David Russell’s Post

Given what we know about climate change, how do you pay a pension 40 years from now? And why is focusing on oil and gas companies misguided? What do you think? And would you agree that Net Zero isn't about divestment, particularly when you own a slice of everything, everywhere? Join David Russell and I, as we get into the best fiduciary interests of pension funds, and how the Transition Pathway Initiative (TPI) works to create sector specific, short, medium and long term targets to achieve Net-Zero by 2050. We go through; * Genesis of the TPI * Universal Ownership and proxy voting * The need for policy on nature and biodiversity * Assessing Sovereign Climate Opportunity & Risk (ASCOR) This conversation was had during our time together at the Investor Group on Climate Change (IGCC), after David finished his session on Corporate Climate Engagement with Alison George at Australian Ethical Investment, Alison Ewings at QIC and Sasha Courville at Aluminium Stewardship Initiative. TPI is supported by The London School of Economics and Political Science (LSE) and the Grantham Research Institute on Climate Change & the Environment. In the past week David also been speaking at the International Corporate Governance Network (ICGN) Melbourne Conference, hosted by the Australian Council of Superannuation Investors (ACSI). If you're in London (and already have a ticket), you can see David in person at the Responsible Asset Owners Global Symposia (RAOGlobal.org) this Thursday 21st, speaking with Rory Sullivan, Mark H., Naomi Clark and Sonja Laud (Schemmann) on 'how to capitalize on the transition to a low-carbon economy.' Thank you particularly to Rebecca, Duncan and Fergus for the opportunity to bring you this from the IGCC Summit, and finally; If you're not sure how you're going to strategically lead your organisation internally and externally through this turbulent time, or communicate your vision effectively, reach out and let's discuss it in confidence. I'm here to help! #RAOEurope2024 #IGCCSummit24 #Mission1Point5 #strategy #leadership #communications #investing #finance #climate #impact

After so much work and a huge amount of support from our members and network partners, the second iteration of the Net Zero Investment Framework is now live for consultation. NZIF 2.0 seeks to build on the learnings of investors, earned across three years of implementation, as well as address some of the issues discovered along the way.   This includes a repositioning of the portfolio decarbonisation reference target after our research identified that the use of the 'financed emissions' metric alone, and over a short-term horizon, can have unintended consequences. The portfolio coverage target has also been renamed the "asset alignment target" to better reflect its recommendations and usage, along with new guidance on measurement to help investors who focus on high-impact sectors.   Throughout, we have included more than 40 recommended action points for investors to adopt at their discretion, based on industry best practices and prominent research and reports. A new figure, the NZIF wheel pictured below, also seeks to highlight the interconnected nature of each core area of the framework and their equal importance.   Special credit to Adrian Fenton, PhD, Mahesh Roy and the wider team at IIGCC who helped to create this fantastic resource, as well as to our valued partners in the Paris Aligned Investment Initiative, Asia Investor Group on Climate Change (AIGCC), Ceres, Inc., and Investor Group on Climate Change (IGCC).   NZIF 2.0 aims to make life easier for investors as they create and implement a net zero transition plan, bringing so many good ideas together in one place. We now ask our members, fellow investors and peers in the industry to read the consultation document and to share your comments before 24 April using the links below. Thank you.   https://lnkd.in/eRvax7Mi   #NetZero #NZIF #ClimateChange #Investing

Exciting News from the IIGCC! The Net Zero Investment Framework (NZIF) Version 2.0 is now available for consultation. Some key highlights: - Re-branding of portfolio targets to objectives with continued focus on asset alignment targets - Clear link between essential action in the framework and NZAMI fulfilment - Updated asset class guidance for sovereign bonds and real estate

A well-made argument for the need for standardization in #esg #disclsoure as a key component of the collective approach to addressing #climatechange. Applying this same logic, I would argue that to address the vast range of socioeconomic and environmental challenges currently faced in our own market, it is critical that we all reach a standardized level of understanding with respect to these issues and their relevance to our organisations. When it comes to understanding ESG, ensuring that key stakeholders are all starting from the same base of knowledge can make a world of difference to #realworldimpact. This is particularly important for institutional investors. If you're a bank, insurer or pension fund tasked with #responsibleinvestment and #stewardship of your clients/members' assets, then building up your internal team's knowledge on ESG should be your top priority right now. Number one on your to do list should be finding a partner you trust (like Krutham, for example) that can support you in this endeavour. https://lnkd.in/dh5NKiZq

In 2020, just 10% of ASX200 companies tied executive remuneration to climate performance. Today, that figure has surged to 54%. While this reflects growing recognition of the link between leadership accountability and decarbonisation efforts, are these measures truly effective in driving meaningful climate action? A new report by Pollination and the Investor Group on Climate Change (IGCC) finds that many of these linkages fall short due to the absence of clear, actionable transition plans. Without detailed short- and long-term strategies, executive incentives tied to climate goals may lack the focus needed to ensure genuine progress. What can companies do to improve? 💡 Develop robust transition strategies to align short, medium, and long term climate goals. 💡 Ensure the weighting of climate-related incentives reflects the materiality of climate risks and opportunities. 💡Use these incentives to move beyond commitments and drive measurable decarbonisation. #ClimateAction #ExecutiveLeadership #Decarbonisation #Sustainability #CorporateGovernancw

Nice piece in today's AFR by my superstar colleague Zoe Whitton, co-writing with Rebecca Mikula-Wright, about attempts to link executive pay to climate performance (and why there is lots of room for improvement).

Australia has 598 threatened species 🐦🪲🐠🦈🦭🦜 There are 1,989 large corporations with turnovers over $250 million 🏭🏦. If three companies each took responsibility for one species in their operational area, tying that species' health to their own metrics of success and value, we could dramatically reduce the extinction problem. 💰⛓️💥🌿 In the short term, tie the leadership bonuses, shareholder payouts and even tax rates to the long-term health and success of threatened species within the operational footprint of large corporate businesses. We know financially based incentives and performance systems don’t work for long-term effective change. In fact, they often have detrimental impacts. So leverage them to initiate the more difficult cultural and values change required in the medium term. 🏜️🏔️🏕️ Over the long term. Align organisational values and benefits with a connection to, reverence for and protection of nature or a key species. As an organisation purchase and protect land in perpetuity. Align organisational success with the success of the ecosystems connected to operations. Align team days out with connections in nature. Show through leadership, experience and values the interdependence of organisational success with thriving natural ecosystems. Imagine if every large corporation took responsibility for an umbrella or keystone species in Australia. How do you imagine our ecosystems and organisations might look? #Regenerative #Sustainability #Climate #TransitionDesign

In 2020, just 10% of ASX200 companies linked executive remuneration to climate performance; now that figure has jumped to 54%. But are such linkages effectively driving decarbonisation? Pollination's Zoe Whitton and Rebecca Mikula-Wright from Investor Group on Climate Change (IGCC) write in today's The Australian Financial Review that the absence of clear transition planning is limiting the effectiveness of many such efforts. What can companies and leaders do to make such linkages more effective? Pollination and IGCC's report sets out principles that can drive success and then benchmarks leading Australian companies against those principles. Read the opinion piece at https://lnkd.in/gPpjzrhk Check out the full report at https://lnkd.in/gKtTc8kE #netzerotransition #sustainablebusiness #executiveremuneration Georgia Monaghan Mitchell Shannon Fergus Pitt Max Hamra Erwin Jackson Richard Proudlove Bethany Noble

The US election results are in, and while not entirely surprising, they’re undeniably disappointing for those of us committed to a just, sustainable economy. So, what should you do with your investments? Stay calm and rebalance. Markets need time to settle, so avoid emotional decisions. But what about climate action and the green economy? The outlook isn’t great. We’re likely to see waning support for green industries in the US, making international cooperation at COP29 challenging. Yet, this only underscores the importance of informed, impact-driven investing. Join us for a free webinar on November 19: Next Steps for Green Investors. Tim Nash will be in conversation with Martin Grosskopf, Portfolio Manager for Canada’s oldest green fund, the AGF Global Sustainable Growth Equity Fund. We’ll explore what these changes mean for the green economy—and for your portfolio. RSVP today via the link in the comments and get ready to navigate the path forward. #GreenInvesting #SustainableFinance #COP29 #ImpactInvesting #USPolitics #GoodInvesting

The US election results are in, and while not entirely surprising, they’re undeniably disappointing for those of us committed to a just, sustainable economy. So, what should you do with your investments? Stay calm and rebalance. Markets need time to settle, so avoid emotional decisions. But what about climate action and the green economy? The outlook isn’t great. We’re likely to see waning support for green industries in the US, making international cooperation at COP29 challenging. Yet, this only underscores the importance of informed, impact-driven investing. Join us for a free webinar on November 19: Next Steps for Green Investors. Tim Nash will be in conversation with Martin Grosskopf, Portfolio Manager for Canada’s oldest green fund, the AGF Global Sustainable Growth Equity Fund. We’ll explore what these changes mean for the green economy—and for your portfolio. RSVP today via the link in the comments and get ready to navigate the path forward. #GreenInvesting #SustainableFinance #COP29 #ImpactInvesting #USPolitics #GoodInvesting