The EU’s sustainable finance plans have four key elements. First is the taxonomy that defines which activities are sustainable. Then there is the Corporate Sustainability Reporting Directive (CSRD) requires companies to report on their sustainability activities. Asset managers then use this information to report on the sustainability of their products. As per the Sustainable FinanceContinue reading “ESG Investing and Disclosure Flow”
Category Archives: Uncategorized
Carbon VaR
Value at Risk (VaR) is an old concept. It is a statistic that quantifies the extent of loss a firm can incur in a specific time frame. It is a measure of risk that a firm faces. Carbon emissions are also a risk that companies face. Hence, the concept of value at risk can beContinue reading “Carbon VaR”
The Seven Myths of ESG
A recent paper by researchers at the Rock Center for Corporate Governance at Stanford debunk several myths around ESG. Given that companies use ESG in decision-making, and regulators are increasing their focus on ESG, the paper is timely. I summarise the seven myths: We Agree on the Purpose of ESG: Despite the near-universal push forContinue reading “The Seven Myths of ESG”
Labour and ESG reporting
While much of the focus on ESG in recent times has centred around the environment, labour has not received the kind of attention it deserves. While Health and Safety has been a common theme in most sustainability/ESG reporting, several other issues deserve a closer look. Much of the corporate reporting on these issues tend toContinue reading “Labour and ESG reporting”
Corporate Boards and Net Zero
The shift to net zero is urgent, and boards have a critical role in guiding companies. Yet many of the board members have little training or background in sustainability. The boards need to reskill – something that we highlight in our book Shift: Decisions for a Net Zero World. The table below presents a worryingContinue reading “Corporate Boards and Net Zero”
Utkarsh Majmudar 