With Australian and global regulators calling on funds to incorporate climate risk into their overall risk framework, funds are focused on ensuring the companies they invest in do not drive up the net emissions of their overall portfolio.
But assessing whether companies will be resilient in a warmer, lower-carbon world is no simple task and requires a holistic approach that takes account of the risks across the entire value chain, says Jaime Ramos Martin (main picture), portfolio manager of the global equity team at Aviva Investors, who is responsible for managing the firm’s global climate transition strategy and global equity stewardship strategy.
YKK, the Japan-headquartered fastener company, announced that it has signed the Business/Investor Letter in Support of an Ambitious U.S. 2030 Climate Goal. In the letter, organized by the We Mean Business Coalition and Ceres, signers request that United States President Joe Biden create a path for the country to cut emissions in half by 2030. The letter also urges the actions to achieve net-zero emissions by 2050. Becoming a cosigner of the letter builds on YKK’s environmental commitments dating back to its 1994 Environmental Charter, which prioritized “harmony with the environment.” In March 2020, YKK signed the Fashion Industry Charter for Climate Action. In October, the company released its Sustainability Vision 2050, and, last month, YKK’s targets for emissions reduction were approved by the Science-Based Targets Initiative, an independent organization that aids corporations in setting climate goals.
The Stock Exchange, Wall Street, New York. Photo by Aditya Vyas
The movement to achieve net-zero global greenhouse gas emissions is gaining traction and coherence, especially in the world of finance. In late March, BlackRock and Vanguard the two largest asset managers on the planet joined a growing coalition of investors in the Net Zero Asset Managers Initiative (NZAM). The initiative outlines key requirements for signatories’ commitments to net zero and provides an early benchmark for the industry. Earlier in March 2021, asset managers also received initial guidance for implementing net-zero commitments with the release of the Net Zero Investment Framework Implementation Guide, an effort led by the Institutional Investor Group on Climate Change.
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