Sustainability Now

Investing for higher returns and lower risks through sustainability data is key. Discover how corporate governance can serve as a financial warning system and impact stock prices significantly. Learn the importance of evaluating toxic emissions in assessing operational efficiency within industries. As market dynamics change, the need for continuous research and adaptable investment strategies becomes clear. Enhance your investment approach by focusing on sustainability factors that optimize risk management.

What are climate scenarios? Can I do them myself, or do I need a supercomputer and an advanced degree to make them work? They are certainly important in this day and age, especially as once-in-a-lifetime destructive events seem to be becoming the norm. That’s why we decided to do an episode demystifying the whole process of climate scenario analysis. Luckily, our guest today, James Edwards, along with his co-authors, Nathan Faigle and Wenmin Li, wrote a practical guide on the topic called How can I use climate scenarios? A practical guide (link below). Thanks to their work, we were able to gather some useful tips on how even we, the humble listener, can conduct our very own climate scenario analysis. Enjoy!Report: https://www.msci-institute.com/insights/comment/how-can-i-use-climate-scenarios-a-practical-guide/Host: Mike Disabato, MSCI ESG ResearchGuest: James Edwards, MSCI Climate Risk Center

Fires continue to rage in Southern California, destroying homes and businesses and leaving thousands stranded. But Los Angeles and its surrounding areas are unfortunately not unique when it comes to wildfire risk. So where is the next fire likely to be? And what can investors do about it? We discuss on this week's episode of ESG now.Host: Mike Disabato, MSCI ESG ResearchGuest: Katie Towey,  MSCI Climate Risk Center

One of Australia's biggest casinos is in big trouble, plagued by money laundering investigations and a dwindling pool of domestic gamblers. We look at whether the rise of online gambling may make problems like these redundant in future, and what new risks investors may want to be on the lookout for. Host: Bentley Kaplan, MSCI ESG ResearchGuest: SK Kim, MSCI ESG Research

Explore the key sustainability and climate trends poised to shape 2025. Discover new investment opportunities in energy transition technologies and the evolving risks related to climate adaptation. Delve into the complex interplay between AI, data governance, and corporate practices as regulations tighten. Also, learn about the rise of majority voting in U.S. corporate governance and its implications for accountability. The demand for carbon credits is on the rise, signaling significant regulatory shifts ahead.

Faris Pleho, a key figure at MSCI and co-author of the groundbreaking CORSIA report, shares insights into the first price forecast for carbon credits in the airline industry. He discusses the looming demand-supply imbalance and how rising carbon credit prices could inflate ticket costs. The conversation also contrasts the pricing strategies of EasyJet and Emirates, highlighting their different approaches to managing environmental responsibilities. Faris warns of potential challenges ahead in the carbon credit landscape, stressing the need for proactive engagement by airlines.

What do market participants actually think is going to happen to their assets due to climate change? And when do they expect it? And do they think we will ever abandon fossil fuels? Well to answer those questions (and any others!), you need a survey. Luckily, we've got one! We've linked it below, and created a podcast episode about it. Enjoy!Link to the survey: https://www.msci-institute.com/wp-content/uploads/2024/11/MSI-Survey-Report-061124_2.pdfHost: Mike Disabato, MSCI ESG ResearchGuest: Russ Bowdrey, MSCI ESG Research

Energy-hungry data centers are the backbone of AI. And as big tech companies look to meet rising demand for AI capabilities, their emissions are ticking up. So, are net zero ambitions at risk? Or can they be saved by a decades-old energy source in a new guise?Host: Bentley Kaplan, MSCI ESG ResearchGuests: Yoon Young Chung & Mathew Lee, MSCI ESG Research

VW announced it would shut at least three of its German plants, axe tens of thousands of jobs and slash pay by 10%. This is notable because VW is the powerhouse of Germany which typically has been the EU’s industrial engine – meaning jobs, meaning unions, meaning political might. But this is more than a VW story. It is a story of how the energy transition – the transition from pollutive to non-pollutive forms of economic operations – is upending the global order of established industries. It is the story of the hard tradeoffs we have to make in our effort to cut carbon emissions.In this episode we explore that new world and what it means for the auto industry; an industry many countries and states rely on for their economic driver.Host: Mike Disabato, MSCI ESG ResearchGuest: Yu Ishihara, MSCI ESG Research

Juana Hernandez, an expert on carbon markets policy at MSCI, dives into the recent breakthrough in global carbon trading. She discusses the UN expert group's compromise that could resolve a decade of negotiations. The conversation emphasizes the critical need for carbon credit integrity to combat climate change and the role it plays in the Paris Agreement. Hernandez also highlights the relationship between voluntary and compliance carbon markets and the significance of establishing high-integrity benchmarks as the COP29 conference approaches.