ESG in 2022
Climate risk, ESG disclosures, and ESG data
A recent article from CFA Institute's Enterprising Investor blog reminds investors that simply because a carbon-intensive asset changes hands, this does not mean that the data or related climate risks should no longer be accounted for.
Other papers discuss opportunities that may arise during the energy transition, sustainable debt issuance, and the difference between scope 1, scope 2, and scope 3 emissions. Climate risk assessment, environmental disclosures, ESG regulation, and ESG data are likely to be key themes for investors in 2022.
When Assets 'Disappear' ESG Data Needs Remain (Enterprising Investor blog, 2021)
In an effort to decarbonise their portfolios, oil and gas majors sometimes offload their most carbon-intensive assets. This article discusses the ESG data needs and climate risks that remain on the table during this phase of the energy transition.
Natural Capital: An institutional investor's guide (HSBC AM, 2021)
In order to address present-day climate and biodiversity needs on a global scale, it is estimated that $8 trillion of additional investment will be required by 2050.
Portfolio Construction with Climate Risk Measures (Amundi, 2022)
For compliance reasons, this paper is NOT accessible in the United States
Theo Le Guenedal and Thierry Roncalli, quantitative research specialists at Amundi Asset Management, discuss several different climate risk metrics and the process of portfolio optimisation when taking into account scope 1, 2, and 3 carbon emissions.
Decarbonisation and the Energy Transition (Wellington Management, Jan 2022)
Massive spending plans are already underway as governments increasingly commit to net zero emissions pledges. Wellington Management describes this as potentially the biggest capital cycle of our lifetime. It is also a process that will likely create asset mispricing, resulting in many investment opportunities along the way.
ESG in 2022: 10 Things to Look Out For (Latham & Watkins)
Law firm Latham & Watkins outlines ESG-related themes for 2022, including corporate reporting, supply chains and scope 3 emissions, COP27, and environmental taxonomies.
ESG Credit Trends for 2022 (Sustainable Fitch)
This 15-page report covers updates on sustainable bond issuance, ESG disclosures, emissions abatement costs, and other environmental and social issues relevant to ESG credit investors.
Podcast: Navigating Climate Action and Regulation (Neuberger Berman, 2021)
For compliance reasons, this paper is only accessible in certain geographies
In this podcast, a panel of internal and external ESG experts discuss ESG disclosure trends and actively investing in a way that is in line with net zero emissions targets.
