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Buy-side traders start to cool on ESG-deficient dealers
Managers adopting ESG metrics in counterparty evaluations may exclude dealers that aren’t up to scratch
Private companies ‘lack data transparency’
Investors held back over issues around data quality and availability
BlackRock’s 65% of AUM accounts for 1% of global emissions
Asset manager’s absolute emissions linked to corporate securities and real estate stood at 330.7 million tons of CO2e in 2020
Latest
Quotes
“If it's just used for engagement, I do not have a problem with it. The problem I do have is that these temperature scores are being used by our clients.”
Craig Mackenzie, head of strategic asset allocation at Aberdeen Standard Investments
“The game plan is to take an entrepreneur who might have 10 million or 15 million of Ebita today and institutionalise the company – bring in the audited financial statements, processes and procedures, controls and take their talent and grow that business.”
Art Penn, the founder and chief of PennantPark
“Implied temperature rise, although important, just is not ready today. We did a consultation on forward-looking metrics for the financial sector. And we received over 200 responses to that. We’ve heard, essentially, that these forward-looking metrics for the financial sector are important. But they’re still new. So there are still some data challenges. There is still variation in methodologies. And there are still things that financial institutions are working on internally.”
Mara Childress of the TCFD’s secretariat
Editor's Choice
BlackRock’s own reporting undermines its climate claims
Axa, Allianz and Legal & General have all cut their investments’ emissions, unlike BlackRock
Big Figure
Margin mayhem
Insurers and pension providers in the eurozone likely exacerbated the run on the region’s money market funds (MMFs) in March, as they withdrew cash en masse to cover huge margin calls on derivatives triggered by Covid-induced volatility. Researchers at the European Central Bank found a strong correlation between MMF inflows and outflows and the variation margin payments made to and from insurance corporations and pension funds related to their interest rate and currency derivatives.
Read the full articleRisk Management
Top 10 op risk losses for 2021 hog $15bn total
Despite more fraud and crypto crime, firms’ op risk losses fall in number and in volume. Data by ORX News
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Op risk data: DeFi-ant crypto hacker steals $610m
9/11: the colleagues we lost, and the years that followed
Our Take
China regulation: the path clears slowly
Systemic banks: black boxes on green issues