{"id":5296,"date":"2022-06-08T20:24:06","date_gmt":"2022-06-08T20:24:06","guid":{"rendered":"https:\/\/design302.webdemoserver.online\/?p=5296"},"modified":"2022-06-09T10:37:25","modified_gmt":"2022-06-09T10:37:25","slug":"decarbonizing-portfolios","status":"publish","type":"post","link":"https:\/\/design302.webdemoserver.online\/en-ca\/impact-investing-news\/market-trends\/decarbonizing-portfolios\/","title":{"rendered":"Decarbonizing Portfolios"},"content":{"rendered":"

Driving GHG emissions reductions through decarbonization of portfolios<\/span><\/b>\u00a0<\/span><\/p>\n

As society’s concern over the systemic risks associated with climate change grows, a once-niche ESG and impact investing product offering is providing investors with a route to a greener portfolio. To achieve this, both asset managers and corporations alike are trying to calculate carbon footprints, emissions avoided, systemic climate risks and various metrics related to climate change. It is time to double down on decarbonizing portfolios and active stewardship is instrumental.\u00a0<\/span>\u00a0<\/span><\/p>\n

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How are asset managers decarbonizing portfolios?<\/span><\/b>\u00a0<\/span><\/p>\n

A diversified panel of 5 renowned leaders who are making large strides in the transition to green assets were brought together for a panel on this topic at the Sustainable Finance Conference on May 25<\/span>th<\/span>, 2022 and discuss best practices in the industry: Milla Craig, President and CEO of Millani<\/a>, Alexander Bernhardt, Global Head of Sustainable Research at BNP Paribas Asset Management,<\/a> Kenny Tang, Chief Compliance Officer and ESG Leader at Trans-Canada Capital<\/a>, Sophie Cousineau, Vice-President ESG and corporate affairs at WSP<\/a>, and Christian Felx, Head of Responsible Investment at Desjardins Global Asset Management<\/a>\u00a0<\/span>\u00a0<\/span><\/p>\n

Desjardins announced <\/span>concrete measures<\/span><\/a> to fight against climate change: Each business sector has a role to play and can develop strategies to decarbonize portfolios. Some strategies listed by Christian Felx include divestment, becoming signatories of the <\/span>Power Past Coal Alliance<\/span><\/a>, footprint measurement, targets relative to traditional benchmarks, signatories of the <\/span>Net Zero Management Initiative<\/span><\/a>, setting Paris agreement aligned targets, investing in green assets, green bonds, renewable energy for infrastructure investments, encourage certifying buildings, shareholder engagement and transparency, disclosure, reporting are all parts of the decarbonization process.\u00a0<\/span>\u00a0<\/span><\/p>\n

Alexandre Bernhardt of BNP Paribas Asset Management focuses on companies that aim to reach the Sustainable Development Goals (SDG) through thematic investment products which seek to invest in targeted impact themes. Their team uses an SDG model to score companies on their effectiveness to create long term positive impact, a similar approach<\/a> shared by Clear Skies with the goal of decarbonizing portfolios and be aligned with the Paris agreement.\u00a0<\/span>\u00a0<\/span><\/p>\n

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On the other hand, how are companies decarbonizing their process and adjusting to investor expectations?<\/span><\/b>\u00a0<\/span><\/p>\n

Milla Craig of Millani works with both investors and corporations on improving ESG strategies. The mandates that her team does often follow a figure 8 shape; building bridges between investors and investees. Investors need information to report back to asset owners or regulators, and companies need to respond to surveys day in and day out. Disclosure and questionnaires can take away the time needed to lower risks and create value. Standardization can help bridge that gap and the newly established International Sustainability Standards Board (ISSB) North American hub in Montreal may have solutions to provide industry participants with necessary resources.<\/span>\u00a0<\/span><\/p>\n

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Doubling down on decarbonization:<\/span><\/b>\u00a0<\/span><\/p>\n

If one message from this 45-minute discussion from the Sustainable Finance Summit can be extracted, then perhaps it is that productive decarbonization comes down to two main levers:\u00a0<\/span>\u00a0<\/span><\/p>\n