Tag Archives: climate change

Pay emerging markets to help stop climate change

Among developed countries investors, there are various interpretations of the strength of the commitment to environmental, social and governance (ESG) factors in emerging markets, ranging from the cynical to the idealistic.

The cynical view would be that there can be no “real” ESG in emerging markets because too often they are plagued by corruption, therefore investors cannot trust what companies in these countries report.

The idealistic view, on the other hand, would see every little step towards introducing ESG as a wonderful sign that these countries are finally deciding to adopt the same values as Western democracies.

While both extremes are wrong, sadly even the moderate take misses the main difference between emerging markets and developed ones: the effect of development itself on ESG — and in particular on the “E”.

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Debate starts on widening the mandates of central banks

The European Central Bank (ECB) seems to be wading deeper into political territory, opening an interesting debate on what exactly is the role of central banks.

The ECB recently published a guide to the banks under its supervision, explaining how it expects them to consider risks related to climate change and the environment in their business strategies and their risk management.

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Covid-19 offers chance to speed up ESG reforms

The world is slowly coming to terms with the idea that Covid-19 is here to stay and we will have to somehow learn to live with it.

Coupled with the imperative to try to slow down global warming to avoid a climate catastrophe hitting today’s young, this has huge implications not only for our way of life but also for our economies, the way we shop and very likely our diets.

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