MSCI & 2°ii

Event details:

Time: Thursday, 14th November 15:15-17:00
Location: Excel Centre, Suite 1101- 1102A, No. 6 Wudinghou Street, Xicheng District, Beijing 100033

AGENDA

15:15 – 15:30 Coffee & Tea
15:30 – 16:10 Stanislas Dupré (Director) & Jakob Thomä (Program Manager China)
2° Investing Initiative

Presentation of the 2° Investing Initiative study “From financed emissions to long-term investing metrics: State-of-the-art review of GHG-emissions accounting for the financial sector”
16:10 – 16:30 Emily Chew (Senior ESG Analyst)
MSCI
Presentation “ESG-tools trends for institutional investors”
16:30 – 17:00 Discussion

About the speakers:

Stanislas Dupré. Stanislas initiated the 2° Investing Initiative and now serves as Director. Previously, he was executive director of Utopies (CSR consultancy) after a career as CSR consultant and R&D manager. In 2010 he wrote a book about the role of financial institutions in financing the energy transition. Stanislas is also non-executive director of a green private equity fund (NEF-CEM), lecturer at Paris-Dauphine University, member of NYSE-Euronext Low-Carbon Index’s and Novethic’s experts committees, and holds stakes in several specialized consultancy firms.

Jakob Thomä. Jakob is the Program Manager China for the 2° Investing Initiative in Beijing. He is co-author of the study on financed emissions methodologies and is currently managing the ’Greening financial regulation’ project for the 2° Investing Initiative. Jakob has previously done research projects with the World Food Programme, the Bank of England, and the Global Public Policy Institute. He has worked in Berlin, Istanbul, London, Beijing and Paris and is currently writing his Masters thesis parallel to his work at the Peking University on barriers to scaling green private investment in China.

Emily Chew. Emily is Senior Analyst with MSCI ESG Research in Beijing, China. She leads a team of specialist analysts that rate companies on environmental, social, and governance (ESG) metrics, overseeing ratings for 350+ Asian emerging market companies. She has advised some of the largest asset owners in the Asia-Pacific region on sustainability issues that are material to the investment process, and has co-authored several reports focused on ESG risks and opportunities in emerging markets, particularly China. Emily is also a Board member of the China Carbon Forum, a platform that facilitates knowledge-sharing and collaboration among some 1,400 climate change experts and professionals. She was previously a funds management lawyer with global law firm Baker & McKenzie. Emily earned an MBA from Oxford University as a Saïd Business School scholar, and holds Law and Arts degrees from Melbourne University.

About the topic:

The past several years have highlighted that the financial sector is still far removed from allocating capital in line with the 2° C climate goals. One of the main challenges in this regard is linking these goals with the risk and performance assessment of investment portfolios and financial regulatory frameworks. Benchmarking of financial portfolios relative to climate targets and creating a financial regulatory framework focused on impact both require the development and application of new metrics.
In recent years, the accounting of the environmental impact of investment portfolios has experienced a significant boost. Particularly ‘financed emissions’ methodologies have achieved increasing levels of sophistication. While these methodologies were largely non-existent in the early 2000s, the past ten years have seen the development of a range of methodologies and their pilot-testing. Equally, knowledge in this field remains dispersed and its practical application in driving investment decisions limited.

The topic has not only shown itself to be very complex but also contentious, with no consensus on – sometimes crucial – assumptions.
The workshop will discuss the state-of-the-art of current ‘financed emissions’ methodologies. In this, it brings together the insights of practitioners and provides the landscape of current practices for a broader audience. It highlights the historical development of metrics and the theoretical and practical arguments for accounting ‘financed emissions’. The review pinpoints the next steps towards achieving an investment environment in line with 2° investment roadmaps. The results provide the basis for the future work plan of the 2° Investing Initiative focused on the development of a cross-asset, impact-based climate performance indicator for investment portfolios and banks.