Month: August 2023

The rise of ESG investing has caused a paradigm shift in the industry. Standardization and data automation will play an integral role in ESG reporting, thus driving transparency and informed decision-making.

Interest in ESG (environmental, social, governance) investing is continuing to reach new heights. While a focus on ESG has been prevalent for some time now, this surge in interest has been fueled by Canada’s commitment to achieving net-zero emissions by 2050 and an increasing number of stakeholders who expect ESG considerations be integrated into their investment programs. As a result, sustainable investments among large Canadian pensions, spurred on by growing climate concerns and social and governance issues observed globally, went from $163 billion to $276 billion in one year.1 More importantly, the awareness of the potential impact that ESG can have on sustainable risk-adjusted returns is why plan sponsors and plan members have increasingly focused their attention on ESG investing.

As the level of ESG investing has increased, the need for better, more consistent and transparent disclosure standards and regulatory frameworks has also accelerated. With that comes the necessity for higher quality data and the ability to pull together disparate data sets for investor and regulatory reporting.

Net-Zero Commitments

In response to growing concerns about climate change, the Government of Canada made a commitment to achieve net-zero emissions by 2050.2 Following the government’s commitment, several pension funds accepted the challenge. In just one year, the number of funds making public net-zero portfolio emission commitments by 2050 or sooner grew from two to nine funds.3 These commitments demonstrate the increased recognition among pension funds of the importance of implementing sustainability measures.

In an effort to reach net-zero emissions, companies are turning to carbon credits. These credits are used to offset emissions and allow the owner to emit a certain amount of carbon dioxide (CO2) or greenhouse gases. The voluntary carbon-offset market is rapidly evolving and is expected to grow to around $250 billion by 2050 from only $2 billion in 2020.4 While these credits are intended to help companies meet their climate goals, it is imperative to ensure the quality and transparency of them in order to achieve genuine emission reductions and to avoid greenwashing. Greenwashing involves making an unsubstantiated claim to deceive consumers into believing that a company’s products are environmentally friendly or have a greater positive environmental impact than they actually do.

ESG Standardization Efforts

Canada is taking meaningful steps toward increased standardization. Canada’s 2022 budget addressed the federal government moving towards mandatory reporting of climate-related financial risks based on the international Task Force on Climate-related Financial Disclosures (TCFD) framework.5 This will require financial institutions to publish climate disclosures that align with the TCFD framework beginning in 2024, using a phased approach. The government will also be moving forward with ESG disclosure requirements for federally regulated pension plans. In addition to these new requirements, the Taxonomy Roadmap Report was developed by the Sustainable Finance Action Council. The report contains ten recommendations that address the merits, design and implementation of a green and transition finance taxonomy for Canada.6 Taxonomies can provide better standardization for benchmarking economic initiatives that align with domestic and global climate goals. A sustainable taxonomy has the potential to significantly improve ESG standardization industry wide.

While the government has recently taken steps toward ESG standardization, this comes about two years after the CEOs of Canada’s eight leading pension plan managers signed a statement emphasizing the importance of a more complete and consistent disclosure on ESG practices from investors and corporations.7 Pension plans have been leading the effort on industry standardization and have released yet another joint statement in June 2023. This time, eleven CEOs of Canada’s largest pension fund investors issued a statement supporting the International Sustainability Standards Board’s (ISSB) new reporting standards.8 The statement suggests companies in which they invest and those seeking their capital should consider these standards as they will become an increasingly important factor when making investment decisions. Additionally, the Canadian Association of Pension Supervisory Authorities (CAPSA) developed their own Guideline for pensions to follow. This Guideline provides guidance around ESG considerations in pension plan management and is intended to support plan administrators who are considering ESG factors that may be financially relevant to their plan’s investments.9

While there is a burgeoning interest in environmental initiatives, social considerations are just as important too. The Canadian Securities Administrators (CSA) recently proposed changes to corporate governance disclosure rules that would increase transparency surrounding diversity on boards and in executive officer positions.10 The proposed changes are intended to provide investors with more detailed information, allowing them to better understand the connection between diversity and an issuer’s strategic decisions.

Clearer Vision

Implementing regulatory standards is likely the most effective way to see real change from a responsible investing standpoint. As the TCFD disclosure framework, taxonomies and CAPSA and CSA guidelines get adopted, pension funds will benefit from having a clearer vision of what securities are a fit for their portfolios and ESG goals. While the depth and scope of future ESG legislation is still to be determined, the continued discussions and emphasis on the topic, along with the growing level of investment, indicate ESG considerations are undoubtedly top of mind for regulators.

ESG and Data Automation

Consistent disclosure on ESG practices by Canadian investors and corporations is a significant improvement, but it will come with further reporting requirements for plan sponsors. Institutions will need data to support their governance and oversight objectives – for example, providing evidence of their ESG scores and exposures and supporting adherence to regulatory requirements and global standards. With no standardization of ESG data or shared industry standards for analysis and reporting, this may seem like a daunting future. Fortunately, digital innovation is transforming the investment landscape and advances in data automation will be key to managing and analyzing ESG data. Next generation analytic tools can help asset owners that manage their own portfolios to complete idea generation, research management, portfolio construction, and risk management. For example, investors can include ESG as an input factor in the decision process and simulate portfolio impact across various metrics. They can perform ESG materiality assessments over time by decomposing the relevant pillars specific to each investment’s industry.

ESG data management is both a challenge and an opportunity for pension funds. As ESG standards continue to evolve, plan sponsors will need fundamental and diligent analysis at every level, including investment processes, compliance practices, organizational design and governance and reporting. With transparency and accountability as the foundations of ESG investing, it is paramount that sponsors demonstrate that their investments are in fact green and not greenwashed. Learning how to put data to work and relying on tools like data science to enable decisions and to communicate those decisions to stakeholders will be key.

Turning to Service Partners for Data Insights

As plan sponsors establish and refine their ESG policies, they will want to seek out service partners with advanced data analytics and reporting capabilities to provide the insight needed to evaluate their portfolios. Service partners should also be able to report how closely a portfolio is complying to a firm’s ESG goals via benchmarking and scoring.

As pension plans continue to drive ESG investing and as the regulatory framework becomes standardized, they will want to be sure to have access to data that meets their needs and the tools to help them maximize their information. Evaluating the right resources and partners to support their investment decisions will help them as the future evolves.

1 Canadian-Pensions-Dashboard-for-Responsible-Investing-2nd-Edition.pdf (corporateknights.com)
2 Net-Zero Emissions by 2050 – Canada.ca
3 Canadian-Pensions-Dashboard-for-Responsible-Investing-2nd-Edition.pdf (corporateknights.com)
4 Carbon Offset Market Trends and Growth: 2050 | Morgan Stanley
5 budget-2022-en.pdf
6 Taxonomy Roadmap Report: Advice and Recommendations (publications.gc.ca)
7 Top Canada Pension Funds Ask for Better ESG Disclosure – Bloomberg
8 Factiva Newsletter
9 1914 (capsa-acor.org)
10 Canadian securities regulators propose changes to corporate governance disclosure practices and guidelines – Canadian Securities Administrators (securities-administrators.ca)

ST. PAUL, Minn., August 2, 2023 /3BL/ – Antea Group is proud to announce our contribution to “Corporate Guide: Accelerating your ESG Transition” published by Environment Analyst.

Organizations of all shapes, sizes and industries must integrate ESG into their business, to secure financial investment, minimize risk and future-proof their long-term success. To help organizations navigate the growing complexities of ESG regulatory disclosure requirements, ever-changing standards and mounting stakeholder pressures, Environment Analyst and other industry experts collaborated to develop this free comprehensive guide.

Written by subject experts with longstanding records of helping businesses and governments measure, report and make progress on ESG goals, the guide includes chapters on:

Addressing the scope three challengeThe importance of credible stretch targetsPreparing for TNFD and nature-based reportingLegislative risk monitorSupercharging the ‘S’ in ESG to support a just and equitable transitionMoving to meaningful progress in ESG impactIntegrating and operationalizing your net zero strategy

Antea Group authored the “Legislative Risk Monitor” chapter, offering an overview of recent and upcoming legislative changes, such as the EU Corporate Sustainability Reporting Directive (CSRD), EU Corporate Sustainability Due Diligence Directive (CSDD), German Supply Chain Due Diligence Act (LkSG), and the US Securities and Exchange Commission (SEC) Proposed Rule to Enhance and Standardize Climate-Related Disclosures.

Download the Guide Here

About Environment Analyst 

Environment Analyst is an international membership community for the environmental services space, built around their market intelligence service. Their analysts help customers examine market opportunities in the environmental sector. They bring together business leaders and practitioners in peer-to-peer networks and share news and insight with member companies.

Their mission is to connect the environmental, ESG and professional services community, and provide the intelligence to deliver a sustainable transition. They aim to be the leading global partner supporting the environmental, sustainability & ESG community in its ambition to shape a better future.

About Antea Group 

Antea®Group is an environment, health, safety, and sustainability consulting firm. By combining strategic thinking with technical expertise, we do more than effectively solve client challenges; we deliver sustainable results for a better future. We work in partnership with and advise many of the world’s most sustainable companies to address ESG-business challenges in a way that fits their pace and unique objectives. Our consultants equip organizations to better understand threats, capture opportunities and find their position of strength. Lastly, we maintain a global perspective on ESG issues through not only our work with multinational clients, but also through our sister organizations in Europe, Asia, and Latin America and as a founding member of the  Inogen Alliance.

FOSTER CITY, Calif., August 2, 2023 /3BL/ – Gilead Sciences Inc. (Nasdaq: GILD) announced its largest commitment to health equity for Australian and Canadian Indigenous communities. The initiative will support programs addressing societal barriers to care that persistently contribute to the transmission of HIV and viral hepatitis within Indigenous communities.

Gilead is in discussions with two Indigenous-led organizations, the Lowitja Institute in Australia and CAAN Communities, Alliances & Networks in Canada, to create the new $6 million USD grant program, with funding divided equally between the two countries and invested over three years. The grant program will provide financial support to frontline organizations and initiatives.

This program is a targeted effort to help address the disparities in health outcomes impacting Indigenous communities, resulting from the ongoing effects of colonialization in each country. In comparison to non-Indigenous people in each country, Indigenous Peoples in Australia and Canada experience a higher incidence of HIV and viral hepatitis infections and increased barriers to diagnosis and treatment.i, ii

“We recognize that the Indigenous communities in both Australia and Canada have unique healthcare needs,” said Alex Kalomparis, Senior Vice President, Public Affairs, Gilead Sciences. “Gilead’s new funding program will help promote engagement in HIV and viral hepatitis care by supporting culturally appropriate solutions that address these needs, while enabling Indigenous people to continue advocating for the care of their communities.”

By listening to and working with Indigenous-led organizations, Gilead believes this commitment can translate to meaningful support of innovative and culturally appropriate projects that address the disproportionate rate of HIV and viral hepatitis in Indigenous communities.

Gilead’s funding commitment underscores the company’s unique efforts to increase health equity and help end the HIV epidemic globally through robust community partnerships and philanthropy. In 2022 alone, the Gilead Foundation and Gilead Corporate Giving donated a combined nearly $300 million globally. Other corporate giving programs include Zeroing In® the Gilead COMPASS Initiative® and RADIAN®.

More information on the program will be announced in the coming weeks in both Australia and Canada.

About Gilead Sciences

Gilead Sciences, Inc. is a biopharmaceutical company that has pursued and achieved breakthroughs in medicine for more than three decades, with the goal of creating a healthier world for all people. The company is committed to advancing innovative medicines to prevent and treat life-threatening diseases, including HIV, viral hepatitis, COVID-19 and cancer. Gilead operates in more than 35 countries worldwide, with headquarters in Foster City, California.

About Lowitja Institute

Lowitja Institute is Australia’s only national Aboriginal and Torres Strait Islander community-controlled health research institute named in honor of its Patron, Dr Lowitja O’Donoghue AC CBE DSG. It is an Aboriginal and Torres Strait Islander community-controlled organization working for the health and wellbeing of Australia’s First Peoples through high impact quality research, knowledge exchange, and by supporting a new generation of Aboriginal and Torres Strait Islander health researchers. For more information, visit https://www.lowitja.org.au/.

About CAAN

CAAN is a national, Indigenous organization who is leading the response to HIV and AIDS through empowerment, education and community. CAAN provides a forum for Indigenous peoples across Canada to (w)holistically address health issues, with a particular focus on HIV, hepatitis C (HCV), sexually transmitted blood-borne infections (STBBIs), and tuberculosis (TB). CAAN produces culturally relevant resources to assist and empower Indigenous peoples in preventing infectious disease through Indigenous Ways of Knowing and Doing (IWKD); respecting the diverse Indigenous peoples of our lands, acknowledging differences and accentuating unity and strength in a spirit of wholeness, healing, and cultural safety. For more information, visit https://caan.ca/.

Gilead, the Gilead logo and the Creating Possible tagline are registered trademarks of Gilead Sciences, Inc., or its related companies.

For more information about Gilead, please visit the company’s website at www.gilead.com, follow Gilead on Twitter (@Gilead Sciences) or call Gilead Public Affairs at 1-800-GILEAD-5 or 1-650-574-3000.

i Ward et al. 2021. HIV infection in Aboriginal and Torres Strait Islander people. HIV Management in Australasia a guide to clinical care. ASHM. Available at: https://hivmanagement.ashm.org.au/hiv-infection-in-aboriginal-and-torres-strait-islander-people/ Accessed June 2023 
ii CAAN. 2018. Documenting Lessons Learned and Measuring Progress Towards Global HIV, Tuberculosis, Viral Hepatitis, and Sexually Transmitted Infection Targets in Indigenous Communities.

Originally published by Gilead Sciences