In 2020, much of the world realised the importance of ESG and the serious issues surrounding climate change and biodiversity.
Setting Net Zero Targets
Governments and institutions are now formally committing to do more by legislating or setting carbon neutrality targets in the near future. This will have a major impact on economies and markets.
In this webinar Steve Waygood, Aviva Investors’ Chief Responsible Investment Officer (CRIO) discussed:
- Why all financial institutions need to adapt quickly to the impending challenges
- Opportunities facing superannuation funds and institutional investors in the quest for “Net Zero” targets
- The development of a comprehensive plan
- How investors can start to invest differently
Transcript (with timings)
5.05 It’s confusing and unnecessarily complex to have so many organisations such as climate action working groups, standards organisations, etc. Why are there so many?
8.03 What happens with market governance or market failure at the highest levels?
11.45 Who’s responsibility is it to manage greenwashing?
12.17 When does a company’s cost of capital respond to its sustainability credentials?
13.20 How does net zero relate to the Paris accord?
14.51 And then there’s Science Based Targets Initiative (SBTI)
16:51 Can an institutional investor actually achieve net zero today, and if not, what needs to happen? Is it just about fossil fuels?
19:06 What framework does a pension plan need to help them get to net zero?
21:08 TCFD reports for investee companies are a good place to get information. BHP’s is an interesting one in terms of their net zero goals.
23:03 The Carbon Disclosure Project, created in 2001, also has a lot of historic reporting on emissions and has huge number of investors supporting their engagement work with the top 5,000 companies.
25:42 Is greenwashing, and now ‘rainbow-washing’, still happening in the industry today? How can this be monitored?
27:38 Mark Carney spoke about 3 risks – transition, physical, litigation and liability. What are the sources of such risks?
31:02 How should an investor think about future strategies and solutions related to climate change?
34:01 When does engagement fail and divestment start?
35: 35 Things you should definitely track during the engagement process with a company.
37:18 Mark Carney’s past comments about Brookfield being net zero were challenged because it included avoided emissions. Aviva plc has also set out ambitious goals incorporating carbon removals to net zero by 2040. What’s the difference?
41:25 How are the net zero commitments being delivered? Can they be verified?
42:35 What do you do when you are looking at a company with lots of ESG challenges. Using a mining company as an example, what are the thought processes that you need to go through?
49:13 What can we expect from COP26 in November?