Our responsible investing specialists have published a two-part guide explaining the impact of climate change on business and investing. Download your PDF copies below.
IT’S NOT easy for business managers and investors to understand the implications of climate change. The latest IPCC report which made headlines in August 2021 runs to a daunting 3900 pages.
Pendal Group’s responsible investing specialists have prepared a two-part climate change guide for financial advisers and investment professionals.
In late 2020 we published part one, Climate Change and Business: Key Concepts, which explains how major climate-related issues create risks for businesses.
Now we have published part two, Climate Change and Investing: Key concepts, which covers the implications for investing.
We invite you to download PDF copies below.
About Pendal Group
Pendal is an independent, global investment management business focused on delivering superior investment returns for our clients through active management.
We believe sustainability considerations ultimately drive higher and more stable investment returns over the long term.
Pendal Group has a proud heritage in responsible investing, extending back decades. Our specialist responsible investing business Regnan includes highly experienced ESG research and engagement experts and offers a growing range of investment strategies.
Find out about some of our responsible investing strategies:
Regnan’s head of advisory, Susheela Peres da Costa
INVESTORS may think they invest in companies and markets. But they’re really investing in economies and societies.
It’s not until we experience a crisis like COVID-19 that this becomes clear.
When beverage producers start making hand sanitiser and car manufacturers start making hospital ventilators, it becomes clear there is limited value thinking about companies in isolation from their social context. When even the most blue-chip of companies have found themselves needing society’s generosity, the social contract becomes apparent.
As we recover, the community will expect businesses to meet their end of this bargain.
Susheela Peres da Costa, head of advisory at responsible investment and stewardship leader Regnan, makes these observations in the latest edition of Responsible Investor.
The article, COVID-19 shows universal owners need active ownership to safeguard social assets and advocate for principled political economy, can be found here.
Social assets such as population health, intellectual investment, cohesive communities and strong, trustworthy institutions are the foundations on which economies grow and markets flourish, Ms Peres da Costa says.
“If Environmental, Social and Governance (ESG) is about seeing the forest and the trees, COVID-19 shows how both depend on strong roots in solid ground.
“These foundations are all but invisible in better times. For this reason, they are easily undermined when we are inattentive to their maintenance.
“But widely-diversified investors are exposed to social assets and the performance of the economy, and need better metrics that enable them to monitor their strength and resilience through good times as well as bad.
“The interests of individual market actors can be in tension with the healthy whole.
“Investors also need ways to ensure those roots are not undermined for a one-off windfall. It is important to empower decision-makers who can prioritise social assets and thus the economy when faced with competing interests of market actors.”
Regnan is a leading provider of ESG research, engagement and advisory services.