Macquarie Group’s Post

As we reach the half-way point of 2024, Ric Deverell, Macquarie's Chief Economist and Head of Net Zero, discusses shifting the narrative surrounding the global economy from fragility to resilience. Watch now: https://macq.co/6047gw72X

We will not get to Net Zero if people think they are going to be poorer. This is what the 'Just Transition' is fundamentally all about - putting people at the centre of the changes the world needs to make. Success is going to need speed and scale and also empower communities as part of the solution rather than destroying them. (The deprivation caused by closing coal mines in the UK in the 80s remains today - we must learn from that as the thought of that on a much larger scale is unimaginable). The good news - renewable energy jobs now exceed fossil fuel jobs. We have an opportunity to end fuel poverty and stimulate growth in new ways. Finance knows there is an opportunity if it is part of the solution. The numbers speak for themselves. Great to be at the launch of the Just Transition Finance Lab launch last night at the The London School of Economics and Political Science (LSE). Very much liking the ethos of the lab - focused on experimentation and accelerating practical solutions, looking at: 👉 Financial instruments 👉 Metrics 👉 Real world case studies 👉 Policy reform. World Benchmarking Alliance look forward to contributing to these with the findings from our Financial System Benchmark this year, which includes the Just Transition in our assessments of 400 global financial institutions. This is complemented by our Just Transition Benchmark assessing high-emitting sectors. We appreciate the acknowledgement in the launch report, and well done on this kick-off launch report and the vision on the work ahead. There is an executive summary or the full report so it is accessible for all: 🤓 https://lnkd.in/emc7xVtP Thank you Elizabeth Robinson Nick Robins, Brendan Curran, Stephan Chambers, Sharan Burrow, Suranjali Tandon and Satwat Rehman and the rest of the LSE team for a great launch event. #justtransition #climatefinance #transitionfinance #lse #sdgs #leavenoonebehind  

Exciting to learn from Judy Cotte last week about climate reporting frameworks and how investors and companies are approaching them. We unpacked the "double" materiality of climate-related factors, the one as defined by the GRI to reach corporate stakeholders beyond the company's shareholders, and the other for the company's investors as it's defined under many securities laws, and to which the ISSB standards - and the TCFD and SASB frameworks upon which they're based - are aligned. Join us tomorrow, Monday October 30, for our final Dobson Climate Finance Speakers Series at University of Toronto - Rotman School of Management with Sandra Odendahl, Senior Vice President and Head, Sustainability, Diversity & Partnerships at BDC, who will discuss the crucial role #entrepreneurs play in Canada's future prosperity and how BDC can help. Learn more at https://lnkd.in/gVUHnStR or click https://lnkd.in/gcg8mt49 to register.

#NetZero Transition with Dr. Avinash Persaud: Rethinking #ClimateFinance and #EmbracingInclusive #Sustainable Solutions Dr. Avinash Persaud is an authority on Climate Finance with expertise in finance, policy, and academia. Formerly at GAM, State Street, J.P. Morgan, and UBS, he advises governments on financial policy. He chaired the UN and Warwick Commissions on financial reform, was a visiting scholar to the IMF and the European Central Bank, and is a speaker at several G20 convenings across the world. We recently engaged in a pivotal discussion on fast-tracking our transition to net-zero emissions, focusing on inclusivity. We explored innovative financial mechanisms to support fossil fuel-reliant regions and the key milestones towards Net Zero. Corporates' role in fostering an inclusive, climate-conscious future stood out prominently. Dr. Avinash Persaud emphasised a reimagined, ambitious, yet pragmatic finance system. With the global south's $2.4 trillion annual requirement for sustainable growth, he deconstructed the solution into three categories: 1️⃣ Primary Bucket: Projects like solar farms that generate revenue. The need? Amplifying private sector investments in developing countries. 2️⃣ Secondary Bucket: Initiatives, such as flood defences, that yield future savings. He urged MDBs to prioritise lending to climate-sensitive nations. 3️⃣ Tertiary Bucket: Addressing post-climatic event damages, demanding augmented grant funds, and innovative emission-centric taxes. We are grateful for Dr. Persaud's insights, which emphasises the collective effort required to preserve our planet. Meera Harish | Shrutee Ganguly #ClimateFinance #NetZeroFuture 🌍

To achieve its 2050 net-zero economy goal, Canada will need climate investments of about $125 billion to $140 billion annually, according to the SFAC’s 2022 Taxonomy Roadmap Report. A Canadian taxonomy will be a helpful tool in defining these investments. During our interviews with over 40 asset owners and managers with more than CA $5.8 trillion in AUM, many shared the need for a taxonomy - 36% of respondents indicating that in the absence of a national taxonomy, they have created or are creating their own to allocate capital to green and transition projects. Read the latest findings from 40+ institutional investors here: https://lnkd.in/guPedFp #esg #investing #taxonomy

Our CEO Catherine McCall will be a panelist at the upcoming Responsible Investor 2023 Canada Conference taking place October 17-18. The session, ‘Better together? Collective vs individual engagement', will cover key topics related to investor stewardship and engagement, including: • What are the strengths and weaknesses of the two approaches? • Progress on Climate Engagement Canada – will we see more national climate initiatives? • Effectiveness of Canadian Coalition for Good Governance’s board engagement program. • How do investors select which initiatives to join? • How are investors managing stewardship resources effectively to maximize impact? For more info on the event, agenda, and registration, visit: https://lnkd.in/eVbrMryH #responsibleinvestment #investorstewardship #goodgovernance

This is a topic I've been fascinated with, so I'm excited to be participating in this discussion next Tuesday with Nalini Feuilloley, Lauren Herzer Risi and Steve Mossop! #esg #sustainableinvesting #climatefinance

Outstanding discussion on transition risk moderated by Inevitable Policy Response’s Jakob Thomä with Fitch Ratings’s Monica Aggarwal, CFA, Principles for Responsible Investment’s Nathan Fabian Carbon Tracker’s Mike Coffin, Vivid Economics’ Jason Eis and Glasgow Financial Alliance for Net Zero (GFANZ)‘s Alex Michie on the path to #netzerotransition and implications for investors. #climateweeknyc

Thank you to Responsible Investor for another thought provoking event and to my panel colleagues Stephanie Chow, CPA, CA Kyra Bell-Pasht Richard Brooks for sharing their remarks. - Energy + food + shelter ('poverty trifecta') need to be prioritized while transition Capex continues to be deployed. It's hard to argue the economy is more resilient if people are cold, hungry, and sleepy. - Many climate change risks are uncompensated. The physical risk witnessed by the recent flooding led to GDP and earnings misses. Transition risk is a whole other story (compensated). Need proof? Chart Peabody vs Tesla before and after their transition strategy announcement. Divest with caution! - Investability matters. FI's will naturally gravitate towards attractive risk-return profiles. The wholesale mobilisation of balance sheets is dependent on many important steps: (1.) ramping up R&D (2.) de-risking technology (3.) building capacity - Taxonomies are very practical. They can allow FIs to colour their balance sheet and report their lending mix in manner that can be used as a proxy for future emissions trajectories. They can bridge the lag between the permitting, funding, construction phase of transition CapEx and the ensuing emissions benefit. Defining transition is easy. - Investing in a robust emissions inventory can help FI's demonstrate if they are 'on-pathway' or 'not-too-far-off'. NZBA commitments imply a ~ 3% annual reduction. With clients being under the purview of Canada's cap and trade system, chances are the work is being done for them. Without the compass, one can't even begin to know the direction of travel! A head of sustainable investing of a global asset manager during climate week stated bluntly: "Are we concerned if a company doesn't decarbonize every single year? No we are not. We are invested for the long term." - Solving for climate change is a classic prisoners dilemma. If nobody invests in the transition, everybody losses. If everybody invests in the transition, everybody wins. If someone cheats assuming others will do the work, but everybody applies the same playbook, we're back to square one. The Climate Aligned Financial Act (Bill S-243) tabled by senator Rosa Galvez and team is designed to enhance the resilience of the Canadian financial system and lead to more 'everybody wins' outcomes. #transitionfinance #taxonomies #emissionsinventory

In a recent The Guardian Labs article, Nick Bartlett, senior head, learning content at CFA Institute, discussed the ways in which the climate crisis is intersecting with finance and why the rapidly evolving landscape places a premium on expert professional qualifications, such as the CFA Institute Certificate in ESG Investing. Read the full article to learn more: https://bit.ly/3Y272qP #careerinsights #esginvesting #climatechange #futureoffinance