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Combining AI and domain expertise to assess corporate climate transition disclosures

This paper introduces an assessment framework for corporate disclosures on climate transition strategies. It identifies 64 indicators from 28 frameworks, develops a natural language processing (NLP) tool to automate disclosure assessment, and analyses disclosures of carbon-intensive companies. The findings reveal that companies often prioritise reporting targets over concrete implementation actions.
Research
14 May 2024

How the oil industry has sustained market dominance through policy influence

InfluenceMap
The report details how the oil and gas industry has systematically opposed renewable energy and electric vehicles through a long-standing narrative playbook. This opposition has hindered the global energy transition, contributing significantly to continued high emissions and delaying critical climate action.
Research
10 July 2024

State of nature-related disclosures: Assessing TNFD alignment of nature-related disclosures by firms in high-risk sectors

First Sentier Investors
The report evaluates the alignment of firms' nature-related disclosures with the TNFD framework. It covers eight priority sectors, highlighting disclosure gaps and providing recommendations for improvement to ensure comprehensive, high-quality nature-related reporting.
Research
9 July 2024

Sustainable finance roadmap 2024

Australian Government
The Australian Government's 2024 Sustainable Finance Roadmap outlines a plan to mobilise private capital towards achieving net-zero emissions. It focuses on improving transparency in climate and sustainability reporting, enhancing financial system capabilities, and demonstrating government leadership. Key initiatives include mandatory climate-related financial disclosures, developing a sustainable finance taxonomy, and issuing sovereign green bonds.
Research
18 June 2024

Scaling up sustainable aviation fuel supply: Overcoming barriers in Europe, the US and the Middle East

World Economic Forum
The report explores the challenges and key actions needed to scale sustainable aviation fuel (SAF) production in these regions. It highlights technological advancements, regulatory frameworks, and strategic collaborations necessary to achieve 10% SAF by 2030 and sector decarbonisation by 2050. The report emphasises the importance of investments, policy support, and public awareness to drive the adoption of SAF globally.
Research
14 March 2024

Net Zero Investment Framework 2.0

Asia Investor Group on Climate Change (AIGCC)
The Net Zero Investment Framework (NZIF) 2.0, updated in June 2024, provides guidelines for investors to align their portfolios with the Paris Agreement goals. It includes detailed methodologies for various asset classes, governance, strategic asset allocation, and policy advocacy, focusing on achieving real economy emissions reductions through independent fiduciary decisions.
Research
22 June 2024

How corporate climate change mitigation actions affect the cost of capital

This study explores how corporate climate change mitigation actions influence the cost of capital for Japanese firms from 2017-2021. It finds that higher carbon intensity increases the cost of equity, debt, and overall capital. Climate-related disclosures lower the cost of equity and overall capital, despite raising debt costs.
Research
20 May 2024

Public to private divestment in Asia: trends and best practice

Anthropocene Fixed Income Institute
The database of Asian mergers and acquisitions (M&As) in high-emission sectors reveals a steady, not increasing, trend from 2020 to April 2024. This shift of high-emission assets from public to private ownership, totalling USD 5-9 billion annually, raises concerns about reduced transparency and accountability in emissions reporting. While not accelerating, this trend has negative implications for investor stewardship and emissions disclosure.
Research
21 May 2024

Big oil reality check: Aligned in failure

Oil Change International
Big oil and gas companies’ climate pledges lack ambition and integrity, resulting in continued exploration and extraction. They fail to align with the Paris Agreement, relying on misleading accounting and greenwashing. Immediate action from governments and investors is essential to catalyse a socially just and equitable phase-out of fossil fuels.
Research
21 May 2024

Climate TRACE

Climate TRACE is a comprehensive tool for tracking global greenhouse gas emissions. Utilising satellite data and AI, it provides real-time insights, helping finance professionals assess environmental impacts and make informed decisions. This tool supports ESG integration and sustainability in financial practices.
Online tool/database

Energy transition risks and opportunities initiative's series

European Commission
Energy Transition Risk and Opportunities Initiative (ET Risk) provides finance professionals with tools to assess energy transition risks and opportunities. The project focuses on sustainable finance, ESG impacts, and climate change, helping users make informed investment decisions.
Benchmark/series

UN Environment Programme's emissions gap report series

United Nations Environment Programme
This benchmark report, produced by the United Nations Environment Programme, assesses the discrepancy between projected and necessary global greenhouse gas emissions to meet the Paris Agreement targets. It highlights the urgent need for enhanced mitigation actions and tracks progress on national commitments and policy implementations.
Benchmark/series

Respecting Indigenous rights: An actionable due diligence toolkit for institutional investors

Amazon Watch
This toolkit offers practical guidance for investors to respect Indigenous rights. It covers understanding and incorporating these rights into investment policies, assessing and addressing impacts, and ensuring Free, Prior, and Informed Consent. This toolkit aims to mitigate risks and uphold international human rights standards.
Research
26 April 2023

Banking on climate chaos: Fossil fuel finance series

Rainforest Action Network
The "Banking on Climate Chaos" benchmark report examines global banks' financing of fossil fuel companies, highlighting trends and policy shifts impacting climate goals. This series offers critical insights into financial institutions' roles in supporting fossil fuel expansion and their climate commitments.

Benchmark/series

Australian material flow analysis to progress to a circular economy

CSIRO
This report provides a comprehensive material flow account for Australia in 2019 to support the assessment of its circular economy progress. The report highlights key areas where policy interventions can improve material intensity, resource efficiency, and waste minimisation. It also evaluates Australia's circularity indicators and performs well on three proposed indicators.
Research
5 March 2024

Getting ahead of the curve on dynamic materiality: How U.S. investors can foster more inclusive capitalism

Oxfam
This discussion paper highlights tools and opportunities for US investors to foster sustainable and responsible value creation in order to support more inclusive and thriving economy. It also discusses the risks posed to portfolios by social and environmental risks and how diversified investors can mitigate them.
Research
9 March 2024
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