Surviving the ESG odyssey

We won’t survive the ESG odyssey by aiming for complete precision in our climate investing modelling – uncertainty and probability should be placed at the heart of the agenda

Andrew Parry Head of investments, JO Hambro Capital Management


Andrew Parry, head of investments, JO Hambro Capital Management

COP27 came hot on the heels of the UN publishing a report that highlighted the need for stronger commitments, as the world is on track for a 2.5C temperature rise by 2100.

Tensions in the Glasgow Financial Alliance for Net Zero group prompted it to abandon requirements for its members to additionally sign up for the UN’s Race to Zero campaign, with three US banks reportedly considering withdrawing from the alliance. Yet, the ambition of ESG markets continues to grow, while concrete actions are vague and stalled, raising concerns about net-zero and Paris-aligned commitments.

The ESG and sustainable investing space has long supported the narrative of the need to integrate ESG factors in the decision-making process.

Asset managers have responded to the call by creating departments specialising in ESG research, engagement and reporting, subscribed to a number of initiatives, increased their data budget to accommodate these ESG factors and improved their disclosure.

As expected, this journey to Ithaca has been long and difficult, with many challenges on the way that have reshaped how the finance industry operates. And while ESG covers a broad spectrum of topics, climate change has gained significant attention and resources.

Read the full story in ESG Clarity’s November 2022 digital magazine.

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