Library | ESG issues
Climate Change
Climate change, driven by human-induced greenhouse gas (GHG) emissions, is increasing global temperatures and extreme weather events. Major GHGs like carbon dioxide and methane primarily come from burning fossil fuels, deforestation, and agriculture. Key sectors contributing to emissions include energy, industry, transport, buildings, and land use, making mitigation and adaptation essential for environmental and economic stability.
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Investor climate action plans series
This series provides guidance for investors on developing and assessing climate action plans using the ICAPs Expectations Ladder. It outlines approaches across investment, corporate engagement, policy advocacy, disclosure and governance to support alignment with net zero pathways and improve management of climate-related risks and opportunities.
Life, Climate Volatility, and What Comes After the Final No: Part 3—AFTER THE FINAL NO.
This final article in a three-part series explores how to navigate resistance to systemic change. Drawing on personal experience, it outlines a framework for resilience—building alliances, embracing interdisciplinary thinking, and storytelling—empowering leaders to persist through setbacks and turn persistent “no” into transformative, collective “yes.”
Life, Climate Volatility, and What Comes After the Final No: Part 2—CLIMATE VOLATILITY
This second article in a three-part series reframes climate change as volatility rather than warming. Drawing on finance and systems thinking, it explores how risk pricing, redesigned economic incentives, and nature-based solutions can build resilience, urging leaders to manage climate as the ultimate systemic risk.
Life, Climate Volatility, and What Comes After the Final No: Part 1 - LIFE
Written by Ken Coulson, a former global finance executive turned sustainability strategist, this first article in a three-part series explores humanity’s origins as a cosmic accident. It reframes Earth’s natural systems as a fragile inheritance under threat, urging a shift from extraction to stewardship through a unifying cosmic perspective on climate, responsibility, and systemic change.
Corporate climate governance
Examines how mandatory climate disclosure regimes reshape corporate governance by integrating climate risk into decision-making. Develops a spectrum from “thin” to “thick” governance, showing a shift towards stakeholder-oriented models, enhanced risk management, and long-term value optimisation, with implications for fiduciary duties and corporate strategy.
Climate-nature scenario development for financial risk assessment
This report develops integrated climate-nature scenarios for financial risk assessment, showing that combined climate and nature policies provide a fuller view of agricultural, biodiversity and ecosystem-service risks than separate approaches, with implications for central banks, supervisors and future stress-testing frameworks.
You Built This
This article argues that modern investment strategies fuel economic extraction while often underperforming simpler alternatives. It calls on investors to realign portfolios with productive, community-oriented investments that generate real economic and social value.
The circular economy: A 'triple play' solution for achieving China's climate objectives
The report argues that a circular economy can help China meet climate goals by cutting emissions in hard-to-abate sectors, securing critical materials for renewable energy, and improving climate resilience, while outlining policy actions on design, resource management, investment, measurement, and cross-sector collaboration.
Untapped potential: Asset owners and climate policy influence
Assesses major asset owners’ influence on climate policy, finding limited stewardship and advocacy despite significant potential. Most score poorly on climate lobbying oversight and transparency, with few aligning engagement to net zero goals. Highlights gaps in managing asset managers and industry associations, and calls for stronger, coordinated policy engagement.
How does climate risk affect global equity valuations? A novel approach
The report presents a probabilistic, state-dependent valuation framework for global equities under climate risk, finding that strong abatement could limit revaluation losses to 5–10%, while continued weak abatement could imply declines of around 40%, with tipping points worsening losses.
Australian financial institutions’ views on climate and clean energy opportunities in South and Southeast Asia
Assesses Australian financial institutions’ views on climate and clean energy investment in South and Southeast Asia, highlighting growth potential, limited current exposure, key risks, and barriers. It emphasises blended finance, policy support, and government intervention to mobilise private capital and scale regional investment.
The 12th national risk assessment: Property prices in Peril
First Street argues climate risk is reshaping US housing via higher insurance costs and climate-driven migration, with projected net residential property value losses of about US$1.2 trillion by 2055 and 84% of census tracts facing some negative valuation effects.
Incentivising climate action with executive remuneration in Australia
Provides a framework for linking climate goals to executive remuneration in Australia, emphasising alignment with credible transition strategies, measurable and sector-specific metrics, appropriate weighting, and transparent disclosure. Highlights growing adoption, implementation challenges, and guiding principles to improve investor engagement and incentive effectiveness.
Taking the lead on climate action and sustainable development: Recommendations for strategic national transition planning at the centre of a whole-of-system climate response
The report outlines principles for national transition planning to drive a coordinated, whole-of-economy shift to net zero. It proposes five pillars—strategy, implementation, engagement, metrics and governance—to align policy, mobilise finance, enhance accountability, and support sustainable development and climate resilience.
Sustainable and responsible investment for central banks
NGFS reports outline how central banks can integrate sustainable and responsible investment into corporate, sovereign and broader portfolio management, using climate metrics, risk and impact frameworks, governance arrangements and practical implementation guidance, while recognising data gaps, methodological limits and trade-offs with mandates and core investment objectives.
Breaking down silos: Navigating the intersection of environmental and social risks for investors
Examines how environmental and social risks interact to create compounding financial impacts for investors. Presents a systems-based framework and agrifood case study illustrating portfolio volatility, credit risk and supply disruptions. Recommends integrated risk assessment, value-chain finance, stewardship and blended finance to strengthen portfolio resilience.