thus driving down their value, their socially neutral peers would take advantage of the mispricing that came about, meaning the net effect was blunted. In the case of climate change, it could even be detrimental. Put Royal Dutch Shell out of business by dumping its shares and state-run oil companies in Asia or South America might pick up the slack, creating more polluting output.18/01/2020
BlackRock
Larry Fink, CEO
Larry Fink’s letter to CEOs and clientsBlackrock asks companies to publish SASB- and TCFD-aligned disclosures, and as expressed by the TCFD guidelines, this should include the company’s plan for operating under a scenario where the Paris Agreement’s goal of limiting global warming to less than two degrees is fully realized.14/01/2020
Hermes Investment ManagementClimate-Related Financial Disclosures Report 2019“The investment management industry sits in a unique position, where its actions could continue to compound the issues we currently face, or it could instead use intelligent and considered stewardship of capital to effect genuine and positive change. We have a responsibility as an industry, and indeed as a business, to make the right choice.
In this report, we lay out our approach to identifying and managing climate risks and seizing opportunities as a business, ranging from our involvement at the policy level in the development of climate-rated initiatives, to the way we ensure that everyone at Hermes factors the weight of the climate emergency into the work that they do.”
Saker Nusseibeh, Chief Executive
22/12/2019
Accounting for sustainabilityFinancing our future - UpdateA growing number of leaders from each part of the investment chain and wider capital markets community are taking action to direct finance towards sustainable outcomes. It is only through collective leadership and by reconnecting with individual savers, investors and  beneficiaries, that we will find solutions to the barriers which remain.11/12/2019
Influence MapUnderstanding Asset Managers’ Climate Engagement Scores and Portfolio vs Paris alignmentThe world’s 15 largest asset management groups (with collectively $37Tn in assets in all classes), are overweight in companies deploying brown technologies in four key sectors: automotive, oil & gas, electric power and coal production, representing roughly 10% of global equity markets. Increasingly, forceful engagement with the companies in these sectors to hasten their transition to low carbon technologies must occur rapidly.29/11/2019
ShareActionDecarbonising Cement: The Role of Institutional InvestorsCement accounts for 8% of global emissions. This report outlines why it's so carbon-intensive, how the industry can decarbonise, and why institutional investors need to act.09/10/2019
Climate action 100+Climate Action Progress Report 2019Provides an overview of the activities that have been undertaken and observed progress against the initiative’s goal.02/10/2019
Climate action 100+Investors are getting closer to a climate change tipping point by Stephanie Maier, director of responsible investment at HSBC Global Asset ManagementPress summary of the Climate Action 100+ 2019 progress report. Investment giants to step up calls for corporates to set net zero goals.02/10/2019
Legal & General Investment ManagementActive ownershipLGIM supported more shareholder resolutions on climate change than any of the world’s 20 largest asset managers
We published our second annual ranking of climate leaders and laggards, naming 11 companies that have failed to demonstrate sufficient action, including ExxonMobil
We co-filed our first ever shareholder resolution, which led to oil major BP adopting industry-leading climate targets 2019 report
27/09/2019
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