What does COP26 mean to investors?

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Significant failure, or positive results that could be expected? The debate over the effects of COP26 will continue for some time, and we will be working hard to find out.

We start today with a very sharp analysis of the market after the Glasgow conference. Andrew looks forward to the explosive but most important development in Glasgow: a new step towards sustainable standards around the world. And Tamami looks at the ideas from India, which are portrayed by some as a bad person at the meeting after pushing hard to soften the language of the final agreement on coal.

What did you do about COP26? Are there important things that we and all other publishers have been neglecting? Tell us at moralmoneyreply@ft.com. – Simon Mundi

This is what market experts say about COP26

I returned to London two weeks later in Glasgow, and I reflect on what happened – and what did not happen – at COP26. The same is true of some of the world’s leading business analysts, and it has been helpful to read their thoughts on the conference’s commercial and economic activities in the coming months and years.

The largest analysis came from the equity research team at Jefferies. “COP26 has widened the gaps in the goals,” he wrote, referring to the “dangerous and eye-catching” promises that did not coincide with anything to come.

Developed countries are still breaking their promise to provide $ 100bn of climate change assistance to developing countries, but even this figure “is not enough to support real change”, the Jefferies group warned. However, they argued, the slowdown in the global economy over the next few years will provide long-term opportunities for highly profitable business ventures.

Moody’s experts focused on the potential for credit risk. Strong changes could “bring interest rates to more gas-rich states and countries”, they wrote, estimating that financial institutions in the G20 countries had $ 22tn in relation to high-carbon sectors, or 20 percent of their territory. But the weak progress in COP26 means that the pressures remain “limited and manageable” – a message that can be encouraging to Moral Money readers, and irritate others.

Some have looked closely at what happened in Glasgow to establish clear rules for international trade in carbon credits. S&P Global Platts has welcomed measures to curb double debt repayment, saying this could lead to “the necessary reliability” in the volatile carbon offset market.

A panel of UN Principles for Responsible Investment also advised investors to consider seriously the major announcements made in Glasgow, in particular the government’s promises to curb deforestation and methane emissions. Although many people are skeptical of these promises, investors should be wary of “legal or regulatory changes” from them, said Edward Baker, chief of climate policy at PRI.

To me, however, a very dangerous warning came from Morgan Stanley business expert Jessica Alsford and her team. “Modern targets show that temperatures of 1.5C are not possible,” they emphasized in a post-COP26 note to customers. “So traders may need to pay more attention to the risks of climate change, for example, how the climate will affect agriculture, infrastructure and yields.”

Global warming above 1.5C will damage lives and livelihoods around the world. It is dangerous for investors, too. (Simon Mundi)

Brace for impact management

The International Sustainability Standards Board has been set up to develop established disclosures. © Abhishek Chinnappa / Getty

Amidst the many issues, as well as disputes, spreading in Glasgow this month, some may miss the deal to establish a deal. International Sustainability Standards Board. But investors and administrators would do well to pay attention.

The IFRS Foundation, which oversees international accounting standards, has co-ordinated enough chapters to announce in Glasgow the establishment of a new agency to establish the necessary legislation to ensure consistent transparency in financial matters.

One reason for this is the task of building the Impact Management Project, one of the groups behind the scenes that is highly appreciated by established professionals but invisible to many of us. The project, under the direction of Clara Barby CEO, was launched five years ago by the end of 2021, but is launching a new strategy before announcing its work.

It has developed an impressive array of teams to create an Impact Management Platform, which outlines its mission as to build a “coherent and comprehensive system of principles, norms and guidelines on how to contribute to sustainability”.

If it seems absurd and wishful thinking, the platform starts small, with a online tool to describe the main components of the management system management system management system management system management system management systems management systems management systems management systems management systems management systems management systems management systems management .

With the World Bank’s International Finance Corporation and OECD among its partners, however the platform has great ambition. Communicating how companies reveal their stability may not be enough, it means; we also need to connect how they can improve their stability.

Expect to see more “problem management” grow in our regular discussions from now on. (Andrew Edgecliffe-Johnson)

Sabbath chart

% Of Investor's response chart to

Seventy-nine percent of investors in the world are concerned that companies will not be able to deliver on their promises, according to a new Edelman survey. Investors in the US are among the most concerned; 92 per cent are concerned that companies have failed to deliver on their promises.

But these worries are unlikely to stop the flood of zero promises. Ninety-one percent of retailers still want their trading companies to “establish and negotiate” a zero system in the next 12 months.

Advice from Tamami

Tamami Shimizuishi

The Tamami Shimizuishi of the Nikkei helps you become more knowledgeable about stories you may not have known in the eastern hemisphere.

As the international climate change conference in Glasgow came to an end, western journalists became aware of it India and China as the founders of the weakened COP26 alliance.

On the other hand, the Indian media, criticized the developed world of the shortcomings of the climate meeting.

“Prime Minister [Narendra] Modi’s promise of 2070 net zero was a remarkable development, even for those in India, “said Namita Vikas, founder of ESG Advisory AuctusESG from Mumbai.

Despite the misinterpretation of India’s role in changing the convention agreement to bring coal-fired power down “instead of” out “, powerful Indian experts believe the country is heading in the right direction.

Even among ESG representatives, India’s “delayed” target is known as a real way to link the country’s strong security with its green efforts – rather than taking action on climate change.

“I’m looking forward to [developing countries such as India] following a period similar to that in which developed countries simply do not exist, “said Vibhuti Garg, an economist at the Institute for Energy Economics and Financial Analysis.

Meanwhile, India COP26 envoys who have arrived home from Glasgow are now facing closure in the country’s capital due to severe air pollution. Schools and construction sites are closed and people are advised to work from home.

Vikas of auctusESG also said that in India there was little understanding of climate change, even in commercial groups. But a recent air pollution crisis in Delhi could lead to climate change, more than COP26.

Smart Reads

  • Bonded bonds have stabilized at $ 80bn in release this year, but they do not have the firm targets put on the green bond, Joe Rennison of FT. he writes. Despite the “big promise” in stable relationships, it has served as a way for companies to fulfill their promises to ESG without guarantee.

  • In a corporate world where most people are under 10 years of age, can the pay cut be in line with the environmental promises made in 2030 and beyond? Not a single attempt by US investors to link high pay to ESG methods last year was a success, writes Andrew Hill of FT in this regard. Big Read.

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