The mobilization of the European Commission around the UN’s 2030 agenda for sustainable development and the 17 Sustainable Development Goals (SDGs) has played a key role in driving increased interest and adoption of ESG (Environmental, Social and Governance ) analysis in the investment process. In 2018, the European Commission demonstrated its commitment to a low carbon future, releasing its Action Plan on Sustainable Finance. The Action Plan is a potential blueprint for a global standard for sustainable finance, laying the foundation for accelerating private capital flows toward sustainable economic activities.
While the Covid-19 outbreak creates some short-term headwinds for sustainability, it will strengthen the strategic importance of sustainable investments in many ways. Now, more than ever, the inclusion of ESG considerations into investment analysis and decision-making has gained considerable momentum.
With the political agreement on the EU Taxonomy Regulation reached and the publication of the EU Disclosure Regulation in the EU’s official journal back in December 2019, Europe is fast on track for substantially increased transparency in the financial sector. Over the course of this year, as consultations are being carried out and regulatory technical standards are being drafted, we will receive increasing clarity on what is being expected of financial market participants.
It is an ongoing, iterative process to find the right framework as well as tools for ESG analysis, integration and transparency. Challenges as well as opportunities are multifaceted. Brightlands Techruption – in collaboration with Maastricht University, BNY Mellon and APG – invites you to this joint virtual ESG ideation session. Using our ESG experts and digital client experience team, we want to offer a platform and facilitate a discussion to identify those exploration zones where a joint thought process – or even a jointly-developed solution – may deliver substantial value to all participants.
ESG Exploration Zones
In order to foster targeted discussions, we propose to identify concrete ESG exploration zones for the ESG ideation session beforehand. This will enable to group of participants to ideate effectively and identify concrete action items.
We propose the following potential exploration zones:
- Transparency challenges in the context of EU Taxonomy and EU Disclosure Regulation
- How to elicit the true social preferences of ultimate owners of pension funds and private banking clients
- Data visualization and how users respond to ESG information (depending on user type/country of origin (culture) etc.)
- AI tools to better identify risks that are currently not measured properly (e.g. satellite data on droughts, climate sensitive areas, pollution and matching this information to location data of corporate branches and their suppliers)
- Extending ESG measurement to non-equity investments.
- Challenges of ESG impact measurement
- Demonstration of tangible impact of an investment (portfolio).
- Impact measurement in the context of defining performance.
- Challenges around ESG intentionality and a suitable definition in the context of equity investments.
- Green bond selection in the context of the EU taxonomy Please share your preferences. Alternative suggestions will be very welcome. We will select the top three exploration zones based on the feedback of yourselves and your coparticipants.
The virtual ideation session will be organized online and is split between the morning and afternoon of 26 May, giving each one of you ample time to organize your family lunch in-between.
10:00 – 12:00: Understanding the ESG challenges
12:00 – 14:00: Break
14:00 – 16:30: Ideation, prioritization of ideas and next steps
The Deep Dive sessions are organized by Techruption and are intented to ignite collaborations in the Techruption cocreation program. If you are interested in joining the Techruption ideation session on the 3rd of June, please reach out to email@example.com. Also if you are not a Techruption member yet, please feel free to contact us and discuss the possible ways of collaboration.
We look forward to welcoming you to our virtual ESG Ideation Day.