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🧭 Canada’s sustainable investment taxonomy & Japan’s ESG surge

🧭 Canada’s sustainable investment taxonomy & Japan’s ESG surge

Canada unveils a framework to guide green and transition investments, while Japan sees a rapid rise in ESG investments with over 300 companies joining the FTSE Blossom Index. Plus, insights on new EU regulations and renewable energy goals.

Bhuva Shakti
October 17, 2024 • Estimated Reading Time: 10 minutes

Hey there! 👋

Last week, we covered major developments in sustainability and tech, such as HSBC’s collaboration with Google Cloud to support climate tech startups, Marriott’s success in cutting food waste by 25% using AI, and Morgan Stanley’s ambitious 1GT fund aimed at reducing global carbon emissions.

At the BIG Risk Navigator, we keep you informed on the latest developments in sustainability, climate finance, and cutting-edge tech innovations. Our goal is to provide decision-makers with the insights they need to stay ahead of the curve in building resilient, forward-thinking businesses.

But first, community updates!

We’re excited to announce the wrap-up of the Emerald Summit, which brought together climate tech innovators and executive women leading the charge in sustainable business. Stay tuned for key takeaways and insights from the summit that will help you leverage climate tech and drive sustainable growth within your business.

Now let’s get into the news.

Canada to launch new sustainable investment taxonomy to drive net-zero progress: This taxonomy will provide a framework for identifying “green” and “transition” investments based on scientifically determined criteria.
Japan’s ESG investments surge as 311 companies join FTSE Blossom Japan Index: FTSE Russel Report: ESG investment in Japan is accelerating, driven by a mix of policy support and growing investor interest.
ESG Book partners with Zfolio to simplify financed emissions calculations: This collaboration aims to simplify and enhance the process of calculating financed emissions for financial institutions.
Morningstar Sustainalytics enhances ESG reporting tools to meet EU regulatory demands: Morningstar’s new data program aligns with CSRD, enhancing transparency and accountability for EU companies.
Greece aims for renewables to account for 82% of electricity generation by 2030: Greece has presented a revised national energy and climate plan that significantly raises its renewable energy targets.

🎯 Canada to launch new sustainable investment taxonomy to drive net-zero progress

✅ Key Insights

Canada’s new sustainable investment taxonomy will categorize “green” and “transition” investments aligned with net-zero by 2050 goals.
Priority sectors include electricity, transportation, buildings, and heavy industry, with clear pathways for decarbonization.
The taxonomy will serve as a voluntary guide for investors and financial institutions, promoting credible climate-related investments.

The Government of Canada is advancing a Made-in-Canada sustainable investment taxonomy aimed at accelerating progress toward net-zero emissions by 2050. This taxonomy will provide a framework for identifying “green” and “transition” investments based on scientifically determined criteria. The goal is to guide private capital into activities that align with limiting global temperature rise to 1.5°C above pre-industrial levels, as outlined in the Paris Agreement.

🎯 Japan’s ESG investments surge as 311 companies join FTSE Blossom Japan Index: FTSE Russel Report

✅ Key Insights

As of March 2024, 311 companies are included in the FTSE Blossom Japan Index, up from 255 in the previous year.
SGX FTSE Blossom Japan Futures reached a new daily average volume of US$13.8 million in June 2024, a 26% year-on-year increase.
Both the FTSE Blossom Japan Index and the FTSE Blossom Japan Sector Relative Index outperformed the broader market in Q2 2024.

ESG investment in Japan is accelerating, driven by a mix of policy support and growing investor interest. Public pension funds signing the Principles for Responsible Investment (PRI) and the expansion of the Nippon Individual Savings Account (NISA) are key factors supporting this growth. The latest report, labeled “Evolution of corporate ESG disclosure and expansion of ESG investment“, highlights the significant strides Japan is making in sustainable finance.

🎯 ESG Book partners with Zfolio to simplify financed emissions calculations

✅ Key Insights

Strategic collaboration combines ESG Book’s sustainability data with Zfolio’s platform to automate financed emissions calculations.
Clients can quickly calculate financed emissions across large portfolios, aligned with global regulatory standards.
Partnership addresses growing demand for accurate climate risk assessment in investment and lending decisions.

ESG Book, a leading provider of sustainability-related data on public and private companies, has announced a strategic partnership with Zfolio, the premier platform for managing financed emissions. This collaboration aims to simplify and enhance the process of calculating financed emissions for financial institutions.

🎯 Morningstar Sustainalytics enhances ESG reporting tools to meet EU regulatory demands

✅ Key Insights

Morningstar’s new data program aligns with CSRD, enhancing transparency and accountability for EU companies.
Provides a methodology to safeguard investors against greenwashing by ensuring fund names accurately reflect ESG commitments.
Updated tool helps investors and companies measure environmental sustainability, with over $500 billion in aligned capital investments reported

Morningstar Sustainalytics has announced significant updates to its suite of tools designed to assist investors and corporations with the evolving ESG regulatory landscape under the EU Sustainable Finance Action Plan. The enhancements include new research products and insights aimed at addressing compliance with the Corporate Sustainability Reporting Directive (CSRD), ESMA Fund Naming Rules, and the EU Taxonomy.

🎯 Greece aims for renewables to account for 82% of electricity generation by 2030

✅ Key Insights

Greece unveils an ambitious plan to increase renewable energy to 82% of electricity generation by 2030, up from the previous target of 66%.
An estimated €95 billion ($104 billion) in additional investment is needed by 2030 to achieve the new targets.
The plan aligns with the EU’s goal of cutting greenhouse gas emissions by at least 55% by 2030.

Greece has presented a revised national energy and climate plan that significantly raises its renewable energy targets, aiming for renewables to account for 82% of electricity generation by 2030. This is a substantial increase from the 66% target set in the 2019 plan. The updated proposal will be submitted to the European Commission for approval.

Europe’s Blue Hydrogen plans risk generating annual emissions on par with Denmark

Billed by the fossil fuel industry as a climate solution, dozens of planned blue hydrogen projects in Europe could consume more natural gas each year than France, and produce emissions on a par with Denmark, a DeSmog analysis has found.

✅ Highlights

Lack of data
Battle of perceptions
Methodology and assumptions

The industry has yet to provide the kind of comprehensive data needed to estimate how far any possible climate benefits from switching to blue hydrogen produced by the planned projects may offset the residual CO₂ emissions and methane leaks associated with making it. To begin to fill this gap, DeSmog teamed up with Christophe Coutanceau, a professor at the Institute of Chemistry of Poitiers: Materials and Natural Resources, and co-lead of a hydrogen working group at the French National Centre for Scientific Research, known by its French acronym CNRS.

How Edenred and ekko are making green finance a reality

✅ Highlights

Partnering up to shift the tide on climate change
Challenge
Solution and results

Edenred and ekko worked on a collaborative project to make green finance a reality by offering a payment platform that integrates sustainability features directly into everyday transactions and allows users to track their carbon footprint as they shop. Initiatives such as planting trees and eliminating ocean plastic are based on their spending via the ekko app, all supported by Edenred's payment technology; essentially enabling consumers to do their bit for the environment by using their debit cards.

Why does authenticity matter for startup leaders aspiring to grow global profits

This blog explains why authenticity in leadership is crucial for startups aiming to scale globally, especially in ESG-driven industries. Authentic leadership helps build trust and fosters a culture that aligns with sustainability goals.

https://www.bhuvas-impact.global/post/why-does-authenticity-matter-for-startup-leaders-aspiring-to-grow-global-profits

Respecting local culture is critical to build customer trust and expand business presence

This article highlights how businesses can integrate local cultural awareness into their operations, which is vital for gaining trust and enhancing the impact of ESG initiatives in different regions, particularly as seen with Japan's ESG investment growth.

https://www.bhuvas-impact.global/post/respecting-local-culture-is-critical-to-build-customer-trust-and-expand-business-presence

Women continue to remain under-represented in sustainability

This blog explores the ongoing challenge of gender representation in sustainability sectors, which aligns with the broader discussions around the global push for net-zero and sustainable investments like those happening in Canada and Japan.

https://www.bhuvas-impact.global/post/women-continue-to-remain-under-represented-in-sustainability

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