Leadership in adversity: Climate change, ESG and the finance industry
In the first stage of Finsia’s research for this policy initiative, a study of senior finance industry representatives engaged in environmental, social and governance (ESG) activities was conducted in 2008 by Finsia in association with Griffith University’s Sustainable Business Research Initiative. The preliminary findings were released on 19 May 2008, in the report Is the financial services industry ready for climate change? This report was used to inform Finsia’s workshop at the National Business Leaders Forum on Sustainable Development at Parliament House in Canberra.
In the second stage of this policy initiative, 10 focus groups were held based on the five industry sub sectors:
(1) Financial Planners; (2) Brokers & Sell-Side Analysts; (3) Fund Managers, Buy-Side Analysts & Asset Owners; (4) Investment Bankers & Venture Capitalists; and (5) Bankers & Lenders. The findings of these focus groups formed the basis of a report, The financial services industry beyond Kyoto: Capacity building for climate change. This report informed the joint Finsia-Institute of Actuaries of Australia Low carbon economy: risks and opportunities for the financial services industry event in 2008.
In conjunction with Griffith University Business School, Finsia launched the third and final stage results of the research project at the In the long grass – leadership in adversity conference held in Sydney on 7 May 2009. The associated report includes a projection of the potential impact of emissions pricing, reporting systems and opportunities for emission reduction on investment valuation, risk assessment and advisory services, and the identification of the research and delivery streams that will need to commence. The focus is on the capacity of financial services industry sub-groups to proactively incorporate these issues into their investment and advisory practices.