Reporting: Carbon Call launched – new carbon emissions accounting initiative
Climateworks Foundation announced the launch of ‘Carbon Call’, a new initiative, with participation from over 20 companies (incl. Microsoft, EY, and KPMG), aimed at addressing the need for a reliable and interoperable global carbon emissions accounting system. The initiative will mobilise collective investment and resources towards expanding transparent, comprehensive, and regular emissions reporting from companies. Carbon Call supports underlying data and science to produce comparable, combinable, and sharable information to enable efficient assessment of companies’ carbon accounting. Read more.
Reporting: Investor-backed initiative TPI launches sector-specific framework to assess companies’ climate goals and progress
The Transition Pathway Initiative (TPI) published ‘the Sectoral Decarbonisation Pathways’, its detailed framework for guiding investors in assessing corporate climate targets across high-emitting sectors (Energy, Industrials and Transport). TPI’s pathways are used by the Climate Action 100+ investor engagement network, and by major asset managers and owners. The new framework utilises an economy-wide emissions budget approach to develop sectoral budgets, whilst considering the unique sectoral challenges, where emissions are concentrated, and how costly it is to reduce for each. Read more.
Ratings: ERM launches ESG ratings platform for private markets
Sustainability advisory firm ERM announced today the launch of ‘ESG Fusion’, its new AI-enabled, on-demand, custom ESG ratings platform for private markets; which aims to enable faster investment decision-making and opportunity identification, and act as an early stage ESG due diligence tool. The new platform is powered by intelligent web-crawlers, APIs from an ecosystem of data providers, and alternate data sources to provide detailed ESG data and content, which is reviewed and curated by ERM experts. Read more.
Ratings: Morningstar culls 27% of European sustainable funds after fresh review
Morningstar has reversed a previous decision to label more than 1,200 EU funds as ‘sustainable’, after scrutinising their documents. Most of those that had the label removed recently self-identified as ‘light green’ Article 8 funds under the EU Sustainable Finance Disclosure Regulation (SFDR). Under the SFDR, funds can self-describe as ‘light green’ Article 8 funds if they claim to promote environmental or social characteristics in their investment policy or ‘dark green’ Article 9 if the policy has sustainable investment as its objective. In contrast, Article 6 funds do not integrate any kind of sustainability into their investment process. Morningstar said it had now reverted to its “pre-SFDR European universe of sustainable funds” which includes any funds that have “sustainability-related terms in their names and clear descriptions of their ESG-focused processes in key investor information documents”. This reversion to its earlier methodology has resulted in a “smaller” universe of ‘sustainable funds’. Read more.