Lauren Compere

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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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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I have yet to meet energy transition, net zero, and climate change people who understand math and science. 1. The works need 700 exajoules of non-carbon energy by 2050. Solar and wind cannot scale that high, nor would that much land be available. It will require all the nuclear that can be built, along with hydro. No one of your group seems to understand that number, how large a number of energy that is. Each exajoules represents either 174 million barrels of oil, or 34.12 million tons of coal. 2. I see no plan that provides non carbon energy to industrial, energy intensive processes, like making iron, steel, cement, and fertilizer, without which 4 billion people would not have enough food. All those processes are done with fossil fuels. Other than SMRs, I see no answer to provide energy for these industrial processes. 3. I don’t think you folks have an answer on how to convert 4 TW of coal plants, unless you plan on nuclear power. Nothing else has the scale, that does not need backup power. Green hydrogen is too expensive, by 5x. 4. Also, what will be the source of energy for 120,000 large ships, critical to international trade, that use diesel or heavy fuel oil? And what about the energy for jet airliners, 25,000 that need a new source of energy. 5. And what about 50 million diesel farm tractors that provide food? What about 100 million irrigation pumps? These are run by diesel. And what about large combines, harvesters. 6. Fossil fuels will still be needed for asphalt, forblubricants,and backup power to solar and wind. And you will need 150 million tons or copper, the equivalent of 7 years of mining. 7. I see no solutions to these questions, as if a positive attitude is enough. Sorry, it is not. I don’t think clean energy, net zero, nor climate activists, have any real solutions to these big problems.

What is the carbon premium, and how does it affect companies? 🌍 I had the pleasure of interviewing Professor Marcin Kacperczyk of Imperial College London on "Theory Meet Practice," where we discussed his research into climate transition risk and its costs for businesses. 🎙️ Watch the full episode here: https://lnkd.in/ed9jygdW We discussed - - Why corporate climate commitments have had little impact on reducing global emissions? - The effects of technological progress and the value of the short term - How the emissions of every industry matter, and what investors should prioritize Plus, Professor Kacperczyk shared his desert island academic paper!

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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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If you manage a sovereign debt portfolio comprising a representative set of more (and less!) democratic emerging market governments, the issue of political freedoms will have almost certainly come up in conversations with your investors or stakeholders as a theme in its own right, beyond overall sustainability. And you might have gone in circles on how to address it, both because of the nature of your investment universe and because traditional sovereign sustainability frameworks have not incorporated this aspect of governance well. So courtesy of Emma Whiteacre we've shared some take-aways in this piece, building on our Ratings and underlying index data. AND that's not all - you can also download a complimentary guide to using our Sovereign Ratings. If you've ever wondered what alternatives there are to old-school aggregations of data that are always several years out of date; what to do about ingrained income bias; or what cosine similarity is and how you can use it in your day-to-day, look no further :). https://lnkd.in/eRYtnRYE

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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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An excellent discussion on ESG in emerging markets in the Financial Times Moral Money newsletter yesterday from Simon Mundy, highlighting work from the World Benchmarking Alliance led by dear pal Andrea Webster. Of all the critiques of ESG out there (and there are many, obviously! 😆) this is by far the most serious and substantive. Let’s review: ESG, and particularly EU supply chain diligence requirements, drive risk aversion, causing investors to shy away from exposure to markets with weak labor rights and decarbonization challenges. A purity contest, where we aim for a “clean” portfolio, is counter productive in all sorts of ways. ESG reporting favors big, high capacity multinationals with tons of resources. It also operates as if we exist in a political vacuum, cherry picking profitable initiatives from a range of options with no regard to the policy context. We have no idea what good supply chain oversight looks like! And no idea what the expectation should be on tricky topics like child labor and deforestation. How far are companies supposed to go if the underlying drivers are long running and systemic? We have no good answers. Litigation risk is getting dumped on companies in emerging markets so the big companies can pass the buck. The suggestion in the article is that investors provide “overlays and adjustments” to account for all this. A better idea is to query the whole project and come up with something more coherent. No?

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Leading the Charge: Why Performance Measurement Matters for Climate and Biodiversity Funding Climate change and biodiversity loss are defining challenges of our time. Addressing them requires significant public investment, but throwing money at the problem won't suffice. We need leaders who can effectively manage complexity and measure performance to ensure these funds deliver real impact. The Challenge of Complexity Public financing for climate and biodiversity interventions navigates a complex landscape. Here's why: ➡ Multi-stakeholder Engagement: From scientists and NGOs to local communities, government agencies and commercial banks, successful solutions require collaboration across diverse groups. Leaders need to be adept at fostering communication and building consensus. ➡ Long-Term Vision: Climate change and biodiversity loss are long-term challenges. Leaders must balance immediate needs with future goals, ensuring investments deliver lasting benefits. ➡ Competing Priorities: Public budgets are always stretched thin. Leaders must effectively advocate for climate and biodiversity funding while demonstrating its value compared to other pressing needs. Performance Measurement: Steering the Ship So, how do we ensure these complex endeavors deliver results? Performance measurement is key: ➡ Defining Clear Objectives: We need to establish measurable goals that align with both climate change mitigation and biodiversity protection. ➡ Tracking Progress: Regularly monitoring progress towards objectives allows for course correction and adaptation as needed. Data collection and analysis become crucial tools. ➡ Demonstrating Impact: Leaders must be able to translate complex data into clear narratives that resonate with the public, policymakers, and co-financiers. Showcasing the positive impact of investments builds trust and secures continued funding. Leaders for a Sustainable Future The fight against climate change and biodiversity loss demands a new generation of leaders. They must be skilled at: ➡ Collaboration: Building strong partnerships across sectors and stakeholders. Strategic Thinking: Developing long-term visions and adapting to a changing environment. ➡ Data-Driven Decision Making: Utilizing data to measure progress, identify successes, and learn from failures. By prioritizing performance measurement and embracing complexity, public leaders can turn climate and biodiversity funding into a powerful force for positive change. 📢 What are your thoughts on the role of performance measurement in sustainable finance? #climatechange #biodiversity #publicfinance #leadership

🌍📊 The Boston Consulting Group and its partners have unveiled a groundbreaking framework addressing a critical challenge: ensuring the climate transition is both environmentally sustainable and socially equitable. While over 90% of banking executives recognize the importance of social considerations, only 31% integrate these into decision-making—a gap that risks "social washing" and undermines trust. This transition could displace 78 million jobs by 2030, yet frameworks like this illuminate pathways for mobilizing capital to underserved areas, blending financial tools, and defining measurable social KPIs. Case studies like the AGRI3 Fund, with its $1 billion mobilization target, exemplify how sustainable agriculture and rural livelihoods can thrive together. This framework is a call to action for corporations, banks, governments, and investors to embrace a just transition. Initiatives like the Scottish National Investment Bank's support for renewables training show what’s possible when equity is prioritized. However, more transparency and commitment are essential to bridge the gap between ambition and execution. A just transition is not a cost—it’s an investment in resilient economies and communities. The time to act is now. 🌱🤝 #JustTransition #ClimateFinance #SustainableDevelopment #GreenEconomy #ImpactInvesting #BlendedFinance #SocialEquity #Resilience #Innovation #ClimateAction

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In the linked article, Margaret Klein Salamon also writes “Only governments have the kind of spending power — and legislative power — that we need.” This is not true, and this truism is the single most important reason climate action remains trapped in no action. Only foundations' much larger cousins, workforce pensions control money with the mission, the duty and the scale to drive the “transitioning away from fossil fuels in a just, orderly and equitable manner” that COP28 correctly prescribed as the pathway to energy sufficiency complete with habitat longevity and social equity on a planetary scale in the 21st Century. We need foundations to show their pensions cousins this power they do not know they have. This power inheres in the vast size of the money they control, the programmatic purpose for which they are invested with that control and the forever time of both their control over money and their programmatic purpose. These characteristics of vast size, programmatic purpose and forever time give persons (also endowments, but pension are much larger and more specifically programmed) the power to negotiate with enterprise of any size, in any business any where on the planet for equity paybacks to an actuarial/fiduciary cost of money, plus opportunistic upside (for Actuarial Compliance as to current income), from enterprise cash flow prioritized by contract for suitability to the times, longevity over time and fairness all the time (for Fiduciary Faithfulness to safety ongoing into a dignified retirement across the generations). Negotiations for fairness can be effected through agreement on line item budge allowances across all six vectors of fairness in business: 1. Fair Trade (fairness to suppliers); 2. Fair Engagement (fairness to communities, of place and interest); 3. Fair Reckoning (fairness to Nature and Society and the Future): 4. Fair Working (fairness to workers and in the workplace); 5. Fair Dealing (fairness to customers and competitors); and 6. Fair Sharing (fairness to the savers whose savings are the original and ultimate source of the money made to flow into enterprise by its financiers, fiduciary or otherwise).

🌍 COP Highlights for AOSIS: Amplifying the Voices of Small Island Nations 🌊 At this year’s COP, AOSIS has once again been at the forefront, championing the urgent needs of small island developing states (SIDS) in the fight against climate change. Key Takeaways: 1️⃣ Loss & Damage Fund: Progress on operationalizing the fund to support SIDS, recognizing their disproportionate vulnerability to climate impacts. 2️⃣ Renewable Energy Transition: Strong advocacy for scaling up clean energy projects tailored to the unique challenges of islands. 3️⃣ Ocean Resilience: Highlighted the critical role of oceans in climate regulation, calling for greater focus on marine ecosystems and blue economy initiatives. 4️⃣ Financing Adaptation: Emphasized the need for simplified access to climate financing for SIDS, ensuring timely and impactful solutions on the ground. Conclusions: 🔹 AOSIS successfully positioned the Loss and Damage Fund as a lifeline for SIDS, ensuring it remains a top priority. 🔹 Renewed global commitment to fast-track energy transition initiatives and blue economy solutions for island nations. 🔹 Recognition of the need for capacity-building programs to help SIDS better access and implement climate financing. 🔹 Stronger partnerships were forged, with stakeholders committing to collaborative and inclusive climate solutions. This year’s COP also marked a landmark $300 billion pledge from richer nations to help developing countries prepare for and prevent climate change—a significant recognition of the disproportionate burden faced by vulnerable nations like SIDS. Was humbled to participate as IBL Together advocating for the needs of SIDS and global climate justice. A special thank you to Christine MAROT for the support to participate in this amazing conference. AOSIS continues to remind the world that the survival of small islands is a global responsibility. Their leadership is pivotal in pushing for ambitious action, solidarity, and innovative solutions. 💡 “The time to act is now—SIDS cannot wait.” #COP #AOSIS #ClimateAction #SmallIslands #Sustainability #LossAndDamage #BlueEconomy #IBLTogether #COP29 #azerbeijan COP29 Azerbaijan

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A weekend treat for everyone. Louie Woodall and I are at the 100 articles mark on Unpacking Climate Risk and we're publishing a couple of retrospectives. The attached link is to five of my favorites, pieces that cover a wide range of topics and hit what I think are important points. Louie's equivalent post is here: https://lnkd.in/eDKtP5q2 I hope you check out all 10 articles and consider subscribing and/or commenting. Bear in mind that we're completely independent, not trying to shill for a bank or for a vendor product, so we talk freely about climate risk without using corporate double speak. And if you want to buy us a coffee when you're done, it will be much appreciated. There's a link in all the articles. https://lnkd.in/eyah-23q

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What’s New in Verra’s Latest CCS Methodology Update? Learn how this tech adapts to project expansions, shared infrastructure development, and future innovations >> https://lnkd.in/gjSiE-Dx Verra, a leading non-profit VCM registry in the US has recently released its Verified Carbon Standard (VCS) modular methodology VM0049 for carbon capture and storage (CCS). #verra #carbonpricing #carbonscapture #carbonoffsets #carboncredits #carbonmarkets #carbonnews #carbonprices #ccs #ccus #climatechange #cleanenergy #decarbonization #emissionsreduction #energytransition #esg #greenhydrogen #netzero

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🌍 Exploring Scope 3 Disclosures in Our Top 100 Climate Engagement Program🌍 The ongoing debate around Scope 3 disclosures inspired us to dive deeper into the practices of U.S. companies we're engaging with through our Top 100 Climate Engagement Program. We found that 41% of these companies have set GHG targets that include Scope 3 emissions! This progress highlights a growing global commitment to comprehensive climate accountability and the importance of addressing indirect emissions in carbon intensive industries. #Sustainability #ClimateAction #Scope3 #GHGTargets #CorporateResponsibility Mackenzie Investments Merriam Haffar

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Great article on climate justice and impact investing's role by Margret Trilli, ImpactAssets' CEO/CIO in Fortune (posted on our site without a paywall: https://lnkd.in/eZRBc948). This is a very cogent roadmap to design around, and outlines how we are thinking about investment strategy at the intersection of climate solutions, racial equity, gender equality and community development (underpinning our thesis for the Climate Solutions Impact Fund for our donor advised funds, a multi asset class private investment strategy that we launched recently that's getting wonderful traction with our asset base). #climate #impactinvesting #donoradvisedfunds

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