Angela W.

I really enjoyed this conversation with Tom Gosling about where, how and when sustainable investment can be effective. Tune in to hear more!

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Ara Partners was delighted to join the coalition of investors advancing the gold standard in measuring #decarbonization. The latest guidance on estimating #GHGemissions reduction impact is the result of consensus-driven collaboration - 22 months of work, involving 31 Content Working Group Members, 36 focus group participants, and external reviewers. Congratulations to the Project Frame core team and Prime Coalition on the release! Looking forward to the next year of collaboration at the Methodology Working Group with 2150, AENU, Allianz Global Investors, APG, Azolla Ventures, Boston Consulting Group (BCG), Bridges, Carbon 13, Carbon Equity, Ceres, Inc., Clean Energy Ventures, Climate Dividends, Climate Investments, Driftwood Climate, Energy Impact Partners, Emerald Technology Ventures, Energy Environment Investments, EQT Group, Future Energy Ventures, Galvanize Climate Solutions, Generate Capital, Generation Investment Management, Helios LLP, JTNL Advisory, Just Climate, Lightrock, MoreScope, PGGM, Planet A, Prime Coalition, Siemens-Energy, Power Sustainable, The Roda Group, TowerBrook Capital Partners L.P., Trill Impact, Venture Climate Alliance, Vidia Equity, WBCSD – World Business Council for Sustainable Development, World Fund, and Zero Carbon Capital.

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2024 is shaping up to be a momentous year for biodiversity finance. Sovereign, supranational and corporate borrowers are issuing more bonds that embed biodiversity protection and restoration goals than ever before. Such bonds now account for almost a third of total ESG labelled debt issued so far this year, up from just 3 per cent in 2015. Our experts explain the reason behind the surge and offer their outlook in this article: https://lnkd.in/eQ_4-N4b

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(Resharing this interesting global Carbon Emissions historical data animation.) Nestled between two of the world’s largest CO2 producing countries, Nepal faces unique climate risks and the country's vulnerability necessitates immediate action. Though the broader impact is from global phenomenon; coupled are regional environmental challenges as air pollution and changes in monsoon patterns that can exacerbate climate risks like flooding, landslides, and droughts. Additionally, the Himalayan region, shared with China, is particularly sensitive to climate change with rising temperatures affecting glacial melt and water availability. Thus, it’s crucial for Nepal to consider all three - local, regional and global factors. As prioritized solutions: a) Adaptive strategies needs to be 'urgent country level agenda' with serious commitments to significantly reduce our exposure to climate perils. b) Responsible stakeholders unite in a robust push to garner global support for mitigation efforts through 'Climate Funds, Loss and Damage Funds' and other avenues. (This video looks informative too: https://lnkd.in/ds-ZaiDR)

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“There is too much talk about the 'how much' and not enough about the 'how of' financing." Our expert Felix Creutzig says there must be "more focus on the design of climate financing instruments in times of tight budgets". "A starting point could be an agreement on the CO2 pricing of international aviation and shipping, the revenue from which could form part of the financing. Another possibility is to link the financing to effective climate policy implementation in recipient countries, such as subsidies that will end the use of oil and gas.”

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Biodiversity and social empowerment present significant investment opportunities. While many investors are currently focused on climate change mitigation, they should also prioritize biodiversity restoration to repair what has been lost to enhance the planet’s resilience. This focus on Regeneration will become a key investment theme in the future, believes senior investment manager Gabriel Micheli. Additionally, investors should focus on fostering a resilient society to ensure the long-term sustainability of climate and biodiversity efforts. Gabriel recently highlighted these opportunities to an audience of asset owners at the Fiduciary Investors Symposium in Oxford. Read highlights of this talk here: https://lnkd.in/gGGWNNJQ

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Join us for the Mercer Alternative Investments Conference on November 21 in Zurich. This exclusive event brings together CIOs, CEOs and portfolio managers from the world's leading asset owners and banks. The panels will focus on actionable macroeconomic insights and offer interactive roundtables on building institutional private market programs across four different asset classes. Register now to secure your place: https://lnkd.in/e47ZpnZf [For professional investors only] #investing #AlternativeInvestment #PrivateMarkets

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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

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Register for this IPE webcast on Impact Investing. Fiona Manning, Fund Manager, will turn the spotlight to emerging markets, discussing insights on how to invest for both profits & progress. Fiona will touch on development finance, global trade policy and what this all means for a Just Transition. For Investment Professionals only. Capital at risk. #emergingmarkets #justtransition #impactinvesting

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Passive daytime radiative cooling (PDRC) materials could be a game changer for the most vulnerable in the developing world. Whilst this article suggests that voluntary carbon markets could help finance their development, experience tells us that VCMs struggle with all pathways where MRV (Measuring Reporting Verification) draws on assumptions/counterfactuals. It’s more likely that philanthropic funding of research and installations would succeed - in a pure “contribution model”.

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Interesting read

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🌲New policy changes set to boost the voluntary carbon offset market which includes credits from forestry investments   In a change of policy the Science Based Targets initiative (SBTi) has stated that it will now allow the use of #carbon offsets to cut Scope 3 emissions. Currently around 4,000 businesses have set emissions reductions targets using SBTi.   Gresham House has been investing in #forestry for over 40 years. Forestry as an asset class continues to deliver strong, stable, and inflation-linked returns. These have been proven through our forestry portfolio’s strong financial track record. However, more recently, the development of voluntary and compliance carbon markets has added the possibility of forestry investment deriving returns from the generation and sale of #carboncredits, as an addition to or replacement of traditional forestry returns.   Key points from SBTi’s statement include:   - SBTi recognises that, when properly supported by policies, standards and procedures based on scientific evidence, the use of environmental attribute certificates for abatement purposes on Scope 3 emissions could function as an additional tool to tackle climate change. - This will entail the definition by SBTi of specific guardrails and thresholds as well as the rules to apply for these certificates and therefore be considered valid for Scope 3 emissions abatement purposes respecting the principles of mitigation hierarchy. - SBTi will not embark in validating carbon credits quality. Other entities are better positioned to deal with this activity. SBTi will enable all validating entities to have clear access and complete understanding of the demand side guardrails and rules established by SBTi for this purpose.

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The attached note reviews the key developments of 2024 and what it meant for investment returns and has a look at the outlook for 2025. The key points are as follows: The main themes for 2024 were: better than feared growth; global divergence; more disinflation; falling interest rates but with Australia lagging; and more geopolitical threats but not as bad as feared. As in 2023, returns were strong. 2025 is likely to see positive returns, but after the surprising calm of 2024, it’s likely to be far more volatile (expect a 15% or so correction along the way) and more constrained. Expect the RBA cash rate to fall to 3.6%, the ASX 200 to rise to 8800 and balanced super funds to return around 6%. Australian home prices will likely see further softness ahead of rate cuts providing a boost in the second half of 2025. Key things to keep an eye on are: interest rates; recession risk; a potential trade war; and the Australian consumer.

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#PlasticPollution exacerbates the triple planetary crisis of climate change, biodiversity loss and pollution, with plastic projected to double and account for 15% of greenhouse gas emissions by 2050 under business-as-usual. ISGAM AG is proud to be one of the 160 financial institutions that have signed the Finance Statement on Plastic Pollution, calling on governments for an ambitious international treaty to end plastic pollution ahead of the fourth round of international negotiations (#INC4) taking place next week in Canada. Read more: https://lnkd.in/dQYSriX2

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The Council of the European Union formally adopted the controversial regulation on nature restoration on 17th June. There are already announcements of funds being set up to take advantages of the opportunities this will create, but what does this mean for the asset management industry more broadly ?   The Regulation, which is part of the broader European Green Deal, sets specific, legally binding targets and obligations for nature restoration in each of the listed ecosystems – including forests, grasslands, lakes, rivers, marine and even urban areas. For habitats deemed in poor condition, as defined in the regulation, member states will be obliged to take measures to restore at least 30% by 2030, at least 60% by 2040 and at least 90% by 2050. Overall, the law aims to put measures in place to restore at least 20% of the EU’s land and sea areas by 2030, and all ecosystems in need of restoration by 2050. Some thoughts on the implications for funds: -Article 8 and 9 funds in particular may need to re-assess their investment policies (such funds should already be re-evaluating their names in light of the recently released related final guidelines from ESMA – see our related legal update) -General increase in regulatory and compliance costs, but particularly for funds with a related focus -Added market pressure on impacted industries including those in food production, building etc. -Investment opportunities in related businesses and around revitalised areas. Mail me to discuss or for more information on this legislation. I am looking forward to attending the AIMA - The Alternative Investment Management Association conference on putting ESG into practice in London next month for related insights and discussions. #financialservices #esg #sustainability #sustainable #sustainability reporting #aima # irishfunds #article9 #greendeal #naturerestoration #greenteam

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Impact investors often express concern about “impact-washing” and “cherry-picking” in impact reports. To help address this, over the past 18 months @ Impact Frontiers, with support from The Rockefeller Foundation, has facilitated a consensus-building initiative for investors in private markets, focusing on establishing shared expectations for impact performance reporting. The result of this initiative has just been published — Version 1 of the Impact Performance Reporting Norms. Generation Investment Management and Just Climate contributed feedback during early stages.   As a voluntary “social contract,” the Reporting Norms are designed to guide the creation of impact performance reports shared privately by fund managers with their capital providers, as well as the creation of public impact reports.   More information is available at https://lnkd.in/e7Ypm8Zu.   From 2024 to 2026, Impact Frontiers will facilitate a pilot phase with interested asset managers, asset owners and allocators, and assurance, consulting, and verification providers. They will host a series of webinars and in-person workshops at conferences to introduce the next phase. If you would like to get involved, please email: [email protected]   #impactinvesting #impactreport #impactmanagement 

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The discussion hosted at Bloomberg by Duke University during #ClimateWeekNYC focused on the evolution and future of debt-for-nature-swaps (DNS) at the sovereign level, highlighting their historical context, challenges, and recent resurgence. Initiated by Tom Lovejoy's 1980 New York Times op-ed, DNS has faced issues like limited impact, complex finance, and sovereignty concerns. However, with the current global debt crisis exacerbated by COVID-19, there's renewed interest in DNS. Key speakers included Carlos Manuel Rodriguez, Kevin Bender, Dana Barsky, and Anmol Vanamali. They were wonderfully moderated by Elizabeth Losos, who discussed the role of credit enhancement, private sector engagement, and the importance of realistic #conservation milestones. The conversation emphasised the need for collaboration, scaling, and leveraging DNS to address broader debt and sustainability goals. The use of DNS is critical to many nations of the world, as it requires investment in very "hard-to-fund" conservation projects crucial to #biodiversity protection and #ocean conservation. Inspiring work, and thank you for a very educational and engaging session. Tokenovate enables ISDA based digital swaps and forwards standards for the #VCM market. World Bank WWF Conservation International The Integrity Council for the Voluntary Carbon Market (ICVCM) VCMI #tokenization #VCC #transparency #integrity

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Many thanks to the IAPF for the opportunity to share some recent case-studies at their Autumn Conference from within the DC Pensions market across Sustainability, Net Zero, Diversified Private Credit and Diversified Private Markets. Sophisticated UN SDG portfolio construction methodologies enable the creation of portfolios that contain explicit thematics (that would otherwise be potentially volatile on a singular basis) that go beyond traditional passive exclusionary approaches. Main message with respect to illiquids was that good design entails understanding the themes and exposures that are sought, being clear about what your definition of each asset class is, efficient portfolio construction, understanding your fee budget and ongoing liquidity management, particularly relevant in the context of DC investors who will otherwise be locked into inefficient long-term private market structures. #ELTIF #LTAF #DiversifiedPrivateCredit #DiversifiedPrivateMarkets #NetZero #ESG Jerry Moriarty

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