‘Transforming to a Net-Zero World’
Online Program by Global ESG
1. Understanding the basics (Agency, Government, NGOs)
UN SDGs, UN Global Impact
2015 the Paris Climate Agreement, Europe’s Green Deal
ESG 1.0 to ESG 2.0
Net-zero and climate management, decarbonization path
Carbon emission trading system (ETS) in EU, the US
2. Regulators’ Perspectives (Agency, Government, NGOs)
3. Investors’ Perspectives (Finance, Investment sector)
If a tabacco company has a high ESG score (providing jobs, take care of their employees), tradeoff between pluses and minuses that give a decent ESG score and profile, however, still excluded for obvious reasons by many big investors.
ESG integration does not lead to positive real-world impact. ESG consideration does not automatically lead to a portfolio of companies that are associated with a positive real-world impact.
Sustainable Investing; requires many things over long time to build up expertise – IT, research, data challenges, implementation of investment processes
Decarbonizing investment is challenging; investors needs to look at forward-looking metrics. The carbon footprint data is backward-looking, with an average time lapse of around 2 years. This data won’t tell the transition readiness of a company. Current form of carbon footprint data does not tell whether the company is going to decarbonize in the future.
Data inconsistency is another issue. Multiple, overlapping sources have contradictory information. ESG scores are not measured, they are modelled by different agencies, meaning they are estimated and have room for error.
Investors in EU are developing their own sectoral decarbonization pathway, looking at how a sector will decarbonize in the next decades. Key sectors to watch: Oil & gas, energy, transport, cement, buildings, iron and steel sectors.
4. ESG Management (Corporate)
5. ESG Business Strategy (Corporate)
6. Potential Greenwashing (Academic)