THIS MATERIAL IS A MARKETING COMMUNICATION.
ESG Monthly (March 2022)
This month’s highlights:
IPCC publishes the latest Assessment Report; ISSB releases draft sustainability disclosure standards;, HKEX signs MOU with CEEX to explore carbon finance, Insights on Net Zero assessment of Climate Action 100+ companies.
Commentary on ESG news and developments:
- The European Union Platform on Sustainable Finance proposed an extension to the existing Environmental taxonomy, proposing to include a new red category for harmful economic activities and an amber category for transitional activities (European Commission, March 2022).
- The Intergovernmental Panel on Climate Change (IPCC) published the third part of the Sixth Assessment Report, providing an updated global assessment of developments in emission reduction and mitigation efforts, and assessing the impact of national climate pledges in relation to long-term emissions goals (IPCC, April 2022).
- The International Sustainability Standards Board (ISSB) launched a consultation on its draft reporting standards for general sustainability-related and specific climate-related disclosures (IFRS, April 2022).
In Asian Pacific markets…
- Seven ASEAN listing exchanges, across six countries established environmental metrics recommended for disclosure by listed companies (The Business Times, March 2022).
- In Hong Kong, the Hong Kong Exchanges and Clearing Limited (HKEX) announced the signing of a Memorandum of Understanding (MOU) with the China Emissions Exchange (CEEX) to explore cooperation in developing a voluntary carbon emissions reduction programme in the Guangdong Hong Kong-Macao Greater Bay Area (HKEX, March 2022).
- In India, new corporate governance reporting rules for listed companies were made mandatory by the Securities and Exchange Board of India (SEBI) (The Economic Times, April 2022).
- In Taiwan, the National Development Council released its 2050 net-zero emissions roadmap, proposing five major decarbonisation areas: construction, transportation, industry, power and negative emissions technology. (Taiwan National Development Council, March 2022).
- In Indonesia, the rollout of its carbon tax is delayed from April to July this year due to global developments, such as inflation and the war in Ukraine (The Straits Times, March 2022).
ESG Insights from Mirae Asset:
How are Climate Action 100+ companies progressing in line with a Net Zero world?
- Climate Action 100+ released its second round of company assessments against its Net Zero Company Benchmark.
- Although the number of companies with net zero commitments continues to increase across all carbon-intensive sectors (more than 30% increase compared to last year), the actions and progress behind these commitments are not aligned with limiting global warming to 1.5°C.
- Most companies still do not include the more material emissions (for example Scope 3) in their commitments, nor do they have interim targets or explicitly commit to aligning future CAPEX with their long-term emissions reduction targets.
- Based on this assessment, Climate Action 100+ flagged a few companies’ shareholder proposals and votes for investors to take into consideration in the upcoming proxy seasons.
Source: Climate Action 100+, Mirae Asset, March 2022
Chart of the month: What are investors’ main motivations for sustainable investing?
Source: 2Degress Investing Initiative, 2020
April 29, 2022
Staying Ahead with Mirae Asset’s Latest Insights
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