Portfolio alignment is a hot topic and key area of focus for the TCFD review and COP26 private finance team. But what is it really telling us and how will it influence investment decisions? This session looked at the unintended consequences of the portfolio alignment metric, and how investors can incorporate forward-looking views into their analysis and how it affects investment decisions.[vc_quotes layout=”accordion” quotes=”%5B%7B%22name%22%3A%22Eva%20Cairns%22%2C%22job_role%22%3A%22Head%20of%20climate%20change%20strategy%2C%20Aberdeen%20Standard%20Investments%20(United%20Kingdom)%20%22%2C%22content%22%3A%22Eva%20Cairns%20is%20the%20Head%20of%20Climate%20Change%20Strategy%20at%20Aberdeen%20Standard%20Investments%20and%20responsible%20for%20leading%20ASI%E2%80%99s%20climate%20change%20agenda%20to%20ensure%20a%20consistent%20and%20rigorous%20climate%20change%20approach%20is%20applied%20to%20our%20investments%2C%20solutions%20and%20communications.%20Eva%20leads%20the%20internal%20cross-asset%20class%20Climate%20Change%20Strategy%20Group%20and%20is%20responsible%20for%20TCFD%20reporting.%20She%20has%20published%20a%20number%20of%20climate%20related%20papers%20including%20%E2%80%98Investing%20in%20a%20changing%20climate%E2%80%99%2C%20%E2%80%98Climate%20change%20%E2%80%93%20Our%20approach%20Investments%E2%80%99%20and%20more%20recently%2C%20she%20co-authored%20ASI%E2%80%99s%20climate%20scenario%20analysis%20white%20paper.%20Eva%20joined%20Standard%20Life%20Investments%20in%202010%20from%20Halcrow%20Group%20Ltd%20(now%20CH2M%20Hill)%2C%20a%20global%20engineering%20consultancy%2C%20where%20she%20worked%20as%20an%20Economist%20focused%20on%20environmental%20and%20socio-economic%20impact%20assessment%20of%20energy%20and%20transport%20projects.%20Eva%20graduated%20with%20an%20MSc%20in%20Economics%20with%20Distinction%20from%20the%20University%20of%20Edinburgh%20where%20her%20dissertation%20focused%20on%20the%20social%20cost%20of%20carbon.%22%2C%22image%22%3A%2245802%22%2C%22linkedin%22%3A%22https%3A%2F%2Fwww.linkedin.com%2Fin%2Feva-cairns-6713143%2F%22%7D%2C%7B%22name%22%3A%22Dominic%20Tighe%22%2C%22job_role%22%3A%22Policy%20advisor%2C%20COP26%20Private%20Finance%20Hub%20(United%20Kingdom)%22%2C%22content%22%3A%22Dominic%20Tighe%20is%20a%20policy%20advisor%20in%20the%20COP26%20Private%20Finance%20Hub%20at%20HMT.%20This%20is%20small%20team%20of%20people%20supporting%20Mark%20Carney%20in%20a%20mission%20to%20build%20a%20private%20finance%20system%20for%20net%20zero%2C%20and%20make%20climate%20change%20a%20part%20of%20every%20financial%20decision%2C%20in%20the%20lead%20up%20to%20the%20COP26%20summit%20in%20Glasgow.%5CnSince%20joining%20early%20this%20year%2C%20Tighe%20has%20advanced%20the%20work%20of%20the%20hub%20on%20portfolio%20alignment%20metrics%2C%20and%20is%20a%20co-author%20of%20the%20TCFD%20technical%20paper%20on%20portfolio%20alignment%20metrics.%5CnHe%20is%20now%20playing%20a%20leading%20role%20in%20the%20engagement%20around%20the%20work%2C%20coordinating%20talks%20with%20industry%2C%20academia%2C%20policy%20makers%20and%20industry.%20He%20has%20spoken%20at%20numerous%20events%20to%20promote%20the%20use%20of%20alignment%20metrics%20including%20at%20the%20World%20Bank%2C%20UNFCC%20and%20NGFS.%5CnPrior%20to%20joining%20the%20Hub%2C%20Tighe%20worked%20at%20the%20Bank%20of%20England%2C%20initially%20in%20data%20analytics%20and%20later%20on%20the%20policy%20around%20%E2%80%98too%20big%20to%20fail%E2%80%99.%20He%20completed%20an%20MSc%20in%20Central%20Banking%20%26%20Financial%20Regulation%20from%20Warwick%20Business%20School%20during%20his%20time%20at%20the%20Bank%20of%20England%2C%20with%20his%20dissertation%20research%20on%20the%20green%20bond%20market.%22%2C%22image%22%3A%2245803%22%2C%22linkedin%22%3A%22https%3A%2F%2Fwww.linkedin.com%2Fin%2Fdominic-tighe-b94a5153%2F%22%7D%2C%7B%22name%22%3A%22Adam%20Matthews%22%2C%22job_role%22%3A%22Co-chair%2C%20Transition%20Pathway%20Initiative%3B%20director%20of%20ethics%20and%20engagement%2C%20Church%20of%20England%20Pensions%20Board%20(United%20Kingdom)%22%2C%22content%22%3A%22Adam%20is%20the%20director%20of%20ethics%20and%20engagement%20for%20the%20Church%20of%20England%20Pensions%20Board%2C%20as%20well%20as%20co-chair%20of%20the%20Transition%20Pathway%20Initiative%20and%20a%20board%20member%20of%20the%20Institutional%20Investors%20Group%20on%20Climate%20Change%2C%20(IIGCC).%20He%20is%20also%20the%20co-lead%2C%20on%20behalf%20of%20CA100%2B%2C%20for%20engagement%20with%20Royal%20Dutch%20Shell%20that%20led%20to%20the%202018%20joint%20statement%20on%20climate%20targets%20agreed%20between%20Shell%20and%20institutional%20investors.%5CnHe%20founded%20and%20now%20co-chairs%20the%20Transition%20Pathway%20Initiative%20(TPI)%20an%20asset%20owner-led%20and%20asset%20manager-supported%20global%20initiative%20which%20assesses%20companies%E2%80%99%20preparedness%20for%20the%20transition%20to%20the%20low%20carbon%20economy%20(and%20publishes%20this%20through%20the%20London%20School%20of%20Economics).%20He%20is%20also%20the%20lead%20for%20the%20Church%20of%20England%20on%20the%20Mining%20and%20Faith%20Reflections%20Initiative%20(MFRI)%20a%20forum%20that%20convenes%20dialogue%20between%20mining%20company%20CEO%E2%80%99s%20and%20Church%20leaders.%5CnMatthews%20also%20serves%20as%20a%20member%20of%20the%20Royal%20College%20of%20Physicians%20investment%20advisory%20board%20and%20on%20the%20Pension%20and%20Lifetime%20Savings%20Association%20(PLSA)%20stewardship%20advisory%20group.%22%2C%22image%22%3A%2245804%22%2C%22linkedin%22%3A%22https%3A%2F%2Fwww.linkedin.com%2Fin%2Fadam-matthews-84926b31%2F%22%7D%5D” title=”Speakers” el_class=””][vc_quotes layout=”accordion” quotes=”%5B%7B%22name%22%3A%22Amanda%20White%22%2C%22job_role%22%3A%22Director%20of%20institutional%20content%2C%20Conexus%20Financial%20%20(Australia)%22%2C%22content%22%3A%22White%20is%20responsible%20for%20the%20content%20across%20all%20Conexus%20Financial%E2%80%99s%20institutional%20media%20and%20events.%20She%20is%20responsible%20for%20directing%20the%20bi-annual%20Fiduciary%20Investors%20Symposium%20which%20challenges%20global%20investors%20on%20investment%20best%20practice%20and%20aims%20to%20place%20the%20responsibilities%20of%20investors%20in%20wider%20societal%2C%20and%20political%20contexts%2C%20as%20well%20as%20promote%20the%20long-term%20stability%20of%20markets%20and%20sustainable%20retirement%20incomes.%20She%20is%20the%20editor%20of%20conexust1f.flywheelstaging.com%2C%20the%20online%20news%20and%20analysis%20site%20for%20the%20world%E2%80%99s%20largest%20institutional%20investors.%20White%20has%20been%20an%20investment%20journalist%20for%20more%20than%2020%20years%20and%20has%20edited%20industry%20journals%20including%20Investment%20%26%20Technology%2C%20Investor%20Weekly%20and%20MasterFunds%20Quarterly.%20She%20was%20previously%20editorial%20director%20of%20InvestorInfo%20and%20has%20worked%20as%20a%20freelance%20journalist%20for%20the%20Australian%20Financial%20Review%2C%20CFO%2C%20Asset%20and%20Asia%20Asset%20Management.%20She%20has%20a%20Bachelor%20of%20Economics%20from%20Sydney%20University%20and%20a%20Master%20of%20Arts%20in%20Journalism%20from%20the%20University%20of%20Technology%2C%20Sydney.%20She%20was%20previously%20a%20columnist%20for%20the%20Canadian%20publication%2C%20Corporate%20Knights%2C%20which%20is%20distributed%20by%20the%20Globe%20and%20Mail%20and%20The%20Washington%20Post.%20White%20is%20currently%20a%20fellow%20in%20the%20Finance%20Leaders%20Fellowship%20at%20the%20Aspen%20Institute.%20The%20two-year%20program%20consists%20of%2022%20fellows%20and%20seeks%20to%20develop%20the%20next%20generation%20of%20responsible%2C%20community-spirited%20leaders%20in%20the%20global%20finance%20industry.%22%2C%22image%22%3A%2245805%22%2C%22linkedin%22%3A%22https%3A%2F%2Fwww.linkedin.com%2Fin%2Famanda-white-101a7515%2F%3ForiginalSubdomain%3Dau%22%7D%5D” title=”Moderator” el_class=””][vc_empty_space height=”10px”]
Research from Princeton University plots a Blueprint for how the US can achieve net zero emissions in the next decade showing the key is overcoming execution challenges including the infrastructure deployment and the mobilisation of capital and labour.
Global investors have overwhelmingly urged the SEC to provide corporate disclosure rules on climate. In submissions to the SEC many investors including CalPERS and CalSTRS said the rules should be mandatory.
Investors around the globe are stepping up their active ownership practices but CEO of PRI, Fiona Reynolds, argues that some regulatory proposals in the US and Australia could create ineffective and burdensome disclosure obligations on proxy advisors.
The proliferation of grand gestures of sustainability, such as net zero commitments, means manager due diligence is even more important and more intensive, according to global head of research at Willis Towers Watson, Luba Nikulina.
Tim Hodgson imagines a future where portfolios are managed to risk, return and impact goals via a total portfolio approach that puts every investment into a competition to best meet those goals. He outlines some questions to guide portfolio actions to get there.
Two decades after financial reporting went through a seismic shift with the agreement of international accounting standards, a similar effort is under way to agree global standards for measuring sustainability.
The expansion of the digital economy is fuelling demand for data centres, but also raising concerns about their energy use. The solution to this problem comes in the form of an attractive green real estate investment.
Leave a Comment
You must be logged in to post a comment.
Login