Sensitive intervention points

Conventional approaches to mitigating climate change are not working. Despite the actions pledged under the 2015 Paris Agreement, actual progress is falling well short. Given limited time and resources, traditional efforts such as the climate stabilization wedge approach are unlikely to be effective on their own. Physical science has shown how complex adaptive systems can cross critical thresholds (“tipping points”), such that a relatively small change can trigger a larger change that becomes irreversible, where nonlinear feedback effects act as amplifiers. We propose to examine how to exploit similar sensitive intervention points (SIPs) and amplification mechanisms in socioeconomic, technological, and political systems to advance climate change mitigation. We focus on research and policies in which an intervention kicks or shifts the system so that the initial change is amplified by feedback effects that deliver outsized impact.

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China ESG risk: the next unknown

China ESG risk: the next unknown

One of the most important, upcoming challenges at CalSTRS is how the fund should evaluate Chinese investments from a human capital and environmental standpoint, says Chris Ailman, chief investment officer at the giant pension fund.

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The future of engagement

Ben Caldecott from The Oxford Sustainable Finance Programme at the University of Oxford explains how emerging technologies, changing client preferences, new regulatory landscapes, and evolving economic geographies create new opportunities for more effective engagement and forms of active ownership.

Investors debate engagement priorities

Should investors collectively prioritise engagement issues, and if so what is at the top of the list? This was one of the topics delegates discussed at the 8th Sustainable Finance Forum run by the Oxford University Smith School of Enterprise and the Environment together with The Rothschild Foundation and the KR Foundation.

The big book of SI

It is with great pleasure that we present to you our Big Book of SI. We firmly believe in sustainability investing, and think all the stars are aligned for this investment discipline.

Principles to guide investment

Investors will play a major role, whether active or passive, in climate change mitigation. To enable prudent decision-making, we propose three physically based engagement principles that could be used to assess whether an investment is consistent with a long-term climate goal.

The power of engagement

It is called the “CalPERS’ Effect” but it could easily be called the asset owner effect, or the institutional investor effect, or the power of engagement effect. Wilshire, which is a consultant to the $300 billion Californian fund CalPERS, has provided an update on its study measuring the effect of engagement on a targeted list of companies called the Focus List.

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