🧭 September’s sustainability trends & register for the Emerald Summit

Hi there! 👋 

As we step into September, I want to take a moment to express my gratitude for your continued engagement with the BIG Risk Navigator. August was packed with insights—from Goldman Sachs' bold move on ESG initiatives to the launch of innovative climate finance tools.

Your feedback and involvement have been instrumental in shaping our discussions around sustainable finance and climate risk management. So if you like the Risk Navigator so far, feel free to forward this newsletter to other professionals you feel would benefit from it!

Looking ahead, there’s something you won't want to miss: the Wallet Max Emerald Summit is just two weeks away on September 20th! This event is a unique opportunity to connect with like-minded leaders committed to ESG and climate finance.

Seats are filling up fast, so make sure to secure your spot here.

Now, let’s dive into the latest updates shaping the world of sustainable finance and ESG.

• 60% of global investors reported higher performance yields by ESG investing: Sustainability Megatrends Report: The report by Cushman & Wakefield reveals seven key areas driving the integration of ESG across industries.

• Australia passes landmark bill mandating climate risk disclosures for companies: Starting in 2025, large Australian companies—both listed and unlisted—will be required to provide standardized climate information.

• 44% of German households ready for green investments but lack crucial information, KfW Survey: As Germany navigates its green transition, the role of private households as investors cannot be underestimated.

• SIX launches new flag to help identify Paris Agreement aligned equities: The ‘SIX 1.5 °C Climate Equity’ flag aims to assist investors in identifying companies aligning with the objectives of the Paris Agreement.

• ESG Book and Vyzrd link to revolutionize climate risk management: This collaboration merges ESG Book’s sustainability data with Vyzrd’s advanced analytics to offer solutions for climate risk management and ESG integration.

🎯 60% of global investors reported higher performance yields by ESG investing: Sustainability Megatrends Report

✅ Key Insights

• 60% of global investors report that ESG investing leads to higher performance yields, signaling the financial benefits of sustainability.

• 78% of investors are willing to pay higher fees for ESG funds, highlighting a growing demand for sustainable finance products.

• Sustainability-linked loans now account for 90% of global sustainable lending, driving corporate growth in green finance.

The “Sustainability Megatrends Report” by Cushman & Wakefield outlines seven key ESG trends shaping corporate sustainability. These include the rise in institutional investment in ESG, new building performance standards, mandatory ESG reporting, energy transition and decarbonization, green leases for tenant collaboration, digital transformation in enhancing ESG performance, and the need for climate risk assessment and mitigation.

Read more.

🎯 Australia passes landmark bill mandating climate risk disclosures for companies

✅ Key Insights

• New reporting standards require climate resilience assessments under both 1.5°C and 2.5°C warming scenarios.

• This dual-scenario reporting is crucial for companies to evaluate and align their existing climate risk strategies.

• Investors, including asset owners, must prepare for stricter climate reporting duties starting January 2025.

Australia’s Senate has passed the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024, setting the stage for a new era of mandatory climate risk disclosures. Starting in 2025, large Australian companies—both listed and unlisted—will be required to provide standardized climate information, a move welcomed by the investor community as a significant step toward transparency and accountability.

Read more.

🎯44% of German households ready for green investments but lack crucial information, KfW Survey

✅ Key Insights

• 14 % are already investing green, a further 30% can imagine doing so.

• 32% doubt the effectiveness of green investments, with 19% unsure about product details.

• Young adults (18-30) are three times more likely to invest in sustainable funds than those over 65.

Germany’s households hold a substantial role in financing the green transformation. According to KfW Research, 44% of households are either already investing in sustainable financial products (14%) or are open to doing so (30%) in the future. These products range from green bank accounts and savings deposits to sustainable funds, securities, and investments in renewable energy projects.

Read more.

🎯 SIX launches new flag to help identify Paris Agreement aligned equities

✅ Key Insights

• SIX 1.5 °C Climate Equity flag aids identifying companies meeting 1.5°C global warming target.

• To earn the flag, a company must provide SIX with a confirmation from an approved reviewer.

• The requirements for the confirmation consist of three assessments established according to climate science principles defined by IPCC.

SIX operates as a key player in the financial marketplace, specializing in providing a range of services including trading, clearing, settlement, and market data. The ‘SIX 1.5 °C Climate Equity’ flag aims to assist investors in identifying companies whose business models and future strategies align with the objectives of the Paris Agreement to limit global warming to 1.5°C above pre-industrial levels.

Read more.

🎯 ESG Book and Vyzrd link to revolutionize climate risk management

✅ Key Insights

• Partnership combines ESG Book’s extensive sustainability data with Vyzrd’s advanced analytics to improve ESG and climate risk assessments.

• Collaboration supports clients in meeting regulatory disclosures and developing value-centric net-zero strategies.

• The integration equips financial institutions and corporations with tools to quantify the financial impact of climate risks on enterprise valuation.

ESG Book, a global leader in sustainability data and technology, has announced a strategic partnership with Vyzrd, a prominent Climate Risk and ESG intelligence platform. This collaboration merges ESG Book’s robust sustainability data with Vyzrd’s advanced analytics to offer comprehensive solutions for climate risk management and ESG integration.

Read more.

3 ESG lessons CFOs can learn from SOX compliance

ESG reporting may be a relatively new challenge but there is nothing new about C-suite leaders facing “perfect storm” reporting requirements, Wolters Kluwer’s Alessio Lolli, vice president of corporate performance management in North America at CCH Tagetik, writes.

✅ Highlights 

• Reporting must be more than a check-the-box exercise

• Your initial ESG data may not paint a perfect picture

• Stay ahead of exponential change by leading with a digital-first mindset

Globally, 600 ESG standards are in play, and this number is growing. Alongside regulators and standard setters, we also see investors, analysts, customers, and employees are increasingly demanding reliable ESG data. CFOs have a lot riding on getting their ESG reporting right, and it’s clear that, even though the ESG reporting momentum may have slowed, it is a force here to stay.

Read more.

3A Composites’ LCA journey with Ecochain

✅ Highlights 

• 3A Composites’ Drive for LCA in a changing landscape

• Executing the comprehensive Portfolio Life Cycle Assessment

• Data collection from existing environmental management system

3A Composites is a specialist producer of premium plastic sheets, aluminum composite materials, and paper- and foam boards. Being a frontrunner in the market, 3A Composites is acutely attuned to the requirements of its customers. The company recognized a growing demand for environmental data, particularly regarding climate change impacts. To address this, 3A Composites opted for a comprehensive, portfolio-wide Life Cycle Assessment (LCA) using Ecochain Helix. The aim was to provide solid global warming impact information for their main products.

Read more.