Responsible and Sustainable Investing

THE PATH TO 2030

Ethical Investment Week, Climate Disclosure and COP 26

Ethical Investment Week

Did you know that this week is Ethical Investment Week?

Now in its 8th year, Ethical Investment Week aims to highlight and communicate the objectives and benefits of ethical investments. Ethical Investment Week is coordinated by the Ethical Advisers' Co-op, a group of leading experts and financial advisers. Whilst predominately an Australian-focussed organisation, the Co-op also has a strong New Zealand flavour, with Rodger Spiller, a long-time champion of ethical investing contributing. To learn more, please click HERE.

________________________

Climate Disclosure

The Taskforce for Climate Related Financial Disclosure (TCFD) was set up in 2015 by the UN Environment Programme to develop consistent climate-related financial risk disclosures for use by companies, banks, and investors in providing information to stakeholders.

In New Zealand, last week the Climate Related Disclosure Bill passed its third reading. In addition, the External Reporting Board (XRB) launched its consultation on the Governance and Risk Management sections of the proposed climate-related disclosure standard to be issued under the CRD Bill.

Importantly, New Zealand is now well advanced in being the first country globally to have a mandatory climate change disclosure regime. All Climate Related Entities will be impacted by the Climate Related Disclosure Bill (when enacted) including large listed companies, banks and insurers and managed fund issuers with funds under management in excess of $1 billion. The regime is expected to apply from the 2023 financial year.

Further information on the Bill and the XRB consultation is available on the MBIE website HERE.

______________________

COP 26

As you may be aware, COP 26 (Conference of Parties) will take place in Glasgow from 31 October to 12 November. This is the biggest and most important climate change conference since Paris in 2015 with 100 plus global leaders and over 25,000 people taking part.

Under the landmark Paris Agreement, countries agreed to holding global temperature increases to well below 2 degrees (above pre-industrial levels) whilst pursuing efforts to limit an increase to below 1.5 degrees. Countries agreed to non-binding targets to reduce or limit greenhouse gas emissions; these nationally determined contributions (NDCs) were inadequate to achieve such goals and Paris included a ratchet mechanism whereby countries would return with new and revised commitments every 5 years. COP 26 (which was due in 2020 but delayed for a year due to COVID-19) is when countries update their plans.

The Paris Agreement left the world on track for 3 degrees of warming; and despite revised pledges and the economic impact of COVID, global emissions remain off target (it is estimated that global emissions must reduce by around 7% per annum this decade to remain on track for warming of less than 2 degrees).

The objectives of the Glasgow Conference are:

Secure global net zero by mid-century and keep 1.5 degrees within reach
Adapt to protect communities and natural habitats
Mobilise finance
Work together to deliver

COP 26 is of course being widely covered by media; you can access the conference website HERE for more information.

I trust that this is of interest and feel free to touch base if you have any immediate questions.

Kind regards,

Matthew Mimms, The Investment Store Limited

Please note, any information expressed, or recommendation made in this webpage/blog and in the attached articles is in respect of a kind of financial advice product in general rather than a particular financial advice product (for example, an opinion about shares generally rather than shares of a particular company). Neither The Investment Store, nor any of its directors or employees gives any warranty as to the reliability, accuracy, suitability, or currency of the information contained in this blog. Nothing in this webpage/blog is, or should be deemed to constitute, financial, investment, taxation or other advice from the investment store or a recommendation from the Investment Store to purchase any product or service. The information provided in this communication is for discussion purposes only and should not be relied on in making an investment decision.

This e-mail contains links to other websites (Linked Websites). Those links are provided for convenience only and may not remain current or be maintained. The Investment Store is not responsible for the content or privacy practices associated with Linked Websites.

This communication (and attachment if applicable) is for New Zealand resident professional financial intermediaries and institutional investors only who are “wholesale clients” for the purposes of the Financial Markets Conduct Act 2013.

This e-mail may contain links to other websites (Linked Websites). Those links are provided for convenience only and may not remain current or be maintained. The Investment Store is not responsible for the content or privacy practices associated with Linked Websites.

Unsolicited Electronic Messages Act 2007 Should you wish to no longer receive regular email communication from The Investment Store Limited, please advise us at info@theinvestmentstore.co.nz and type UNSUBSCRIBE in the title of your reply email.

WARNING This e-mail contains information which is CONFIDENTIAL and may be subject to LEGAL PRIVILEGE. If you are not the intended recipient, you must not peruse, use, disseminate, distribute or copy the e-mail or attachments. If you have received this in error, please notify us immediately by return e-mail, facsimile, or telephone.

IMPORTANT INFORMATION: The Investment Store's directors and employees are not permitted to provide investment or taxation advice and any financial advice is only provided to wholesale clients. Accordingly, The Investment Store is not required to obtain market services licence under the Financial Markets Conduct Act 2013, nor be a member of a dispute resolution scheme under the Financial Service Providers (Registration and Dispute Resolution) Act 2008. Any investment product information issued with this communication (or its attachments) is being transmitted from the issuer of the investment products referred to. Neither The Investment Store, nor any of its directors or employees, give any warranty as to the reliability, accuracy, suitability or currency of the information in this communication. Nothing contained in this communication is, or shall be deemed to constitute, financial, investment, taxation or other advice from The Investment Store or a recommendation from The Investment Store to purchase any product or service. The information provided in this communication is for discussion purposes only and should not be relied on in making investment decisions. Investment decisions are very important. They often have long-term consequences. You should seek professional advice before committing yourself to any investment. To the maximum extent permitted by law, neither The Investment Store nor its directors or employees will have any liability for any loss or damage, however caused (including through negligence), arising in connection with your use of, or reliance on information contained in, this communication. The Investment Store is registered on the Financial Service Providers Register (see www.business.govt.nz/fsp).