THIS MATERIAL IS A MARKETING COMMUNICATION.
ESG Monthly (April 2022)
This month’s highlights:
The EU publishes sustainability reporting standards; the US spends $3 billion on EVs; India faces heatwaves and power crisis; China proposes strict controls on e-cigarettes; Mirae Asset insights on life cycle environmental impacts of solar panels.
Commentary on ESG news and developments:
- In the European Union (EU), the European Financial Reporting Advisory Group (EFRAG) released its initial draft of European Sustainability Reporting Standards, setting out sustainability disclosure requirements for companies the upcoming Corporate Sustainable Reporting Directive (CSRD) (EFRAG, May 2022).
- In the United States (US), the US Department of Energy announced a plan of more than $3 billion to develop domestic battery production, supply chain development and recycling, in support of the Biden Administration’s goal to ramp up vehicle electrification (The New York Times, May 2022).
- In the United Kingdom (UK), the HM Treasury (HMT) formally launched a UK Transition Plan Taskforce (TPT) with the objective to develop a “gold standard” for climate transition plans for UK financial institutions and listed companies in the UK (Investment Week, April 2022).
In Asian Pacific markets…
- India, the northern states faced the hottest pre-summer months in decades, triggering record high electricity demand due to a surge in air-conditioning use, which in turn gave rise to the worst power crisis in more than six years (Alarabiya News, May 2022).
- India, the government evoked an emergency law to allow financially stressed idle power plants that are fired by imported coal to keep running in order to meet electricity demand (Reuters, May 2022).
- China, the State Tobacco Monopoly Administration issued draft rules to strictly control e-cigarette production, including the ban on foreign investment in the retail of e-cigarette products (Reuters, April 2022).
- Singapore, the Green Finance Industry Taskforce (GFIT) release detailed criteria and thresholds for economic activities in the energy, transport and real estate sectors to formulate the Green and Transition Taxonomy (Monetary Authority of Singapore, May 2022).
- Indonesia, the government announced a ban on palm oil exports, covering shipments of refined, bleached, deodorized (RBD) palm olein but not crude palm oil (ASEAN Briefing, April 2022).
ESG Insights from Mirae Asset:
What are the life cycle environmental impacts of solar panels?
- Solar will likely become the most important source of energy for electricity generation in the future globally.
- Thermal fuels like coal emit 25 times more carbon emissions compared to solar throughout their lifetime.
- The upstream of the solar supply chain consumes considerable energy for the manufacturing of solar panels.
- Our estimations suggest that for 1 GW of solar power, the energy generated is almost twice as much as that used to produce the associated solar panels.
- Studies suggest the energy required to create a solar panel can be recouped in less than 2 years.
Source: Mirae Asset Global Investments, April 2022
Chart of the month: Historical records of climate-related disasters and associated damages
Source: The Climate Action Tracker, EM-DAT, May 2022
May 31, 2022
Staying Ahead with Mirae Asset’s Latest Insights
Disclaimer & Information for Investors
No distribution, solicitation or advice: This document is provided for information and illustrative purposes and is intended for your use only. It is not a solicitation, offer or recommendation to buy or sell any security or other financial instrument. The information contained in this document has been provided as a general market commentary only and does not constitute any form of regulated financial advice, legal, tax or other regulated service.
The views and information discussed or referred in this document are as of the date of publication. Certain of the statements contained in this document are statements of future expectations and other forward-looking statements. Views, opinions and estimates may change without notice and are based on a number of assumptions which may or may not eventuate or prove to be accurate. Actual results, performance or events may differ materially from those in such statements. In addition, the opinions expressed may differ from those of other Mirae Asset Global Investments’ investment professionals.
Investment involves risk: Past performance is not indicative of future performance. It cannot be guaranteed that the performance of the Fund will generate a return and there may be circumstances where no return is generated or the amount invested is lost. It may not be suitable for persons unfamiliar with the underlying securities or who are unwilling or unable to bear the risk of loss and ownership of such investment. Before making any investment decision, investors should read the Prospectus for details and the risk factors. Investors should ensure they fully understand the risks associated with the Fund and should also consider their own investment objective and risk tolerance level. Investors are advised to seek independent professional advice before making any investment.
Sources: Information and opinions presented in this document have been obtained or derived from sources which in the opinion of Mirae Asset Global Investments (“MAGI”) are reliable, but we make no representation as to their accuracy or completeness. We accept no liability for a loss arising from the use of this document.
Products, services and information may not be available in your jurisdiction and may be offered by affiliates, subsidiaries and/or distributors of MAGI as stipulated by local laws and regulations. Please consult with your professional adviser for further information on the availability of products and services within your jurisdiction. This document is issued by Mirae Asset Global Investments (HK) Limited and has not been reviewed by the Securities and Futures Commission.
Information for EU investors pursuant to Regulation (EU) 2019/1156: This document is a marketing communication and is intended for Professional Investors only. A Prospectus is available for the Mirae Asset Global Discovery Fund (the “Company”) a société d'investissement à capital variable (SICAV) domiciled in Luxembourg structured as an umbrella with a number of sub-funds. Key Investor Information Documents (“KIIDs”) are available for each share class of each of the sub-funds of the Company.
The Company’s Prospectus and the KIIDs can be obtained from www.am.miraeasset.eu/fund-literature . The Prospectus is available in English, French, German, and Danish, while the KIIDs are available in one of the official languages of each of the EU Member States into which each sub-fund has been notified for marketing under the Directive 2009/65/EC (the “UCITS Directive”). Please refer to the Prospectus and the KIID before making any final investment decisions.
A summary of investor rights is available in English from www.am.miraeasset.eu/investor-rights-summary.
The sub-funds of the Company are currently notified for marketing into a number of EU Member States under the UCITS Directive. FundRock Management Company can terminate such notifications for any share class and/or sub-fund of the Company at any time using the process contained in Article 93a of the UCITS Directive.
Hong Kong: This document is intended for Hong Kong investors. Before making any investment decision to invest in the Fund, Investors should read the Fund’s Prospectus and the information for Hong Kong investors (of applicable) of the Fund for details and the risk factors. The individual and Mirae Asset Global Investments (Hong Kong) Limited may hold the individual securities mentioned. This document is issued by Mirae Asset Global Investments (HK) Limited and has not been reviewed by the Securities and Futures Commission.
Copyright 2023. All rights reserved. No part of this document may be reproduced in any form, or referred to in any other publication, without express written permission of Mirae Asset Global Investments (Hong Kong) Limited.