Agenda

Chair’s Welcome Remarks

Mark Barton, Forum Chair

Headline Partners Opening Remarks

S&P Global/ S&P Sustainable1

Sustainable Investment Spotlight

Analysis of how the pandemic has challenged asset owners and investors in the region and globally to think differently about sustainable portfolios- are political and regulatory roadblocks standing in the sector’s way? 

The pandemic has been a wake-up call for asset managers and investors alike, highlighting social and health inequalities and driving calls for an inclusive, green and resilient recovery. Companies with poor ESG characteristics are worst affected by the novel virus. Has COVID -19 dispelled the misconception that ESG investing produces lower investment returns? Is this the triumph of long termism over short termism?

Virtual Panel Discussion

Can a more multilateral approach in US foreign policy under Biden result in increased foreign investment and accelerate the drive for a green and inclusive recovery globally? Can an upsurge in ESG investing play an integral role in recovery and resilience planning?

Federal and State policies are accelerating the ongoing US low carbon energy transition which has increased in momentum with the election of President Biden. Financial innovation is driving meaningful change in many investment sectors while social innovation and culture development also continue to evolve. With energy costs curves seen as changing for the long term, levelling the playing field for lower carbon energy production, and interest in having a positive impact with investment dollars from millennials on the rise, a top-down, bottom-up race is under way which has created an important new dynamic. Accelerating these trends further can help make the US a leader on both designing and enabling sustainable financial systems as the wold moves into the post pandemic recovery phase.

• Can Biden make climate progress with a divided congress? Will Biden’s Earth Day pledge for 2030 define his presidency?
• What is the current state of play in the ESG landscape in Canada and how does this compare to the US?
• As more investors choose ESG over traditional indexes how important is transparency in reporting?
• Is there a need for a global taxonomy to meet 2050 targets and drive a green, resilient recovery and does this require a consolidated approach to target setting?
• Pros and cons on cross border carbon taxes
• How should ESG investors be thinking about Canadian energy and does this require a disruption in Canadian domestic policy- how far has Canada advanced the green agenda?

Climate Leader Insight
Changing Climate for Private Equity 

Speakers:

• Senior ERM Representative 
• Dazzle Bhujwala, Director, Investor Network, Ceres

Chair’s Welcome Remarks

Mark Barton, Forum Chair

Sustainable Investment Spotlight

Will the 2020’s will be a decisive decade in terms of meeting the objectives of the UN SDGs? The SDG financing gap has been particularly severe for emerging markets, already climate vulnerable and hit hard by the pandemic- what needs to be done to ensure stable capital flows?

• Using strategic asset allocation to manage the transition towards a 1.5c aligned portfolio. How can climate change risks be fully understood and integrated into the decision making process?
• For many financial market participants the outlook has changed materially, and the market is repricing accordingly. To navigate this turbulence successfully many global financial institutions must take a thoughtful approach to both tactical and strategic asset allocation.

Virtual Panel Discussion

How ready are asset owners for the green energy transition and how can they future proof their investment portfolios? What will a 2050 decarbonised global economy look like and how can the insurance industry assist the transition?

• Decarbonisation requires co-ordinated national and international policy. Update on the work of the UN –convened Net Zero Asset Owners Alliance to achieve carbon neutrality by 2050
• Examining the role of banking and insurance in shaping responsible investment in addressing the challenges of a green recovery: role of the recently launched UNEP FI Principles for Sustainable insurance
• What new data is required to support this transition to manage the net zero transition in domestic policy in both the US and Canada- the impact on net zero target setting and the advantages of standardised target setting
• How are ESG and responsible investors planning to accelerate the net zero transition with better data and address the challenges of ESG investing across asset classes
• Using strategic asset allocation to manage the transition towards a 1.5c aligned portfolio can climate change risks be fully understood and integrated into the decision making process?
• Challenges with setting portfolio level climate targets – will this be enough to set the stage for rapid change in line for COP26 and address the reputational risks around the “S” in ESG

Chair’s Welcome Remarks

Mark Barton, Forum Chair

Sustainable Investment Spotlight

Are less carbon intensive, more climate solutions oriented portfolios likely to outperform traditional portfolios in the long term and are the world’s governments more likely to aggressively strengthen climate policies in the years ahead? 

Could COVID-19 inadvertently contribute to meaningful progress toward meeting the goals of the Paris Climate Agreement and several of the United Nations Sustainable Development Goals?

Climate Leader Insight

The democratisation of data- empowering choice and ESG decision making

• The ESG data challenge- mining ESG data- democratising access to data- why is it important?
• ESG materiality, inputs and scoring. Pricing climate risk in a portfolio
• Transparency in ESG data and creating ESG scores- how to leverage transparent materiality
• Examining variances in data collection and scoring methodologies
• Proprietary data inputs and how they are used to evaluate the pricing process
• Pros and cons – data silos what processes need to be put into place?
• Data governance – problems associated with duplicate data-how do you avoid this?
• Misuse of data- regulation and privacy laws

Virtual Panel Debate         

Globalisation and the pressure for change: evaluating current ESG and responsible investing strategies in North American in line with geopolitical trends-  challenges of ESG investing across asset classes; fixed income, equities, infrastructure and real estate

• Unlocking capital to finance UN SDGs- should investors in the region be pushing for more regulation and transparency in climate, ESG disclosure and integration?
• What are the challenges posed by halving greenhouse gas emissions and what are likely implications cross border carbon taxes in the region and beyond?
• What are the new opportunities for responsible investors with the rapidly changing landscape in the US and will this widen the transition towards sustainability globally?
• Opportunities for investors in green infrastructure projects- can green infrastructure investing accelerate the drive to a low carbon economy?
• ESG invest opportunities in fixed income and infrastructure- current levels of green bond issuance in the for both infrastructure projects and emerging markets
• Will the next boom in sustainable finance be in ESG derivatives?
• ESG is here to stay – and hedge funds are buying in: recognising that purpose and profit are no longer mutually exclusive, a growing number of institutional investors expect hedge fund managers to incorporate environmental, social and governance (or ESG) factors into their investment activities.
• Greening the listed derivatives markets- challenges of ESG integration across investment portfolios as both issuers and investors are looking to derivatives markets to hedge their exposure and product innovation is developing rapidly.

Chair’s Welcome Remarks

Mark Barton, Forum Chair

Climate Leader Insight

Understanding ESG ratings and performance: translating corporate performance and governance in sustainability into financial performance- as more investors choose ESG over traditional indexes with the differences between being an ESG ‘winner’ or ‘ loser’ become more meaningful?

• In light of the COVID -19 pandemic the focus on sustainability and ethical issueshas continued to sharpen. The evolution of ESG measurement ESG performance is a growing consideration in company valuations. In a business environment where sustainability and ethical impact are central to survival, businesses can use ESG criteria to assess their non-financial performance. No single gold standard exists for ESG ratings, which are reliant on the robustness of the data used, and vary in consistency creating significant challenges for investors when trying to evaluate a business by its ESG credentials. While the concept of an ESG profile is both valued and broadly understood by many organisations, the ability to link it to tangible outcomes is often lacking, undermining its full potential. This is largely due to inconsistencies in measuring it, and lack of a single, recognised methodology.
• Examining the link between sustainability reporting and investors
• Analysing the benefits of forward scenario risk planning
• How to measure sustainable and responsible investment performance
• How to undertake effective ESG screening and ratings
• The challenges in ESG measurement and the impact of ESG criteria on due diligence

Virtual Panel Debate         

Benefits and short comings of forward scenario risk analysis- a holistic approach to strategy and impact assessment? How can forward scenario analysis aid the development of effective financial regulatory frameworks to allow for the management and mitigation of climate risk?

• Understanding climate risk exposure- how do investors successfully mitigate, adapt and transition their portfolios?
• Climate aligned investing and forward scenario risk analysis – should all financial systems be aligned with climate risk resilience programmes?
• Are the financial community and in particular investors really engaging or is this just greenwashing?
• Integrating climate change into the investment process.
• Stress testing- how do central banks across Europe and North America compare?
• How important is stress testing and how are financial institutions aligning targets with impact?
• How to incorporate ESG into decision making as well as impact- measuring exposure to natural capital risks
• Portfolio mitigation- lowering exposure to carbon risks
• Portfolio adaptation- climate related solutions and assets more resilient to climate changed
• Portfolio transition- aligning investment to 1.5 degrees
• How important is stress testing and how are financial institutions aligning targets with impact?

Climate Leader Insight

How can AI, Quant and Big Data help improve transparency in ESG investing? How can sustainable investors capitalise upon AI to better measure ESG in their portfolios?

Chair’s Welcome Remarks

Mark Barton, Forum Chair

Sustainable Investment Spotlight

Greening an inclusive recovery and financing a sustainable future- how to push for a net zero economy post pandemic- calls for global collaboration, carbon taxes and the need for a standard taxonomy? The role of the banking sector in directing capital away from environmentally threatening and towards those aligned with zero carbon. 

• While well intentioned the sustainable finance market is an opaque market with differing terminologies interpreted in multiple ways. There is a need to create cohesive initiatives coupled with greater transparency and disclosure to mitigate climate change and limit societal impact.
• Understanding the social, political, and economic impacts- can sustainable business practices be encouraged through integrated capitalism?

Virtual Panel Debate         

How can responsible investors ensure that ESG is heart of portfolio construction and that financial systems function to secure sustainable outcomes during post COVID recovery? Short termism versus long termism and importance of engagement with companies, governments and investors.

• Responsible investors have an integral role to play in reducing harmful impacts on public health, the severity of the associated economic slowdown and the deepening of inequality in societies. Economic measures must be evaluated not only according to their overall macroeconomic impact, but also their ability to support other priorities critical to public wellbeing and long-term economic strength, such as combating inequality and enabling the low-carbon transition. As outflows from funds see some asset owners and managers facing liquidity pressures, as well as declining fee revenues resulting from outflows and overall market falls.
• Should signatories to the Principles for Responsible Investment respond by using their influence with companies and governments through their investment decisions- even if that limits short-term returns?
• Examining how engagement and collaboration with both the public and private sector is crucial if the region and the global economy is to achieve a green and inclusive global recovery.
• What does the COVID-19 crisis mean for the responsible investor and how has it refocused sustainable and responsible investing?
• The role of wealth management and family offices in driving the ESG agenda- how can wealth be managed sustainably?

Chair’s Welcome Remarks

Mark Barton, Forum Chair

Climate Leader Insight

Responsible investing for real estate: overcoming the challenges of fragmented sustainability standards

Virtual Panel Debate         

Sustainable Infrastructure Investing – how infrastructure investors are contributing to SDG outcomes: engaging the private sector in a green recovery- are investors in private infrastructure assets better able to meet climate targets and achieve risk return objectives?

• Examining Biden’s plans for climate change and green infrastructure- plans for a carbon free energy sector by 2035- energy efficient housing and increased access to electric vehicle charging points- will Biden have difficulty getting his plans through Congress? Do stranded assets present significant challenge? Many investment opportunities will arise from increased digitalization, green gas, electric vehicles (EVs), clean power, and other areas of innovation. However, companies must carefully manage these opportunities alongside challenges from stranded assets.
• Is it possible for most infrastructure investors to significantly increase their allocation to climate solutions and reduce exposure to carbon intensive companies?
• How can forward scenario risk planning assist infrastructure investors? Does it require a proactive rather than reactive approach?
• Biodiversity and infrastructure investing- how to mitigate and manage risk- the material impact of deforestation across portfolios and asset classes- how biodiversity can unlock gains in green infrastructure- protecting biodiversity ultimately leads to enhanced asset value
• Deforestation – a material risk for investors- reputational and legal risks (consumers, environmental organisations and climate related financial disclosure regulation)
• Accessing green bonds for sustainable infrastructure- how advanced is issuance in the region?
• Benefits of financing resilient infrastructure projects in emerging markets
• Do stranded assets present significant challenge when divesting for both asset owners and investors? How can current asset owners and future investors manage risk and realize opportunities?

Chair’s Welcome Remarks

Mark Barton, Forum Chair

Sustainable Investment Spotlight

Transforming finance for a sustainable, global economy- will capital market funding complement bank lending in sustainable financing in the aftermath of COVID-19?   

Financial markets need to expand access to capital markets to assist the transition to a low carbon global economy. Developing and expanding capital markets through transition bond frameworks and creating a global taxonomy for transition finance.

Climate Leader Insight

How can AI help ESG investing? How can sustainable investors capitalise upon AI to better measure ESG in their portfolios-

• AI lies at the crossroads of technology, innovation and sustainability. Though AI can mine key data for investors seeking sustainable investments, discerning unreliable information remains a key challenge- how can this be overcome? AI is a powerful tool useful for ESG investing as it reflects the growing sensitivity of consumers and is of increasing interest to responsible investors concerned about companies adopting practices that mitigate risk and ensure their long term sustainability. Investment managers are coming under increasing pressure to measure ESG criteria in their portfolios. AI technologies will mine and filter essential data that investors currently lack, coupled with enhancing investors’ abilities to analyse companies in general, AI enables companies to analyse all data and assist with ESG metric performance.

Virtual Panel Debate         

The role of Fintech in the transition towards a low carbon global economy—is accessing the right data the catalyst for sustainable investing at scale? Climate is a global problem and requires global solutions- a consolidated approach multi-layered with the right governance measures for AI is required to ensure equitable access to new tech.

• Examining how tech is aiding sustainable finance innovation and driving the global economic change. Tech lies at the heart of the attempts to prevent global warming, to increase energy efficiency, reduce consumption and expand renewables. Tech is not a panacea but must work in tandem with human judgement amplifying the effectiveness of ESG which with allow financial institutions to improve investors sustainable investment portfolios advising clients to align with SDGs. Accessibility to all is necessary to drive real change – whilst AI and ML are being embraced by greater numbers of institutions and governments and accelerating exponential growth in certain sectors of the global economy others may be left behind.
• Can AI assist in aligning resource intensive industries with environmental sustainability goals by uncovering patterns in overwhelmingly complex datasets?
• How innovative new technologies in electric vehicles and renewables can assist the transition to a low carbon economy?
• ESG Data- the backbone of sustainable investment decision making? How can Investors better understand and quantify risk and returns and measure impact of their portfolios?
• How can financial institutions ensure that AI will be deployed in a way that will drive improved or fairer outcomes for society and the environment?

Chair’s Welcome Remarks

Mark Barton, Forum Chair

Climate Leader Insight

From exclusion to inclusion- how to embed ESG data driven decision making to reduce volatility and create climate resilient portfolios

Virtual Panel Debate         

Financial reporting alignment with the G-20 backed Task Force on Climate Related Financial Disclosure (TCFD) and the benefits of robust climate risk stress testing- will the US Fed department lead the way in the region with a strong climate mandate?  Are there any political barriers which may impede the roll out?

• There has been significant work towards developing a common international corporate reporting standard for sustainability disclosures, building on the TCFD’s recommendations and the International Financial Reporting Standards (IFRS). Businesses across the North American region face significant risks from climate change, both in terms of increasing physical threats from storms, droughts, and rising sea levels, but also transition risks arising from stricter carbon mitigation policies. Improving climate disclosures enables investors to better allocate capital and enhances corporate focus on the risks – and opportunities – climate change will bring about. Conversely, failure to meet investor demands can threaten a company’s ability to raise finance while leaving it vulnerable to physical climate threats, slow to capitalise on opportunities, and potentially exposed to punitive action from regulators. The advent of the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) has provided a unifying framework to identify, manage, and detail those risks and opportunities around which other disclosure benchmarks are coalescing.
• Climate policy is politically contentious and congressional approval may be a difficult route- financial regulators such as the SEC has been ramping up its involvement in climate risk concurrently with the Federal Reserve.
• Canadian Pension Plan Investment Board recently overhauled its sustainability policy to urge companies to report in line with TCFD and SASB (Sustainable Accounting Standards Board) will this be enough to set the stage for rapid change in line for COP26 and address the reputational risks around the “S” in ESG both in Canada and abroad?
• Update on the latest SEC amendments to modernise and enhance climate financial disclosures- using TCFD implementation as a benchmark
• Examining the Canadian Pension Investment Board Sustainability policy- how does this compare with policies in the US?
• Climate disclosures: benefits of adopting TCFDs
• Accurately reporting climate impacts, risks and opportunities- the benefits of forward scenario planning
• Challenges of TCFD reporting across different asset classes
• Examining the alignment of physical climate risks with various reporting frameworks
• How useful is the TCFD framework for asset managers?
• Banking in sustainability – an update on the UNEP FI Principles for Responsible Banking -embedding TCFD and ESG into bank strategies.

Climate Leader Insight

Derivatives in sustainable finance: enabling the green transition

Greening the listed derivatives markets- challenges of ESG integration across investment portfolios: fixed income/ real estate/ equities.

• Both issuers and investors are looking to derivatives markets to hedge their exposure and product innovation is developing rapidly.
• The transition to a sustainable economy requires significant long-term funding. The financial services sector will be an essential partner in providing this funding and managing the risks associated with sustainable investments, including project risk, interest rate and currency risks.
• Derivatives markets can play an essential role in this process enabling more capital to be channelled towards sustainable investments; help market participants hedge risk related to environmental, social and governance (ESG) factors; facilitate transparency, price discovery and market efficiency; and contribute to long-termism.

Headline Partners Forum Closing Remarks

S&P Sustainable1