June 2024

Here are the top news, stories, observations and other interesting things we hear about in the market, relevant for selection teams and sustainable investing.

#1 Transitioning from Brown to Green: Best Practice & Case Studies Discussions in Stockholm – NordSIP

With the increasing urgency to move capital to enable the economy to transition from ‘brown to green’, investors are sometimes overwhelmed by the complexity of the task. The emergence and fast evolution of new technologies as well as the need to comprehend the trade-offs within entire value chains make the analysis of investment targets and the monitoring increasingly multifaceted and technical. In addition, for many incumbent businesses, transitioning towards new technologies also means phasing out older ‘browner’ activities that may still carry attractive short-term financial profits due to the present lack of emissions taxes.

Access the full Handbook here (source: NordSIP)

#2 Asset owners see climate as the driving force of ESG

Asset owners are increasingly incorporating ESG factors into their investment decisions, with climate emerging as a major focus, according to a soon-to-be-released survey by Morningstar Indexes and Sustainalytics. Over the last three years that Morningstar executives have conducted the two-phase research, climate has ascended as “the driving force of sustainable investments,” said Thomas Kuh, head of ESG strategy for Morningstar Indexes.

Read the full article here (source: Pension & Investments)

#3 Six Ways AI Will Change War and the World

Artificial intelligence will change our everyday lives in innumerable ways: how governments serve their citizens; how we drive (and get driven); how we handle and, we hope, protect our finances; how doctors diagnose and treat diseases; even how students research and write essays. But just how revolutionary will AI be? Will it upend the global balance of power? Will it allow autocracies to rule the world? Will it make warfare so fast and ferocious that it becomes uncontrollable? In short, will AI fundamentally alter the rhythms of world affairs?

Read the full article here (source: Bloomberg)