> Keeran Beeharee, vice-president for ESG outreach and research at Moody’s, agreed that ESG investment does not necessarily help an investor create a low-carbon portfolio, or any other specific goal.
> “[There is a] perception that ESG assessments do something that they do not. ESG assessments are an aggregate product, their nature is that they are looking at a range of material factors, so drawing a correlation to one factor is always going to be difficult,” Beeharee said.
> “In 2015-16, post the SDGs [UN sustainable development goals] and COP21 [Paris Agreement], when people began to really focus on the issue of climate, they quickly realised that an ESG assessment is not going to be much use there and that they need the right tool for the right task. There are now more targeted tools available that look at just carbon intensity, for example,” he added.
Emission intensity includes CO2 (Carbon Intensity) and also Methane and other emissions.
> Keeran Beeharee, vice-president for ESG outreach and research at Moody’s, agreed that ESG investment does not necessarily help an investor create a low-carbon portfolio, or any other specific goal.
> “[There is a] perception that ESG assessments do something that they do not. ESG assessments are an aggregate product, their nature is that they are looking at a range of material factors, so drawing a correlation to one factor is always going to be difficult,” Beeharee said.
> “In 2015-16, post the SDGs [UN sustainable development goals] and COP21 [Paris Agreement], when people began to really focus on the issue of climate, they quickly realised that an ESG assessment is not going to be much use there and that they need the right tool for the right task. There are now more targeted tools available that look at just carbon intensity, for example,” he added.
Emission intensity includes CO2 (Carbon Intensity) and also Methane and other emissions.
Emission intensity: https://en.wikipedia.org/wiki/Emission_intensity
UN SDG Indicators 2023 revision (Goals, Targets, Indicators) https://unstats.un.org/sdgs/indicators/Global%20Indicator%20... ctrl-f "carbon", "emission", "methane"
> Goal 9. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
> 9.4.1 CO2 emission per unit of value added
> Goal 13. Take urgent action to combat climate change and its impacts
> 13.2.2 Total greenhouse gas emissions per year
SDG9 > "Target 9.4: Upgrade all industries and infrastructures for sustainability": https://en.wikipedia.org/wiki/Sustainable_Development_Goal_9...
SDG13 > "Target 13.2: Integrate climate change measures into policy and planning": https://en.wikipedia.org/wiki/Sustainable_Development_Goal_1...
How should ESG composite scores be updated to reflect Emission intensity (to include CO2, and CH4,) as a weighted factor?