Refining The Rules: ESG Investing May Be In For A Shake-Up

C-MACC Weekly “CRETER” (Climate etc.)

Refining The Rules: ESG Investing May Be In For A Shake-Up

• With the expected roll-out of better ESG reporting standards and fund definitions, the high and rising amount of money in the space could cause upsets
• If large changes are required for funds to meet tighter definitions and/or stocks move from compliant to non-compliant, rotation and valuation swings are likely
• Already compliant investments will benefit relatively while non-compliant ones face difficulties – compliance and reporting costs will likely rise for all.
• This report also discusses carbon offset markets, concluding that current pricing is very adrift from costs, either the offsets are not real or they are underpriced. 
• Carbon capture announcements increase, but the money is still not there.

See PDF below for all charts