Sofie Van Besien

PUBLICATIONS | New research from Prof. Ugo Rigoni, Dr. Nicola Carta, and Matteo Carta offers timely insights into climate-focused investing for investors. In 2019, the European Union (EU) introduced the Climate Benchmarks Regulation, establishing standardized emission reduction criteria for financial benchmarks. These benchmarks offered investors a harmonized and reliable tool to pursue low-carbon investment strategies. But what are the economic implications for investors embracing these climate-aligned strategies? 💡Key Findings: This study analyzes the risk-adjusted performance of equity Exchange-Traded Funds (ETFs) tracking Climate Transition Benchmarks (CTBs) and Paris-aligned benchmarks (PABs). • CTB ETFs have shown no significant performance difference compared to conventional funds. • PAB ETFs, which align with stricter emission reduction standards, have underperformed their conventional counterparts by about 1.1% annually, revealing potential trade-offs between financial returns and stringent environmental objectives. 💡Why it matters? The research reveals that aligning investment portfolios with carbon neutrality targets may require investors to balance financial returns against environmental impact. Understanding these trade-offs is essential for institutional and individual investors as the EU pushes for a timely transition to a low-carbon economy. Read the complete study here (open access): https://lnkd.in/d2M7tXdH #research #innovation #bridgingideas #VSM #veniceschoolofmanagement #managementstudies

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At #COP29, Asia Guerreschi, a circular economy researcher from Italy, highlights two key pillars for a sustainable transition: know-how and funding. 🌍 She emphasises tailoring strategies to each country's unique challenges and ensuring firms are equipped to transition seamlessly. With #COP29Finance taking centre stage, she stresses the need for inclusive policies that support labour transitions and empower businesses to embrace circular practices. Stay tuned for more on the groundbreaking solutions shaping our climate future! 🌱✨ #CircularEconomy #SustainableEconomy #ClimateAction #COP29Azerbaijan #EverythingForTomorrow

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How to allocate carbon pricing resources 🌫️💸 As we delve into the implications of CBAM and EU ETS, Francesco Lombardi Stocchetti and Lina Strandvåg Nagell of Bellona Europa examine the role of revenue allocation from these policies in supporting the EU's climate objectives. They argue that these funds must be directed into robust, transparent mechanisms that enforce and enhance industrial decarbonization within and beyond EU borders. ⚖️🌏 The briefing elaborates on various allocation strategies, advocating for a dual approach: reinvesting in local low-carbon technologies while also extending support to international #decarbonisation projects. This approach seeks to balance the need for immediate, impactful climate action with long-term #sustainability goals. 🏭🌿 In light of these insights, how can the #EU develop a cohesive policy that ensures #CBAM and #EUETS revenues are used to maximize their impact on sustainable development worldwide? 💬 #EUClimatePolicy #CarbonPricing #NetZero #carbonbordertax

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Explore the latest developments in Italy's sustainable finance landscape with our "Italian Sustainable Finance Snapshot" report: https://ow.ly/4sL350RATf7 Why it matters: With the EU CSRD, 5,000 Italian firms will soon report on ESG practices, revealing the importance of current trends and international alignments in sustainable finance. 🎯 Rigorous third-party climate validations and ambitious Scope 3 emissions targets mark Italian corporates' deepened commitment to ESG strategies. 🏦 Italian banks enhance ESG transparency and prepare for green asset ratio reporting, advancing low-carbon strategies and global sustainability alignments. 🌍 While development banks lead in social impact investments, the banking sector continues to address the gender pay gap challenge. #ESG #SustainableFinance #ItalianFinance #SustainableFinanceItaly #ESGTrends

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Davy, as an investor, recognises that policy mechanisms are essential to achieve a net zero emissions economy by 2050 or sooner, with interim targets in line with credible 1.5°C pathways. That’s why during #COP29 – alongside hundreds of investors – we’re calling on governments to enact five essential policy actions to accelerate the private capital flows needed for a just transition to a climate-resilient, nature-positive economy.  Find out more about the #climatepolicy asks here. https://lnkd.in/g5x6RgCx

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Banca d'Italia governor Fabio Panetta says a carbon reduction incentive scheme could help provide climate finance for emerging economies. Speaking on Monday at the start of a conference at the Banca d’Italia on “ensuring an orderly energy transition”, Panetta pointed out that emerging market and developing economies (EMDEs), excluding China, account for just 15% of global clean energy investment despite representing a third of global GDP and two thirds of the world’s population. “This low amount of investment is partly due to the difficulty in raising capital,” Panetta said in his welcome address to the conference, which was jointly organised by the #G7 and the International Energy Agency (IEA). “In EMDE countries, the cost of financing for transition-related projects can reach levels as high as double those found in advanced economies.” Panetta argued that a global carbon reduction incentive, under which countries with higher per-capita carbon emissions would pay into a fund that gave payouts to nations with lower emissions, could provide “a fair and effective solution” to this funding shortfall. Read more: GreenCB.co/3BbNpVR #ClimateChange #JustTransition #ClimateFinance

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🌍 Exciting news! PwC EU Services, in partnership with WYG Consulting Ltd., is selected by DG for Environment (DG ENV) to assess the integration of financing needs for nature conservation 🌱 across key programmes under the EU’s multiannual financial framework (MFF) 2021-2027, as well as in the recovery and resilience plans (RRPs) under the NextGenerationEU recovery programme. We are also helping evaluate the funding gap 💰 and highlight best practices for mainstreaming Natura 2000 in these programmes. We look forward to contributing to nature conservation efforts across Europe! 🌳 #NatureConservation #EU #Sustainability #NextGenerationEU #PwC

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The Taskforce on Net Zero Policy launched today at #COP29. Canbury was delighted to be a knowledge partner to the Taskforce. Our data tools identified, analysed and interpreted 1736 policies, which the Secretariat and TEG narrowed to: - 784 real economy policies - 352 financial and corporate sector policies ... across G20 economies to assess progress on net zero policy reform. Key findings: - Financial and corporate sector net zero policies have tripled since 2020 across the G20. - All G20 countries now have some form of net zero policy for companies and financial institutions. But ... - The data reveals progress but highlights significant gaps in G20 net zero policymaking. - Integration of climate mitigation with nature, adaptation and just transition remains inadequate. - Just 8 G20 countries have embedded net zero transition plans in policy frameworks. In short ... despite progress to date, urgent national-level policy intervention is needed to align corporate, financial and economic policies with Paris Agreement goals ahead of COP30 and the 2025 NDC deadline. Many congratulations to the Principles for Responsible Investment for their secretariat work, in particular, Gina Hanrahan, Jan Vandermosten, Andrii Bilovusiak, Aina Menneken and Margarita Pirovska, and Emma Lecavalier at the Net Zero Policy and Regulation Hub at University of Oxford. This is an important piece of work, which we were proud to support.

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🌍📈 Explore the Impact of Climate Change on Financial Markets! 📉🌿 This previous webinar remains highly relevant today. Join Stefano Giglio as he delves into his research "Climate Finance": Integrating Climate Risk: Methods for incorporating climate risk into macro-finance models. Asset Pricing: How climate risks are priced across real estate, equities, and more. Portfolio Strategies: Constructing portfolios to hedge against climate risk. Stay informed in the field of climate finance. Watch now!🔗 https://lnkd.in/drQmQ_6a #ClimateFinance #InvestmentStrategies #SustainableInvesting

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Special Forum Editorial Hot Off the Press in Accounting Forum - Accounting for the EU Green Taxonomy: exploring its concept, data and analytics by Lucia Alessi, Theodor Cojoianu, Andreas Hoepner & Giovanna Michelon European Commission University of Edinburgh Business School EU Platform on Sustainable Finance, University College Dublin UCD Michael Smurfit Graduate Business School, Università degli Studi di Padova, University of Bristol Business School ABSTRACT The #EuropeanUnion's Green Taxonomy has been used by corporations to account for and disclose hundreds of billions of Euros in capital expenditures. The aim of the taxonomy is to set a common and clear definition about which economic activities are most needed for the transition to a low-carbon economy, in line with the objectives of the European #Green Deal. It is essential that academic #research explores (a) to what extent the taxonomy is clearly understood, (b) if it impacts financial, environmental and societal outcomes, and (c) how it can be advanced. We review the nascent literature on this new phenomenon, emphasize data challenges such as financial conflicts of interest, and explore new analytics for studying the green taxonomy. Specifically, we (i) classify green #capex, green #opex, green revenue and green asset ratio according to time horizon and direction of financial transaction, (ii) propose green operating profit before interest, tax, depreciation and amortization as difference between green revenue and green opex and (iii) the ratio of green capex to green revenue as measure of a corporation's speed of #climate transition. https://lnkd.in/ghjrXRx8

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#EU #Taxonomy #Reporting: Unpacking the Challenges Key Takeaways: - Firms must actively update reporting to align with evolving EU Taxonomy criteria. - Embedding taxonomy in strategic planning aids sustainability objectives alignment. - Leverage insights from expanded activities and technical screening criteria for compliance. Further Insights 1. EU Taxonomy Evolution: The EU Taxonomy is dynamic, expanding beyond initial climate objectives to include detailed technical screening criteria for broader sustainability goals. 2. Reporting Complexity: Firms face challenges integrating new activities into reports, requiring precise mapping of turnover, capex, and opex to taxonomy criteria. 3. Stakeholder Engagement: A new stakeholder request mechanism invites feedback on taxonomy criteria, offering companies a direct influence on future developments. 4. Planning for Compliance: Companies need to anticipate and adjust to annual changes in eligible activities and criteria to maintain or achieve compliance. 5. Data Quality and Transparency: Ensuring data quality and transparency in reporting aligns with robust sustainability commitments and mitigates risks of non-compliance. Closing Thoughts: As EU Taxonomy evolves, how can firms best integrate these frameworks into their core strategy and operations to not just comply, but lead in sustainability? Listen to this episode: https://lnkd.in/gymvmgbY

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#PODCAST: In this episode, Hill Vaden, Sam Humphreys and Coralie Laurencin discuss #CBAM's recently begun transitional period and how policy makers expect it to support #decarbonization ambition and increase the competitiveness of European industry. 🎙️ Full episode (30:56): https://okt.to/GbP4hH

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We were delighted to welcome Scott Livingstone and ✨Claudia Segre to our latest Wo&Men breakfast event hosted in Milan. The event focused on ESG(G). The (G) representing Geopolitics to acknowledge the ever-present impact of Geopolitics on the ESG landscape. Attendees contributed to the discussion on how geopolitical, environmental and social themes are connected. Current global and regional macro trends were used to guide the discussion. Key topics included: US election: The election of Trump, who has shown little interest on themes like climate change, is going to have several implications. International trade, domestic growth, inflation, interest rates and commodity prices will likely be affected, and may cause other countries to shift their attention to themes like security and defence. In Europe for example, a ‘European security strategy’ has been suggested, and subsequently endorsed by CEOs of Italian and UK defence companies. Peace, Security and Defence: There is still uncertainty over peace, with the Israel-Hamas conflict ongoing, and any solution to the war in Ukraine, requiring huge diplomatic efforts, significant funds, and compromise. Among the countries most affected by recent change, Taiwan is preparing to boost its defence capabilities and stand with democratic partners to maintain regional peace and stability. Vice Premier Cheng Li-chun has formed a task force to strengthen US-Taiwan cooperation in trade, defence, technology, and people-to-people exchanges. In China, on the other hand, the possibility of a trade war grows, with Trump threatening significant tariffs on all Chinese imports. AI and digitalisation: Among other subjects, the dynamics of AI were debated. In particular whether common governance and rules can be agreed globally, noting the steps already taken in Europe with the AI Act. The increase in the number of FinTech’s competing internationally, and digitalisation developments in Africa and Middle East, were also considered as ‘significant trends’ set to impact the 2025 global economy. Climate and Inclusion: Adopting sustainable practices, investing in green technologies, and fostering a culture of environmental responsibility, were agreed as being ‘key’ to helping greenify the economy and manage adaptation risks. It’s expected these will also impact long-term resilience and competitiveness, in the current rapidly changing world. For more on the latest geopolitical risk trends and developments, as well as other useful insights, check-out our insights hub: https://lnkd.in/eP-87Gme

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LISTEN: In the latest Corporate ESG 5 in 5, Pietro Stimamiglio spends 5 minutes reflecting on what the European Commission's approval of the ‘Energy Performance of Buildings’ directive means for Corporates: https://lnkd.in/e7Pjvqpu

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What is the impact of #climatechange on equity valuation❓ Join us at Scientific Beta Days Europe on November 26 in London to discuss our latest insights. 👨‍🏫 Our expert, Riccardo Rebonato, will take the stage to present his latest paper “How Does Climate Risk Affect Global Equity Valuations? A Novel Approach.” The research reveals that over 40% of global #equity value is at risk if decarbonisation efforts do not accelerate, with losses exceeding 50% when climate tipping points are factored in. Prompt and robust action by regulators and companies is needed to keep losses below 10%. During his keynote speech, EDHEC Business School Professor Rebonato will examine the following topics: ✔️ A combined probabilistic approach to equity valuation for transition and physical risk ✔️ The importance of state-dependent discounting ✔️ A Minsky moment or death by a thousand cuts?   More information ℹ https://lnkd.in/dtqzTCVC 🕒 Registrations will close on November 25! Secure your complimentary place today 👉 https://lnkd.in/dUxqJz3t #MakeAnImpact #ClimateFinance #ClimateRisks #AStepForward

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A new OFR Staff Discussion Paper by Daniele Caratelli studies how wealth affects workers’ willingness to change jobs in recessions and the implications for the economy at large. Switching jobs is a common way for workers to achieve wage growth. Despite the possible financial upside, switching jobs can be risky: often, it is first in, first out when it comes to layoffs. Workers must trade-off the higher wage from a new job with the stability from the existing one. Caratelli identifies and discusses what he calls the precautionary job-keeping motive. All else equal, low-wealth workers are not as willing to switch jobs compared to high-wealth workers because they are less able to take on the increased risk of layoff that comes with changing jobs. Low-wealth workers switch jobs less and experience lower wage growth relative to their high-wealth peers. Precautionary job-keeping can help explain earnings growth during recent recessions. The pandemic recession was different in this sense. Because of the large fiscal stimulus, workers’ wealth actually increased during the COVID-19 pandemic, alleviating the precautionary job-keeping motive and incentivizing workers to switch to higher-paying jobs. Author Bio: https://lnkd.in/g-C2uQq2

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What are governments around the world doing on industrial policy? This short talk and Q&A by the IMF's Lorenzo Rotunno and Adam Jakubik will introduce you to a new dataset on industrial policy and recent research on its impacts. 📺 Watch here: https://bit.ly/3JzUIHP

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