Weekly Roundup January 6

Invert is focused on providing clients and subscribers up-to-date news on net-zero developments, carbon markets, and how many sectors are evolving to meet climate change goals and ESG requirements.

Special Announcement

Amid ESG backlash, BlackRock Says it Will Not Change its Proxy Voting

BlackRock has announced it has no plans to change its proxy voting system, despite criticism from state treasury funds and officials over its position on environmental, social and governance (ESG) investing. In its global principles report, BlackRock stated that sustainability-related risks and opportunities are key factors to be considered when evaluating a company and its leadership. In two modifications to its stewardship principles, the company emphasized its support for the Task Force on Nature-related Financial Disclosures' recommendations and the need for a global baseline for sustainability-related financial information and climate-related disclosures. 

Invert Insights: Blackrocks ongoing support for increased sustainability-related disclosures and reporting via their proxy voting system signals the continued strength of investor demand for sustainability strategies and the need for increased data to assess these risks.

MSCI Launching Tools to Identify Companies at Risk on Biodiversity, Deforestation 

Investment data and research provider MSCI will launch a range of tools to help investors identify companies at risk of contributing to biodiversity loss and deforestation. The tools, which are set to be available to investors in early 2023, will combine thousands of environmental, social and governance and climate data points with MSCI's proprietary geolocation data. MSCI's Biodiversity-Sensitive Areas Screening Metrics will allow investors to identify companies with physical assets located in areas of high biodiversity, while MSCI's Deforestation Screening Metrics will identify companies contributing to deforestation either directly or through their supply chains.

Invert Insights: Geospatial technologies and analytics can provide accurate, timely, and comprehensive data about the location, condition, and performance of physical assets. These tools can be used to identify and mitigate risks associated with those assets, such as physical damage or degradation, natural disasters, and climate change. By using geospatial technologies and analytics, organizations can better understand and manage the physical and transition risks associated with their assets and make more informed decisions about how to reduce or eliminate those risks.

Bipartisan Bill to Support Farmers and Foresters in the Fight against Climate Change Passes Congress

The Growing Climate Solutions Act, designed to help US farmers and foresters adopt climate-friendly practices, has been passed by Congress. The legislation will create a registry of vendors to help farmers and foresters adopt practices including planting cover crops, reforestation and prescribed grazing, which can reduce greenhouse gas pollution and store more carbon in soil. Landowners will also be able to access voluntary carbon markets, enabling them to contribute to the national effort to reduce carbon emissions and generate new revenue streams.

Invert Insights: Voluntary carbon markets can play an important role in improving the sustainability of current farming and forestry practices by providing a financial incentive to adopt sustainable practices that reduce greenhouse gas emissions. By participating in voluntary carbon markets, farmers and foresters can earn revenue by selling carbon credits that are generated by the reduction in emissions resulting from their sustainable practices to offset the costs of implementing those practices and make them more financially viable.

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