The European Union is awash with various regulations, standards and directives. And each one comes with its own confusing abbreviations. Here is a ready reckoner of these terms. CSDD: The EU’s Corporate Sustainability Due Diligence Directive (CSDD) is a legislative framework that obliges companies, including those in financial services, to demonstrate what action they areContinue reading “The EU and its Alphabet Soup”
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The Case for Measuring Avoided Emissions
Japanese conglomerates like Panasonic, Hitachi, Daikin and other Japanese businesses have been at the forefront of a government-backed campaign to adopt a new metric to assess a company’s efforts towards achieving carbon neutrality goals. This metric is avoided emissions, sometimes called scope 4 emissions. It is based on the idea that investors should look beyondContinue reading “The Case for Measuring Avoided Emissions”
Climate Risk and Banks’ Credit Losses
Banks face two kinds of risks – risk from physical events and risk from transition to a net zero economy. A recent report in Bloomberg raises an important question about the time frame in which losses from loans made to high-carbon industries that contribute the most to global warming may become financially material for theContinue reading “Climate Risk and Banks’ Credit Losses”
Blended Finance: Unlocking Commercial Finance forSustainable Development
Here is my piece on Blended Finance, published in Artha, the IIM Calcutta finance journal. With investment needs to move to a green economy exceeding $1 trillion a year by 2030, governments and international agencies will find it challenging to fund this. Thus private and public finance will need to join hands. Blended finance blendsContinue reading “Blended Finance: Unlocking Commercial Finance forSustainable Development”
Financed Emissions
Banks play a dual role. At one end, they finance decarbonisation; at the other, they finance emissions through loans and investments. Thus, financed emissions are the greenhouse gas (GHG) emissions linked to the investment and lending activities of financial institutions like investment managers, banks and insurers. It’s the carbon footprint of a firm’s investments orContinue reading “Financed Emissions”
Utkarsh Majmudar 