ESG funds blend financial analysis with environmental, social, and governance considerations, seeking sustainable and ethical investments. Environmental metrics include greenhouse gas emissions, energy use, waste, pollution, resource conservation, and animal welfare. Social factors gauge relationships with employees, suppliers, customers, and communities. Governance aspects encompass leadership, compensation, transparency, controls, and shareholder rights. Investors favor ESG funds for potential long-term gains and reduced risk. Originating from early 20th-century social investment movements, ESG investing surged in the 2000s, catalyzed by initiatives like the UN PRI and the Paris Agreement. By 2023, ESG funds managed over $30 trillion globally. In India, with only nine ESG funds totaling $1.3 billion, growth is hindered by limited awareness, performance concerns, and reporting standards gaps.
Climate scenario analysis, a strategic planning tool, is gaining traction for its utility in examining potential future scenarios and assessing the resilience of an organization’s business strategies against various climate-related risks. Businesses, financial institutions, and regulators need to adopt a progressive approach to integrate scenario analysis into strategic planning practices.
Climate stress tests are rapidly gaining traction to assess whether financial institutions and systems can withstand severe climate-related risks. Many regulators globally are employing such tests. The Bank of England was the first to initiate climate stress tests, for insurance companies in 2019 and for banks in 2021. Regulatory authorities in Australia, Canada, the EU, France, Hong Kong, and Singapore have since followed suit.
Climate indices are specialized stock market indices designed for passive investors seeking to invest in companies that incorporate climate change considerations into their business strategies. These indices serve as benchmarks for integrating climate change into securities selection, portfolio construction, and risk management.
Jubilee Post India is exceptionally vulnerable to the adverse consequences of climate change, given its diverse geo-climatic features and socioeconomic conditions. These adverse consequences are already affecting the country’s economy […]
Indian PSU India is exceptionally vulnerable to the adverse consequences of climate change, given its diverse geo-climatic features and socioeconomic conditions. These adverse consequences are already affecting the country’s economy […]
The New Indian Express VIZAG: India has a common framework for climate vulnerability assessments but hasn’t yet established one on climate risk. It also lacks a systematic methodology for evaluating […]
The Free Press Journal India is yet to create a common framework for evaluating risks due to climate change and a systematic methodology for ascertaining the extent to which development […]
The Times of India NEW DELHI: India is yet to create a common framework for evaluating risks due to climate change and a systemic methodology for ascertaining the extent to which development […]
The Economic Times India is pushing for climate adaptation action despite the lack of a framework. Six states require $5.5 billion annually. Economic challenges and borrowing constraints limit investment. The […]