SUSTAINABLE FINANCE
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CREDIT: ØRSTED
Regulatory developments have reinforced the importance of governance. The UK’ s Financial Reporting Council’ s revamped Stewardship Code now requires asset managers to report not just on policy but on activities and outcomes, particularly regarding ESG factors.
Aligning investment strategies with global sustainability goals Asset managers are increasingly aligning their investment strategies with broader sustainability goals, such as the United Nations Sustainable Development Goals( SDGs) and the Paris Agreement on climate change.
The SDGs provide a comprehensive framework for addressing global challenges, from poverty and inequality to climate action and biodiversity.
According to the United Nations Conference on Trade and Development, the investment gap to achieve the SDGs in developing countries alone is about US $ 2.5tn annually.
The Net-Zero Asset Owner Alliance The Net-Zero Asset Owner Alliance is a prime example of collective action. This group of asset owners has committed to transition their portfolios to net zero carbon emissions by 2050, in line with the Paris Agreement.
“ We all know that avoiding the worst impacts of climate change is crucial for the stability and prosperity of global markets”
HEATHER ZICHAL, GLOBAL HEAD OF SUSTAINABILITY, JPMORGANCHASE sustainabilitymag. com 143