Insights

Read about the latest insights on ESG in our blog section.
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SFDR, Double Materiality and Principal Adverse Impacts (PAI) Indicators

Sustainable Finance Disclosures Regulation (SFDR) is one of the three pillars of the European Union’s Action Plan on Sustainable Finance. Our first blog on SFDR provided an overview of the regulation (read here), and the classification of funds based on their sustainability objective (Article 6, 8 and 9 Funds). In this blog, we explore some of...

EU Taxonomy : A 3-Step Guide to Taxonomy-Aligned Reporting

One of the key objectives of the EU Sustainable Finance Action Plan is to improve transparency on the sustainability performance of corporates and to reduce avenues for “greenwashing“. Therefore, the EU Taxonomy describes the “environmentally sustainable” economic activities and the financial metrics to quantify the performance of these taxonomy-aligned economic activities. The Taxonomy Regulation requires...

Quantifying Climate Risks using CVaR, CTVaR and PCVaR

Quantifying risks and putting a risk management system in place are the bedrock of investments. However, while the risk assessment tools for traditional investments are reasonably mature, incorporating climate risks into investments is relatively new, and the tools for climate risk assessments are evolving. In this article, we explore three tools developed to quantify climate-related...

Dynamic, Nested and Core Materialities – Materiality Madness?

In February 2022, the Global Reporting Initiative (GRI) published a paper titled “The materiality madness: why definitions matter”. GRI’s corporate sustainability reporting standards, based on the concept of double materiality, are the most widely used worldwide. GRI’s key message in the paper was simple – don’t complicate the idea of materiality. As GRI put it,...