Duncan Paterson

Have you ridden the #carbon credibility rollercoaster? Well, if your business is in any way related to #carbonmarkets – my guess is that you’re in the middle of a very long ride! Check out this article where I look at the SBTi’s evolving #NetZero Standard and how I think #timber can be built into a solution in the carbon credibility crisis. #naturebasedsolutions #climatefinance #VCM #forestinvestment #timberlandinvestment #sustainableforestmanagement

8

1 Comment

🌿🇦🇺 Big news for Australia's climate action journey! 🚀 Yesterday marked a historic milestone as the Senate passed groundbreaking legislation mandating climate reporting for our largest companies and financial institutions, starting January 1, 2025. 📊🏢 This is not just a small step - it's a giant leap for financial reporting and auditing in Australia! 🦘💼 Key points: - Affects both listed and unlisted companies 📈📉 - Australian Accounting Standards Board (AASB) to finalize reporting standards 📝 - Australian Auditing and Assurance Board (AUASB) working on assurance standards, expected later this year 🔍 But wait, there's more! 🎉 1️⃣ The NZEA Bill establishes an independent authority to guide our transition to a decarbonized economy. 🌱💪 2️⃣ Australia aims to reduce emissions to 43% of 2005 levels by 2030, and achieve net zero by 2050. 🎯♻️ 3️⃣ The government is investing $189.3 million over four years to resource this initiative. 💰 4️⃣ Support for workers, First Nations communities, and public engagement are key focuses. 👷🏽‍♀️👨🏾‍🏫🤝 This is more than just numbers - it's about shaping a sustainable future for all Australians. Let's embrace this change and lead the way in climate action! 🌍 Reach out to see how Agtuary can help you prepare & connect you with our advisory partners! → https://lnkd.in/eR8RiYm5 #ClimateAction #AustralianBusiness #Sustainability #NetZero #FinancialReporting

18

Adapting to climate change is arguably the most significant issue facing our generation. Below is a link to the first in a series of articles by my partners Stephanie de Groot and Bianca Tree addressing where New Zealand is in our climate adaption journey, the evolving climate adaption policy settings, and the actions required at the local level to establish and implement adaption plans. How we adapt is a complex problem – with many stakeholders, trade-offs, costs, and alternative consequences to consider. And now of course is a question for large NZX listed entities and financial institutions to consider in their public mandatory climate-related disclosures, as to how they may be impacted.

18

1 Comment

Australian Sustainable Finance Institute released the first draft of its technical screening criteria for a national sustainable finance taxonomy today. The draft covers three sectors - energy, built environment and mining, metals and minerals. At first glance, it is most welcome that the taxonomy takes a stance on: - CCS: "electricity generation via abated fossil fuels is currently out of scope as an activity in the transition methodology due to the low technological readiness level of carbon capture and storage."   - Nuclear energy: "Given the legal context, there is no case to include nuclear power generation in the taxonomy at this point in time." - Gas firming: "gas firming is not [currently] in scope at an activity level" I'll be engaging with the market in coming weeks to identify and collate stakeholder feedback regarding the credibility and usability of this taxonomy. If you would like to share your thoughts/concerns and learn from what others are saying, please drop me a DM. This public consultation process will run until 9:00pm Sunday 30 June 2024 (AEST). https://lnkd.in/gtewdX8V Investor Group on Climate Change (IGCC) Responsible Investment Association Australasia (RIAA) Australian Council of Superannuation Investors

56

6 Comments

Great overview of biodiversity markets by Pollination and the members of the working group that provided inputs. The report reflects the increasing financial value of impact contribution claims rather than ownership rights in the form of credits. So what is verified is the contribution to biodiversity. This is a welcome difference to carbon credits. https://lnkd.in/egDTue9A

12

“stewardship, which is responsible management of investments to promote long-term value and sustainability in the interests of the investor’s beneficiaries,” This is not stewardship. This is salesmanship. Stewardship is care, prudence and dilingence under the circumstances then prevailing regarding the present and future consequences of present choices for where and how the money can, should and will be made to flow into enterprise for its use in doing its work, for a time, at a cost, and on terms to form the right businesses for forming the right technologies for forming the right choices for forming the right economy for forming a cohesive society and keeping it ongoing into a dignified future, for some, directly, for us all, consequently. Stewardship is mediating the tensions between quantities of money and quality of life.

Lots of discussion on national emissions targets hitting the headlines again. Investor Group on Climate Change (IGCC) has discussing the implications of backsliding on emissions targets for investors all weekend Australian Broadcasting Corporation (ABC), Sky News, Australian Associated Press (AAP) The Guardian The Sydney Morning Herald The Age The Australian.  Wrap below. A couple of good analysis pieces from Adam Morton and Jane Norman this morning: https://lnkd.in/gRfnAMqJ https://lnkd.in/gr26Mjid A few reflections: * There has been a lot of discussion of the investment and foreign policy implications of back sliding on targets. These are critical. However, the whole point of national emissions targets is to avoid climate damage. Projected climate damages to Oceania’s (mainly Australia's) economic growth are in the range of US$400bn to US$1.7 trillion for over coming decades (usual caveats here). * Ted O'Brien MP is absolutely right to hold the Government to account on progress towards the 2030 emissions target. It is also important the Coalition remains committed to the Paris Agreement. We do need some clarification on this however: 1. Countries "must" have targets and when a country updates a target it “will” be a “progression” of its previous target, i.e. stronger than 43%. I am happy to be corrected on this by people who were involved in drafting the Paris Agreement Andrew Higham Dean Bialek Bill Hare 2. Objective of the Agreement is not Net Zero. It is limiting warming to 1.5C. Whether we achieve this goal with limited overshoot will be determined by action over the next 10 years. Also, no one is arguing achieving the 2030 will be easy. However, if you hit bumps in the road, you fix the potholes you don’t tear up the road. This is easier with full support of the Parliament, business, investors and the community. Finally, I have been involved in the setting of every Australian climate targets since the Berlin Mandate which led to Kyoto in 1995. I admit feeling very sad we are still discussing the pros and cons of aiming high to limit climate damages. Climate grief is very real today, and very grateful for my loving partner and team. For others out there you are not alone. https://lnkd.in/ggZRbn6N https://lnkd.in/gGP3bjws https://lnkd.in/ga6DYgSq https://lnkd.in/gVwwypBD

72

14 Comments

Tensions are a pervasive, but perhaps overlooked feature of green finance. With my colleagues Matthias Täger and Julius Kob, I’ve analysed how tensions, for example, between climate change mitigation efforts and financial objectives, play out in the day-to-day work of finance professionals. Navigating these tensions is an ongoing struggle and can produce adverse effects, such as tensions persisting rather than being resolved, and climate change mitigation efforts being subordinated to financial objectives. Find out more in our latest blogpost 👇 #climatefinance #greenfinance #climatechange #investors #assetowners #assetmanagers #ESG #ClimateAction100+ #netzero

24

My latest Unpacking Climate Risk article is attached, I hope you check it out and consider subscribing for many more from Louie Woodall and I. The piece considers the fate of development related projects in the context of emissions targets. Obviously the idea situation involves global banks continuing to fund pro-development projects in poorer countries and for such projects to be consistent with net zero aspirations. My fear is that development projects that are not pure green will be cast aside and that funding to poor countries will, in aggregate, slow as a result of climate concerns in rich countries. The article considers this issue in some detail. I hope you check it out and have a productive week. #climaterisk #economicdevelopment https://lnkd.in/eUUNDYkP

15

The Australian Institute of Company Directors has issued this great guidance on setting climate targets. Useful for directors and businesses, this essential reading outlines a range of issues important for stakeholders, supply chains, and upcoming mandatory disclosures. Importantly, climate targets need; credible, supporting, verifiable plans; careful communication to avoid greenwashing; data and the alignment of transition plans across value and supply chains. Companies will need to be well prepared, and directors need to be able to demonstrate they have exercised due care and diligence. #AICD #board #governance #netzero #netzeroemissions #climatechange #leadership

19

1 Comment

Last week, we published a report on measuring #impact from investment. The key finding is that current frameworks risk entrenching inequalities through the unintended consequence of applying methods that don't appropriately (or sufficiently) capture impacts that 'matter'. The report, co-authored by George Carew-Jones and myself, was published by the Smith School of Enterprise and the Environment - University of Oxford, based on field research funded by the Climate Compatible Growth #CCG programme. We situated our applied analysis using #Zambia's Constituency Development Fund as one of the case studies. Findings were summarised in a great piece by Emanuela (Emmy) Hawker at ESG Investor ( https://lnkd.in/ehZT3WP3). It's a subscription publication, so if you don't have access, the full report (and a summary) are available here: https://lnkd.in/eaqZeaYa.

41

2 Comments

Erasure and blindspots in stereo what do you get when the financial materiality folks combine effort with the monetization of Nature crowd. Even mainstream finance and economics are doing better than these “sustainability” coalitions with a number of critiques of neoliberal economics and books on inequality doing the rounds. There is no philosophy of change or paradigm shift in this work. It is not even sustainability light - any remaining pretence is now gone. Global North Dominance Watch Make Justice Normal Green Economy Coalition Post Growth Institute

18

23 Comments

Mugged by reality! Nice title and a great article by Chris Uhlmann. Uhlmann has nailed a number of problems with Australia's current approach to the energy transition and mitigating the impacts of climate change. First and foremost - the biggest issue we face is energy security and affordability. Energy is fundamental to our economy and standard of living. One of Australia's natural advantages should be energy abundance translating through to ultra-competitive energy prices. When gas sells for US$2/GJ in the US but US$10/GJ in Australia and our wholesale electricity prices are some of the most expensive in the developed world - we seem to have messed this up. Is it any wonder that industry is struggling to remain competitive and households are struggling to pay their energy bills. To be clear - this is not an argument against renewables. Wind and solar are going to play a key role in the energy mix and energy transition. Only the idealogues like our Minister for Climate Change make this a competition between energy sources - the reality is we need them all if we are going to transition to net zero. The key word here is transition - this takes time. As Uhlmann notes, Chris Bowen seems to be gradually realising the importance of gas in the energy mix. Gas is much cleaner burning than coal, and is capable of providing peaking and back up power when intermittent renewable energy is unavailable. On a global scale, the single biggest reduction in CO2 emissions has come from the US conversion from coal to gas fired power over the past two decades. Cheap gas is also crucial for Australia to maintain a competitive industrial base. The problem is that despite abundant gas resources - we are actually running out of available gas supply. The speed of the decline of the massive Bass Strait gas resource in Victoria appears to have caught most people by surprise. The state is now looking at LNG imports to make up the shortfall, which is so strange when Victoria still has a ban on onshore gas exploration and development. There is a glimmer of hope on the horizon - and that's the Beetaloo Basin in the Northern Territory. Tamboran Resources Corporation recently released flow test results from Shenandoah South well which showed that gas could flow at commercial flow rates. The Northern Territory seems to get it, and is being highly supportive of the project including signing an off-take agreement with Tamboran. Now we just need our Federal government and the Qld, NSW and Vic governments to also see the light! What we also need is a change of approach on nuclear. We've still got 26 years to reach the arbitrary 2050 net-zero target. Plenty of time to build a nuclear power fleet. But that's a topic for another post. #energytransition #naturalgas #climatechange #decarbonisation #energysecurity https://lnkd.in/g6MypXaP

169

54 Comments

Some great insights at the Australian Sustainable Finance Institute (ASFI) last week with a strong focus on #FirstNations - and my article is up on the FS Sustainability website and in our latest newsletter as well. #sustainablefinance #ESG #sustainability #climatechange

20

3 Comments

“low likelihood high impact” scenarios that include climate tipping points that's highlighted by the report isn't an Australian concern only but a global one. #climatechange #globalwarming #tippingpoints #sustainability #planetaryhealth #humanity #climateaction https://lnkd.in/gK2SSa2e

12

After six years of partnering with businesses of all sizes, we’ve realised one thing: people tend to make assumptions. They often believe they know their market inside out, only to find out that their hunches were wrong—resulting in wasted efforts and dollars. We’re challenging this norm at Verra Asia. It’s time to move beyond guesswork and embrace the power of informed decision-making. How? By turning data into your most valuable ally. We’ve seen firsthand how the right insights can transform uncertainty into strategy, and assumptions into confidence. Why work with us? ✅ Together with our research partners, we can help you reach a global audience and find the insights you need. ✅ Our work extends beyond just uncovering data. We decode it and help you strategise your next move. ✅ We turn data into stories. Maximise your investment and transform your insights into powerful content. Embark on this new chapter with us as we continue to deliver top-notch business intelligence solutions. Let’s advance into the future together—equipped with knowledge and powered by insight. Learn more here: https://lnkd.in/gzYm7AR6

14

News from #ClimateWeekNYC! 📢 The Forest Finance Risk Consortium launched the "Deforestation Disclosure Guide for Financial Institutions Towards integrated nature- and climate-related financial disclosure". Learn how to disclose deforestation and land-use change risks, incorporate them into climate- and nature-related financial disclosures, and understand nature protection’s role in net-zero transition plans. To support effective deforestation disclosure, the guide outlines four essential steps:   (1) adopting deforestation-free finance guidance and joining collaborative finance sector initiatives,  (2) disclosing annually through deforestation-specific disclosure,  (3) integrating deforestation into climate- and nature-related financial disclosures and transition plans,  (4) working towards holistic disclosure. Join the increasing number of financial institutions who are taking steps to reduce financed deforestation and to disclose their impacts:  👉Download the report: https://lnkd.in/euASuTEd  👉Register for the November 14th training: WBCSD Events - Deforestation Disclosure Training for Financial Institutions (salesforce-sites.com) #NYCW #financialdisclosure #deforestationfreefinance   Gretel Gambarelli, Fiona Cromarty, James d'Ath, Monique Ewerton, Natasha Ferrari, Benjamin Simonds, Kasha Foster, Bernard de Galembert, Matt Inbusch, Nicholas Jackson, Vemund Olsen, Bethany Ridley-Moran, Tomasz Sawicki, Lara Yacob, CDP, Taskforce on Nature-related Financial Disclosures (TNFD), Lloyds Banking Group, Climate Advisers, Schroders, Global Canopy, World Resources Institute, United Nations Environment Programme Finance Initiative (UNEP FI), Ceres, Inc.

12

📰 Our readers loved this #superannuation story that came out in the FS Sustainability newsletter this morning: 💸 Stark differences in #ESG fund performance in FY24 reflect markedly contrasting portfolio strategies - but might add fuel to the anti-ESG fire, Rainmaker warns. Australian Ethical Investment and Nationwide Super topped the Rainmaker Information ESG league tables, while UniSuper saw mixed results. I spoke with Aman Ramrakha, who told me that the data highlights the fact that not all #sustainable options are as alike as a layperson might assume. Click the link below to find out why 👇 🔗 https://lnkd.in/gucbMQw9 💡🌱 Follow me and FS Sustainability for essential sustainability/ESG-related news, and keep on top of the trends and requirements in a fast-paced business landscape. #sustainability #sustainableinvesting #investment #socialimpact #business #responsibleinvesting #responsibleinvestment #investing #LinkedInTopVoices #financialservices #climatecrisis #climatechange #climate #netzero #news #breakingnews #climatenews #newsupdate 

7

Latest addition to ImpactDB - The Impact Database - a carbon pricing simulator/model. Data sources: NZDPU / Carbon Disclosure Project (GHG emissions, scopes 1-3) International Foundation For Valuing Impacts (IFVI) carbon monetisation proposal (@$236/tonne). Some of the numbers are interesting! #carbonpricing #socialcostofcarbon

3