In this episode, we explore the likely impacts on asset owners’ climate and nature exposures of reforms to the Sustainable Finance Disclosure Regulation and developments at COP30; also looking forward to the next steps for natural capital accounting and universal ownership.

Risk, Return and Responsibility – the monthly podcast from Sustainable Investor - aims to provide institutional asset owners with news and views shaping both the sustainable investment landscape and our wider economic, environmental and social systems. In each episode, Chris Hall, Editorial Director of Sustainable Investor, will be joined by co-hosts to discuss the biggest recent stories, and to round up some you might have missed. We will also be conducting deeper interviews with influential asset owners and others on the practical challenges of balancing risk, return and responsibility. To wrap up each episode, we will look back at some of the bigger stories covered recently by Sustainable Investor, also looking forward to the most significant upcoming developments, again with expert input from our co-hosts. 

Co-hosts: Guy Opperman, the UK’s longest-serving Pensions Minister & Chair of Sustainable Investor's editorial board; and Hortense Bioy, Head of Sustainable Investing Research, Morningstar Sustainalytics. 

News round-up: Following the release of ‘SFDR 2.0’, Hortense estimates the assets likely to be captured by the new transition fund category and forecasts a potential boost to engagement efforts, while Guy argues that simplification in Brussels should be heeded in Belém and beyond to secure buy-in for essential climate policy shifts. Signs of a greater integration of nature and climate in policy and investment decisions at COP30 are dissected (and broadly welcomed), while the repositioning of the Net Zero Asset Managers initiative - now prioritising transparency, scenario analysis, and engagement frameworks over rigid commitments - are seen as posing challenges for asset owners (Hortense) while reducing legal risk (Guy). 

The Three Rs interview: Mark Gough, CEO of the Capitals Coalition, explains why asset owners should consider natural capital a core determinant of long-term value and shares his experiences and takeaways from COP30, outlining why he expects natural capital to be a bigger part of the policy conversation in future. He also highlights why he sees accounting standards as a critical tool for increasing the visibility of nature on the balance sheet. 

Review / Preview: Finally Guy and Hortense return to dig a little deeper into some recent reports from leading asset owners on the challenges and opportunities of universal ownership, and the pros and cons of a system-level approach to stewardship. Do asset owners have the resources and data to support their ambitions? What kinds of outcomes and interventions will justify this shift of emphasis away from company-focused engagement? 

Thanks for joining us: If you like what you hear, you can also subscribe to Sustainable Investor, subscribe to this podcast and find further information in the show notes, where you can also find our contact details.  We'd love to hear your ideas as we plan future episodes. 

Links to news items discussed: 

Greenwashing Risks Remain Under Europe’s SFDR 2.0

https://sustainableinvestor.online/live/greenwashing-risks-remain-under-europes-sfdr-2-0/

SFDR Expected to Introduce Dedicated Transition Funds

https://sustainableinvestor.online/qa-will-brussels-re-boot-transform-the-transition/

SFDR Challenges Increased by Omnibus Package

https://sustainableinvestor.online/live/omnibus-vote-throws-sfdr-review-into-doubt/

UN Climate Talks Fail to Secure New Fossil Fuel Promises

https://www.bbc.co.uk/news/articles/c75vn7yel73o

COP30 has Racked up an Impressive Scorecard of Real-world Climate Actions 

https://unfccc.int/news/cop30-has-racked-up-an-impressive-scorecard-of-real-world-climate-actions-that-will-also-mean

COP30 Approves Belem Package

https://cop30.br/en/news-about-cop30/cop30-approves-belem-package1#

NZAM: Ready for its Next Chapter

https://www.netzeroassetmanagers.org/nzam-ready-for-its-next-chapter/

NZAM Updates Signatory Requirements and Acknowledges “What has Always Been the Case”

https://www.ropesgray.com/en/insights/viewpoints/102lrmz/nzam-updates-signatory-requirements-and-acknowledges-what-has-always-been-the-ca

Net Zero Sometime: NZAM Scraps 2050 Target

https://www.netzeroinvestor.net/news-and-views/net-zero-sometime-nzam-scraps-2050-target

TFFF “an Arrow in the Quiver, not a Silver Bullet”

https://sustainableinvestor.online/tfff-an-arrow-in-the-quiver-not-a-silver-bullet/

MDBs’ New Approach to Financing Nature https://onestopesg.com/esg-news/mdbs-new-approach-to-financing-nature-1763521846737 ISSB to Lead on Nature Reporting, Plans COP17 Release https://sustainableinvestor.online/live/issb-to-lead-on-nature-reporting-plans-cop17-release/ New Sovereign Debt Nature Assessment Model Open for Consultation https://www.financeforbiodiversity.org/publications/new-sovereign-debt-nature-assessment-model-and-a-call-for-feedback/

Reaching $120 Billion in International Adaptation Finance Is Possible

https://www.wri.org/insights/tripling-adaptation-finance-goal

Universal Ownership: From Theory to Practice

https://sustainableinvestor.online/from-theory-to-practice/

What Does it Look Like for Asset Owners to Lead Right Now

https://issuu.com/wespath/docs/system_level_sustainability_opportunity_and_risk_1

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