Climate

In early April, RIAA member and fintech startup Bloom launched Australia’s first climate focused impact investing app, targeting retail investors. RIAA spoke with Bloom’s founder Camille Socquet-Clerc about Bloom.

KPMG Australia and Responsible Investment Association Australasia (RIAA) are today launching Human rights and climate change: a guide for institutional investors, highlighting the devastating human rights impacts of climate change and the importance of institutional investors considering these impacts when addressing climate change risk in their portfolios. KPMG/RIAA research indicates that institutional investors are still prioritising environmental impacts over harm to people when addressing climate change risk in their portfolios. Despite increasing attention being paid to ESG, environmental and social risk assessments are often siloed, meaning that climate-related human rights impacts are inadequately addressed. The guide points out that this gap is a risk to institutional investor trustees that must be addressed as an urgent matter of prudent risk management. Richard Boele, Chief Purpose Officer, KPMG Australia, said: “COP26 reinforced that we are at a critical moment. Technological and regulatory shifts are urgently required to achieve decarbonisation and the transition towards a sustainable global economy. For the transition to be made in a way that minimises harm to people, human rights must be at the centre of the response”.

If there is one thing a UN Climate Change Conference always delivers, it is bucketloads of pledges. But if we sift through the various announcements which came out of COP26 in Glasgow, has the needle on the dial shifted on climate action?

Ministry for the Environment (MfE) on Te hau mārohi ki anamata - Transitioning to a low-emissions and climate-resilient future, aka Emissions Reduction Plan (ERP).

Draft Standard from The External Reporting Board (XRB) to frame how New Zealand investors and large publicly listed companies will disclose their climate change risks, under new laws set to take effect in 2022. First consultation on Governance and Risk Management.

The Australian Government’s announcement that the country will target net zero emissions by 2050 is welcomed, however its 2030 target remains insufficient for positioning Australia competitively into the future and achieving a sustainable and productive economy, the Responsible Investment Association Australasia (RIAA) has said. The Government has announced that Australia will keep its commitment to reducing emissions 26-28% by 2030 (compared to 2005 levels). “The announcement to target net zero emissions by 2050 aligns Australia with our key trading partners and is welcomed. However Australia’s near-term target of achieving emissions reductions of 26-28% by 2030 is not aligned with the Paris Agreement’s interim targets of 35-55% and is insufficient for readying the Australian economy for the transition needed,” said Nicolette Boele, RIAA’s Executive, Policy and Standards. “Projections do not offer business and investor sufficient policy certainty. Australia’s projections of achieving 30-35% reductions by 2030 should be government policy, providing investors with more reliable parameters for better risk pricing and valuation.”

Who verifies the claims being made in products and how are these assessed? RIAA’s own Senior Responsible Investment Analyst, Ryan Cook explains the Responsible Investment Certification Program and how our team assesses product provider claims around climate change and renewable energy opportunities, so that you have confidence that the fund is aligned to your clients’ values.

What options do you have available to you now? Hear from five product providers (Australian Ethical, Nanuk Asset Management, Federation Asset Management, Northern Trust Asset Management & BetaShares) who have achieved certification under RIAA’s Responsible Investment Certification Program.

Featuring climate expert Professor David Karoly of the CSIRO Climate Science Centre to understand the physical risks associated with climate change both in Australia and globally, including key findings from the recent IPCC 6th Assessment report.

Draft Prudential Practice Guide CPG 229 Climate Change Financial Risks (CPG 229) by the Australian Prudential Regulation Authority (APRA), designed to assist APRA-regulated entities in managing climate-related risks and opportunities as part of their existing risk management and governance frameworks.