Sackers’ Post

Measuring how much climate harm financial institutions enable This is a great read from Josephine Cumbo on how experts eg. at John Greenwood 's Corporate Adviser are scrutinising the actual performance of financial institutions on how much climate harm they finance. As we said in our report 'The Devil is in the policy detail', we need hard foundational data on the carbon footprint in portfolios to allow for truly objective, independent ratings. https://lnkd.in/erxdR6rs That is the only real way to assess financial institutional behaviours including progress against targets. The current approach is dominated by narrative reporting on transition plans and 'stewardship' and subjective assessments. This just allows financial institutions to deflect attention away from their actual performance now. Ratings agencies are unregulated and reference benchmarks use inconsistent which means firms can shop around for 'validation'. Worryingly, the FCA's sustainable investment label regime will not enable objective ratings of investment managers' performance. It is a voluntary regime and for those funds that do use a label it is to all intents and purposes a self-regulatory system. The FCA's regime actually risks providing 'official' validation of greenwashing. See: https://lnkd.in/ectcqVNU #ESG #climatefinance #financialregulation #greenwashing

It was great to be part of such a distinguished panel with Fidelity last week. If you weren't with us live, then here's a link to the recording. #compliance #knowyourcustomer #sustainableinvesting  #ESG #investgreen #ESGinvesting #sustainablefinance #financialadvisers #financialadvice #pensions #investmentplanning #financialplanning https://lnkd.in/eYKAy3FD

Looking forward to speaking on this panel at ESG Investor's Nature Data event tomorrow. There's no better time than the present as a financial institution to start leveraging nature data in decision making and a lot can be accomplished with a limited collection of datasets. Choosing the right mix for your needs is key and I'm looking forward to sharing the pros and cons of different approaches including spatial, modelled data and AI. #mrio #lca #spatial #supplychains #biodiversityfootprinting #disclosures #ai

Featured content: LGT Capital Partners' piece on the three dimensions of impact they are building on to address climate change and achieve the goal of net zero by 2050, was chosen for our 'Top Picks' newsletter. It was selected from items uploaded to the Pensions for Purpose platform in July as one of six articles to share with members. #NetZero #ClimateChange #PensionsforPurpose https://ow.ly/RGUX50SZ4Gi

Investors need to integrate financially material ESG risks and opportunities into their portfolios. AllianceBernstein say it is no easy matter but a new approach to credit research helps portfolio managers make better investment decisions. #ESG #PortfolioManagement #PensionsforPurpose https://ow.ly/7ge050TyXfX

Associate Ciara Burke takes a look at how trustees integrate #ESG factors into their investment and stewardship decision-making and looks ahead to what regulatory reforms may be coming down the track 🌊 You can read Ciara's full blog, down below ⬇️ https://ow.ly/1CR550UormU

Featured content: Barnett Waddingham's article on the importance of defined contribution pension schemes providers being transparent on their climate-change actions and sustainability-related risks on behalf of their members, was chosen for our 'Top Picks' newsletter. It was selected from items uploaded to the Pensions for Purpose platform in May as one of six articles to share with members. #Sustainability #ClimateChange #PensionsforPurpose https://ow.ly/E7Mi50SgX2q

As per Reuters the top investor in ESG and "Green" are European pension funds... https://lnkd.in/dcbcVH9v Considering the fact that most of the ESG is driven by regulations and not by a real economical need .... I wonder would that succeed and what would be the potential negative effect on the already "stressed" EU pension insurance system?

𝐈𝐬 𝐄𝐒𝐆 𝐚 𝐝𝐞𝐬𝐩𝐞𝐫𝐚𝐭𝐞 𝐚𝐭𝐭𝐞𝐦𝐩𝐭 𝐟𝐫𝐨𝐦 𝐚𝐜𝐭𝐢𝐯𝐞 𝐦𝐚𝐧𝐚𝐠𝐞𝐫𝐬 𝐭𝐨 𝐣𝐮𝐬𝐭𝐢𝐟𝐲 𝐟𝐞𝐞𝐬? Financial planning is horribly tribal 😵💫 Despite being an ageing population and a profession with the opportunity to transform lives 🥺 Some financial planners seem obsessed with “the good fight” and scoring points against other financial planners 🤦♂️ The main lines of attack are around fee models or active vs passive‼️ Whilst both are highly nuanced with many shades of grey, the debate reduces them to black and white: good vs evil 😇👿 As ESG doesn’t work the same via passive investing (it’s hard to influence when you can’t control the flow of capital) some frame it as a disingenuous marketing angle to justify exorbitant fees… 🤬 There are lots of problems with this argument, first and foremost: it deters one of the most powerful tools we have to fight climate change 🤦♂️ “𝗠𝗼𝘃𝗶𝗻𝗴 𝗮 𝗽𝗲𝗻𝘀𝗶𝗼𝗻 𝘁𝗼 𝗮 𝗺𝗼𝗿𝗲 𝘀𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗹𝗲 𝗳𝘂𝗻𝗱 𝗶𝘀 𝟮𝟳 𝘁𝗶𝗺𝗲𝘀 𝗺𝗼𝗿𝗲 𝗲𝗳𝗳𝗲𝗰𝘁𝗶𝘃𝗲 𝗶𝗻 𝗿𝗲𝗱𝘂𝗰𝗶𝗻𝗴 𝘆𝗼𝘂𝗿 𝗰𝗮𝗿𝗯𝗼𝗻 𝗳𝗼𝗼𝘁𝗽𝗿𝗶𝗻𝘁 𝘁𝗵𝗮𝗻 𝗻𝗼𝘁 𝗳𝗹𝘆𝗶𝗻𝗴 𝗮𝗻𝗱 𝗯𝗲𝗰𝗼𝗺𝗶𝗻𝗴 𝗮 𝘃𝗲𝗴𝗮𝗻 𝗰𝗼𝗺𝗯𝗶𝗻𝗲𝗱” 👇 I don’t think anyone can credibly claim that people don’t care about the planet 🫣🌎 Or that mankind has not contributed to a climate which sees the UK mercury over 40 degrees in Summer and over 1/3 of Pakistan flooded in 2022. 🔥🌊 So why try to belittle one of the most powerful tools to change the future 🤷♂️ Is scoring points against peers really that important 🤷♂️ Most sensible planners agree that “asset allocation” and “behaviour” drive returns: beyond this, your investible assets can act as a powerful force for good, and one that should transcend the politics of financial planning. I’m happy that some of my portfolio and my daughter’s portfolio are invested ethically and in-line with my values. What do you think? Is ESG just a fad? Or a desperate last attempt for active managers to cling on to their fees? #esg #impactinvesting #impact https://lnkd.in/eQ8yP9GB

Sustainability has emerged as a focal point for financial institutions in the UK, spurred by regulatory mandates from the Financial Conduct Authority (FCA) in December 2021. Now, two years on, the journey towards sustainability is marked by challenges and crucial insights. In this article, we explore some points discussed in our November 2023 Paris Alignment Forum (PAF) event, including how financial institutions are navigating this shift, from balancing compliance with impactful outcomes to integrating climate strategies into investment decisions. 💡 Check this out.