The High Seas Treaty
The open seas (the sea beyond countries’ territorial waters) cover two-thirds of the earth. Oceans serve three key purposes (a) they are the source for half the earth’s oxygen supply; (b) they are natural carbon sinks; (c) source of economic value: food, shipping and tourism. The oceans are overexploited with many species facing extinction, and…
Taskforce on Nature-Related Financial Disclosures
The Taskforce on Nature-Related Financial Disclosures (TNFD) is an international initiative that builds on a model developed by the Taskforce on Climate-Related Financial Disclosures (TCFD). The TNFD focuses on natural and environmental risks, including the loss of biodiversity and the degradation of ecosystems. In comparison, TCFD focuses on climate risk, an interdependent but distinct issue.…
Carbon Insetting
There is a lot of talk about carbon offsets, but little is heard about carbon insets. Carbon inset is a less controversial and equally powerful mechanism for carbon reduction. Carbon insetting is a powerful tool to achieve global net zero targets. According to the International Platform for Insetting, “Insetting is a strategic mechanism used to…
Net Zero: Strategy and Reporting
A recent report by CDP suggests that less than 1% of the 18,600 companies surveyed by CDP have credible climate change plans to net zero. This result is surprising because achieving net zero is critical to the planet’s well-being. Without getting into a methodological debate, here are some thoughts on why this would be so:…
Climate Change and Superbugs
A recent UNEP report, Bracing for Superbugs, examines the relationship between climate change and superbugs. Antimicrobial products kill or slow the spread of microorganisms. They are an essential tool in battling infectious diseases. However, their effectiveness is now at risk because several antibiotic, antiviral, antiparasitic and antifungal treatments no longer work because of antimicrobial resistance…
Market Reaction to Corporate ESG News
A recent paper by George Serafeim and Aaron Yoon explores the market reaction to different ESG news. They analyze the market reaction to ESG news for 3,109 companies. They find that prices react only to financially material ESG news, and the reaction is larger for news that is positive, receives more news coverage, and is…
The Net Zero Emissions Bill 2022
The Net Zero Emissions Bill 2022 was introduced in Rajya Sabha on December 9, 2022. It hasn’t received the attention that it deserves. The Bill creates a structure that will enable India to achieve the net zero target set out at the Glasgow Summit and incorporated in India’s NDCs (Nationally Determined Contributions). To achieve the…
Inflation, Sustainability and Consumer Behaviour
High inflation rates have persisted for quite some time now. As a result, inflation affects both (a) how businesses operate in a high inflation environment and (b) how consumers respond with their purchase decisions. In an inflationary environment, businesses face higher costs due to increased input prices. Staff costs rise too as the company needs…
Stranded Assets and Finance
The shift to net-zero requires moving away from fossil fuels (coal, oil, and gas) and decarbonizing production processes and supply chains. Thus, new equipment or new methods may be required. This results in stranded assets. In this article published in Artha (journal of IIM Calcutta) I explore stranded assets and their implications and focus on…
A Just transition
Faced with the climate crisis, companies are rapidly transitioning to a green economy. However, this transition is often painful, disrupting people’s lives and livelihoods. Businesses have often gone about the transition as if “transition is assured, justice is not.” Trade unions questioned this mindset in the US in the 1990s. The concept of just transition…
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Utkarsh Majmudar 