Bhavik Parekh, CFA

What role does engagement play in Paris-aligned investing strategies? For UK investment professionals only. In this video, John William Olsen, Fund Manager at M&G Investments, highlights the crucial role that active investee company engagements should play in investment strategies aiming to align with the goals of the Paris Agreement on climate change. Watch this video on our Impact hub and discover how to make an impact with John William Olsen: https://lnkd.in/eTdqgGVZ #SustainableInvesting #MarketingCommunication

118

Our April #investmentmanagement update is now available. Highlights this month include: - the FCA outlining its priorities for asset managers and alternatives firms; - HMT proposing a trading platform for private capital; and - an in progress review on climate transition finance. Access the update: https://ow.ly/Tkpj50Rqu8m

6

🌏 Discover our Sustainable Investment service 🌏 Our team of experts help clients quantify the physical and transitional risks of climate change through bespoke climate scenarios analysis, using the latest data and policy insights and our innovative global macroeconomic model E3ME. Learn more about our service here ➡ https://bit.ly/3Fcx7Z7 János Hidi Dora Fazekas #sustainableinvestment #climatescenariosanalysis #climatechange #transitionalrisks

6

How will gilts react to a change of government in the UK? The Labour Party’s landslide in last week’s general election might well usher in an era of stability, or at least, quell the markets for a while. So what will it do for bond markets? Our Co-Chief Investment Officer Thomas Becket spoke to Emma Wallis at Trustnet about how we are cautious on UK government bonds, but more optimistic on UK corporate bonds. Read the full article here: https://lnkd.in/dKPP8RMn Investment involves risk, and you may not get back what you invest. It’s not suitable for everyone. #gilts #generalelection #government #bonds

18

Following the Financial Conduct Authority's proposal to allow fund managers in the UK to include payments for investment research in the dealing commissions they pay (referred to as 'rebundling'), we discussed whether ESG ratings could be classified as investment research. We conducted a poll on the question "do you think asset managers will start passing on the cost of ESG ratings to their clients?" and of the 60 respondents, including professionals from buyside, sellside and consultancy firms: 72% answered 'yes' ✅ 13% were still 'unsure' ❔ 7% think ESG ratings cannot be classified as research ❌ only 8% think fund managers will continue to pay for ESG inputs themselves 💭 #esg #esginvesting #esgratings #fca

21

Last chance to register for this free webinar on ESG and biodiversity. Do you want to learn more and get an update on risks and mitigation measures? Join us and register now! #RSK #RSKFamily #ESG #Biodiversity #financialinstitutions #Environmentalsocialgovernance #mitigation.

3

Handling ESG data can be tricky 👀 To help navigate this challenge, CFA UK has created a suite of case studies arranged by job role to help investment professionals navigate difficult situations in sustainable investment 👏 Our first release targets buy-side analysts and offers practical insights to tackle ethical and operational challenges in sustainable investments 📈🌿 🔍 Explore case studies 👉 https://ow.ly/vnKe50RSvez Special thanks to our contributors: Jose C Valer, CFA, Emily Barnard, CFA, Jacopo Gadani, CFA, Dmitri Govorov, CFA, David Manuel, ASIP, Stephen Metcalf, CFA, Natalie Gregoire-Skeete, CFA, Yuhan Zhang, CFA, Andy Burton, CFA, Amit Bisaria, CFA, David McClean, CFA, Suzanne Hsu, CFA. #SustainableInvesting #BuySideAnalysts #ESG #EthicalInvesting #CFAUK

13

🌟 #InvestmentTrusts offer access to experienced portfolio managers, and our #FundInsight reports break down their strategy and performance 🧐 ➡️Our latest report covers Impax Environmental Markets plc #IEM. Free to read here: https://lnkd.in/d8ha2HJR Capital at Risk. Winterflood Securities is regulated by the Financial Conduct Authority. #InvestmentStrategies #FundResearch #PortfolioManagement

40

Now available on demand: Introduction to TCFD 📈 Whilst TCFD is mandatory in the UK for those falling into certain categories, TCFD reporting can create competitive advantages such as: • Meeting requirements • Stakeholder demand • Increasing investors' confidence • Understanding climate-related risks and opportunities Watch now to get started: https://lnkd.in/eNvr_ksy #NetZero #SustainableEconomy #ClimateChange #TCFD #ClimateRisk

9

The UK Centre for Greening Finance & Investment (CGFI) published a discussion paper, proposing a unified framework for Climate Scenario Taxonomy to enhance climate scenario analysis in the financial sectors. • The paper highlights that current climate scenarios used are often inadequate, potentially leading to underestimated risks and misguided strategic decisions due to oversimplification and critical data omissions. • The paper aims to address shortcomings in climate scenario analysis, urging to incorporate more nuanced and realistic models, enabling financial stakeholders to better assess and mitigate climate-related risks. Full Article 👉 https://bit.ly/3Adf88e Discussion Paper 👉 https://bit.ly/4f5WTjV #ClimateRisk #ClimateScenario #Finance #UK

14

Integrum ESG work closely with our clients, providing their teams with transparent, auditable data while applying recognised ESG and Impact frameworks. Get in touch today to learn how we can work with your fund » https://lnkd.in/eJHJRrDy #esg #esginvesting #impact #sustainability #transparentdata

18

📢 🌿 𝗨𝗽𝗰𝗼𝗺𝗶𝗻𝗴 𝘄𝗲𝗯𝗶𝗻𝗮𝗿: 𝗦𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗹𝗲 𝗗𝗲𝗯𝘁 𝗥𝗼𝘂𝗻𝗱𝘂𝗽 - 𝗤𝟯 𝟮𝟬𝟮𝟰 Join us next week on 29th October for Environmental Finance Data's Sustainable Debt Roundup: Q3 2024. Our analysts Ashton Rowntree and Guy Richardson will be presenting a summary of the labelled bond market for the third quarter of 2024 offering insights into market trends and looking ahead to COP 29 – discussing sovereign and Central Asian issuance trends.   Tune in for insights on the rapidly growing green bond market and a summary of the market in quarter three of 2024. 📆 𝗗𝗮𝘁𝗲: Tuesday, 29 October 2024 ⏰ 𝗧𝗶𝗺𝗲: 15:00 GMT | 16:00 CET | 10:00 ET ➡ 𝗥𝗲𝗴𝗶𝘀𝘁𝗲𝗿 𝗻𝗼𝘄: https://lnkd.in/eDmnvRKU 𝗧𝗵𝗲 𝘄𝗲𝗯𝗶𝗻𝗮𝗿 𝘄𝗶𝗹𝗹 𝗽𝗿𝗼𝘃𝗶𝗱𝗲: 🔸 A comprehensive roundup of Q3 GSSS bond issuance by volume, bond label, issuer type, geography, and sector 🔸 Analysis of the Q3 GSSS bond market development on a year-on-year and quarter-on-quarter 🔸 Looking forward to COP 29 – Sovereign and Central Asia issuance trends   🔸 Deep dive and Q&A with our experts on the state of the market #environmentalfinance #SLL #SustainabilityLinkedLoans #SustainabilityLinkedBonds #Bonds #SustainableFinance #ImpactReporting #SustainableBonds #Transparency #Accountability #EnvironmentalFinance #Sustainability #ImpactReport #Impact #GreenBond #GreenBonds

2

Following on from Environmental Finance Sustainable Debt EMEA Conference last month, an important point highlighted: Transition creates Investment Opportunity which leads to Returns. https://lnkd.in/e6MiyFCY

11

Investors who want to see their money invested in an environmentally friendly or ethical way have had to navigate a bewildering array of jargon. The FCA has introduced the new Sustainability Disclosure Regime which includes new anti-greenwashing rules. Read more here: https://lnkd.in/eA7rezTC #investing #antigreenwashing #financialadvice

2

On 17 April 2024 the Bank of England published a paper 'Measuring climate-related financial risks using scenario analysis' (by Lewis Holden, Jordan King, Harriet Richards, Caspar Siegert and Lukasz Krebel). The paper highlights that commonly used “out of the box” macro climate scenarios do not typically provide the granularity or data required to perform asset-level financial risk analysis. Therefore, users of macro climate scenarios must decide how to ‘extend’ these scenarios. This may involve estimating impacts to a higher granularity, deriving related variables and addressing timing misalignments or intra-sector variabilities. Firms should then be able to use their existing toolkit of models to measure financial risks under the ‘extended’ scenarios. The paper explains how the Bank is extending macro-climate scenarios to undertake granular asset-level analysis with respect to sovereign bonds, corporate bonds and residential mortgages, with the learnings expected to be relevant for other central banks, private sector financial institutions and the broader financial system. Whilst the paper references some of the recent critiques of climate-related scenario analysis (for example highlighting that the impact of tipping points are not reflected in scenarios, and that estimating damages from temperature rises is an area of ongoing research), it doesn’t propose ways in which scenario users might update their approach in light of these critiques. Nor does it articulate why the outcomes of the Network for Greening the Financial System (“NGFS”) scenarios can still be considered prudent given these concerns. We would welcome the Bank’s further discussion of these points and illustrations of its thinking on how they may be best incorporated into climate scenario analysis work. This would greatly support efforts to engage and better understand the potential tipping points, stress and tail scenarios illustrated in the more recent Institute and Faculty of Actuaries 2024 paper. To discuss the paper from the Bank, or climate scenario analysis please get in touch with your usual Milliman contact. Summary by Milliman Consultants Claire Booth and Nick Spencer. #climate #climaterisk #financialrisk #riskmanagement #complexrisks #insurance #financialservices #milliman #millimanuk

41

Featured content: Schroders' article on the bottlenecks pension funds face in integrating sustainability into strategic asset allocation was chosen for our 'Top Picks' newsletter. It was selected from items uploaded to the Pensions for Purpose platform in June as one of six pieces to share with members. For UK investment professionals only. #Sustainability #PensionFunds #PensionsforPurpose https://ow.ly/MhQY50SxYB2

5