European banks associate executive compensation with diversity; put a price on nature


The ESG Insider newsletter compiles news and insights on environmental, social and governance developments leading to changes in business and investment decisions. Subscribe to our ESG Insider newsletter and listen to the “ESG Insider” podcast on SoundCloud, Spotify and Apple podcasts.

How much would you pay for a bumblebee?

This is the kind of unusual question that asset managers, executives and insurers will increasingly ask themselves as they seek to measure the impact of businesses on the world’s natural resources and how this growing toll might. , in turn, affect income and profits. The effort to put a price on nature takes a small but important step forward on June 10 with the launch of the Nature-Related Financial Disclosures Task Force, or TNFD.

TNFD launch is timely – earlier this week scientists reported that CO2 has reached the highest level since precise measurements began 63 years ago. “If we are to avoid catastrophic climate change, the top priority must be to reduce CO2 pollution to zero as soon as possible,” said Pieter Tans, senior scientist at NOAA’s Global Monitoring Laboratory.

In this week’s newsletter, we take a look at how the energy sector grapples with the future of natural gas as it accelerates toward less carbon-intensive operations. We also explore the challenges that major European banks face in linking executive compensation to diversity and inclusion goals. And we chat with Ceres about what the recent ouster from Exxon’s board means for directors in other industries.

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Best Stories

Fate of the Bumblebee: Task Force Tackles Financial Risk in Nature

The Nature-Related Financial Disclosures Working Group is launched this week with the aim of providing a framework in 2023 for businesses and other organizations to “report and act on evolving nature-related risks.” , in order to support changes in global financial flows. negative results for nature and towards positive results for nature. “In other words, to inaugurate a coherent system of definitions, benchmarks and indicators that allow companies to measure, report and possibly address the risks associated with nature in their supply chains.

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Natural gas in transition: high-stakes battles over gas use are taking shape

With falling costs for renewable energy, the sustainability of the gas sector depends on its cost competitiveness and its flexibility to support intermittent energy sources. Changes in gas use will in turn dictate demand for pipeline capacity, with some assets at risk of being stranded. Other pipelines are expected to benefit from the growth lliquefied natural gas demand and forays into the hydrogen mixture in the gas stream. Read the first article in a five-part series on natural gas and the energy transition.

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Big European banks link executive pay with diversity goals as trend accelerates

Almost all of the major European banks now link executive pay with diversity and inclusion goals, according to data from S&P Global Market Intelligence. Adopting diversity goals in executive compensation reviews is “important, because at the end of the day the elements you use to determine compensation are a very strong indication of what you say is important from a perspective. strategic, ”said Katy Bennett, Director of Diversity and Inclusion in Financial Services at PricewaterhouseCoopers. But achieving those goals is the hardest part.

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Corporate governance reform can help create long-term value in Asia-Pacific

Corporate governance is becoming a hot topic among investors, governments and businesses in Asia Pacific. Regulators and businesses across the region seek to ensure that all stakeholders, including management teams and shareholders, are on the same page, with the aim of creating long-term value. The right talent, technology and transparency are needed to improve governance, new research findings.

Read more >>

Podcast

The ouster from Exxon’s board of directors due to climate change has big implications. Here’s why.

Exxon Mobil shareholders recently voted to replace three board members with directors proposed by a small group of activist investors – known as Engine No. 1. The group claimed that Exxon did not was not moving fast enough to tackle climate change and that the board needed a new perspective to speed things up. To get a feel for what the vote means for both Exxon and other companies, we spoke with Andrew Logan, senior director of oil and gas at Ceres, who works with investors to push companies to fight. against climate change.

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Events to come

USA Sustainability Week
The Economist
June 8-11
In line

Integrating climate risks into credit risk portfolios with Climate Credit Analytics
S&P Global Market Intelligence
June 10
In line

IR Europe 2021
Responsible investor
June 14-18
In line

Discussion Forum: Preparing for the Convergence of ESG Reporting Standards
CRISIL
June 15
In line

Fostering value creation through ESG integration: three vital steps for every bank
S&P Global Market Intelligence
June 15
In line

How can ESG policy and regulation open up opportunities for insurers?
S&P Global Market Intelligence
June 16
In line

United Nations Conference on Biodiversity
October 11
Kunming, China

The 2021 European SDG Summit
CSR Europe
October 11-14
In line

COP26
United Nations Climate Change Conference
November 1-12
Glasgow