THIS MATERIAL IS A MARKETING COMMUNICATION.
ESG Monthly (March 2022)
This month’s highlights:
IPCC publishes the latest Assessment Report; ISSB releases draft sustainability disclosure standards;, HKEX signs MOU with CEEX to explore carbon finance, Insights on Net Zero assessment of Climate Action 100+ companies.
Commentary on ESG news and developments:
- The European Union Platform on Sustainable Finance proposed an extension to the existing Environmental taxonomy, proposing to include a new red category for harmful economic activities and an amber category for transitional activities (European Commission, March 2022).
- The Intergovernmental Panel on Climate Change (IPCC) published the third part of the Sixth Assessment Report, providing an updated global assessment of developments in emission reduction and mitigation efforts, and assessing the impact of national climate pledges in relation to long-term emissions goals (IPCC, April 2022).
- The International Sustainability Standards Board (ISSB) launched a consultation on its draft reporting standards for general sustainability-related and specific climate-related disclosures (IFRS, April 2022).
In Asian Pacific markets…
- Seven ASEAN listing exchanges, across six countries established environmental metrics recommended for disclosure by listed companies (The Business Times, March 2022).
- In Hong Kong, the Hong Kong Exchanges and Clearing Limited (HKEX) announced the signing of a Memorandum of Understanding (MOU) with the China Emissions Exchange (CEEX) to explore cooperation in developing a voluntary carbon emissions reduction programme in the Guangdong Hong Kong-Macao Greater Bay Area (HKEX, March 2022).
- In India, new corporate governance reporting rules for listed companies were made mandatory by the Securities and Exchange Board of India (SEBI) (The Economic Times, April 2022).
- In Taiwan, the National Development Council released its 2050 net-zero emissions roadmap, proposing five major decarbonisation areas: construction, transportation, industry, power and negative emissions technology. (Taiwan National Development Council, March 2022).
- In Indonesia, the rollout of its carbon tax is delayed from April to July this year due to global developments, such as inflation and the war in Ukraine (The Straits Times, March 2022).
ESG Insights from Mirae Asset:
How are Climate Action 100+ companies progressing in line with a Net Zero world?
- Climate Action 100+ released its second round of company assessments against its Net Zero Company Benchmark.
- Although the number of companies with net zero commitments continues to increase across all carbon-intensive sectors (more than 30% increase compared to last year), the actions and progress behind these commitments are not aligned with limiting global warming to 1.5°C.
- Most companies still do not include the more material emissions (for example Scope 3) in their commitments, nor do they have interim targets or explicitly commit to aligning future CAPEX with their long-term emissions reduction targets.
- Based on this assessment, Climate Action 100+ flagged a few companies’ shareholder proposals and votes for investors to take into consideration in the upcoming proxy seasons.
Source: Climate Action 100+, Mirae Asset, March 2022
Chart of the month: What are investors’ main motivations for sustainable investing?
Source: 2Degress Investing Initiative, 2020
April 29, 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.