ESG360 - The EU’s Social Taxonomy, Climate Risks and ESG in Ukraine
We discuss recent developments in the EU's social taxonomy, how financial firms are managing climate risk and the ESG implications in Ukraine
- The EU backed platform on sustainable finance published its final report on extending the EU taxonomy or classification to include social issues, encouraging new investment in socially beneficial enterprises.
- Banks need to start incorporating climate considerations for all the traditional risk types including market, credit, liquidity, and operational as well as evaluate physical/location risk.
- ESG concerns in Ukraine span across social issues including the humanitarian crisis, regional stability and government effectiveness to environmental risks from spikes in radiation and polluted water supplies.
In this episode of ESG360, we discuss the EU’s social taxonomy with Ella Chalfon, a managing director in Nomura’s Sustainable Finance team. The taxonomy gives the EU an opportunity to be a leader in determining what ‘good’ looks like on social issues while encouraging new investment in socially beneficial enterprises. It also provides a yardstick for investors to benchmark companies and hold them accountable on their social credentials.
Victoria Collins, Nomura’s Head of Climate Risk, talks about how financial firms are managing climate risks arising from extreme weather like the $1.5 billion in damage caused by recent deadly flooding in Australia and how they are treating so-called stranded assets like coal-fired power stations when demand plummets. We also touch on the ESG implications in Ukraine, including how investors with a social mandate can address the unfolding humanitarian crisis, and the escalating risks from political instability and a change in country ratings.
Listen to us on
Contributor
Ella Chalfon
Sustainability Management Officer
Victoria Collins
Head of Climate Risk
Disclaimer
This content has been prepared by Nomura solely for information purposes, and is not an offer to buy or sell or provide (as the case may be) or a solicitation of an offer to buy or sell or enter into any agreement with respect to any security, product, service (including but not limited to investment advisory services) or investment. The opinions expressed in the content do not constitute investment advice and independent advice should be sought where appropriate.The content contains general information only and does not take into account the individual objectives, financial situation or needs of a person. All information, opinions and estimates expressed in the content are current as of the date of publication, are subject to change without notice, and may become outdated over time. To the extent that any materials or investment services on or referred to in the content are construed to be regulated activities under the local laws of any jurisdiction and are made available to persons resident in such jurisdiction, they shall only be made available through appropriately licenced Nomura entities in that jurisdiction or otherwise through Nomura entities that are exempt from applicable licensing and regulatory requirements in that jurisdiction. For more information please go to https://www.nomuraholdings.com/policy/terms.html.