The industry has seen step changes in data, understanding, approach and disclosures, which may lead you to reconsider your starting position. Investors are seeking more information about how climate is considered, and globally regulators are requiring more disclosure. If not already addressed, it’s time to upskill the whole investment and risk team to give them the tools to consider both risks and opportunity with regards to where climate exists in portfolios on an ongoing basis. Please find details on our training below. CPT available.
The SFC code allows firms to evaluate climate as being irrelevant but are you still able to justify that position given what we now know globally and the groundswell of interest in the topic? At the very least it is time to sit down with the team and reflect on your policy.
Please find training produced by Red Links and Cognitive GRC. Be informed. Get ahead. Turn knowledge into return.
Technical Update 2022 Summary of technical requirements.
Link to Course Catalog on IPI Catalog.
Contact info@cognitivegrc.com for corporate/bulk rates.
The training has been developed by Red Links, sustainability consultants, produced by Cognitive GRC and distributed on Inflection Point Intelligence on their education platform, offering CPT completion credit for those that require it.
It has been a year since the final deadline of compliance with the SFC’s revised Fund Manager Code of Conduct (FMCC) and many firms took the position that due to their limited exposure, investment style or strategy that climate would not be sufficiently material for them to take further action other than making such a reasoned determination and staying aware of general risks that exist. However, there has been many developments in the market, including a proliferation of data on climate being provided by many of the data service providers, as well as improved assimilation of that data into the evaluation of businesses and the launch of new investment products. (We have seen several developments in the data space through our participation with Regulation Asia’s technology awards and a significant increase in data availability and quality.)
While sustainability disclosure standards for listed companies are evolving in different ways in different geographies, and the fundamental disclosure principles are still under review (being whether disclosures should be per financial, impact or double materiality), under the revised FMCC in Hong Kong managers are still expected by both regulators and investors to consider the increasingly evident risks and opportunities that arise because of climate. Climate and our understanding of it is dynamic and is something that firms should be considering on an ongoing basis. An item may be considered immaterial one year, and then considered material the next, due to improvements in forecasting, more granular data being available and similar.
We are aware that internationally regulators are interested in what all firms are doing in this regard and at the very least we expect that it would be appropriate for firms to ensure that their investment team are properly informed so that they can monitor changing data sets, source the appropriate data and properly integrate evaluation of these risks and opportunities in their buy/hold/sell decisions.
To that end we have worked with Red Links, sustainability consultants, to produce training materials that will properly arm investment analysts and managers with appropriate knowledge to make that determination. The course will help investment teams better consider climate, will demonstrate commitment to complying with regulator climate governance (and disclosure) requirements and will help individuals meet their CPT targets. It will also prepare firms for any climate shock concerns that may have been overlooked.
Increasing allocations are going towards those firms that have incorporated climate and sustainability considerations into their portfolios. While only some investors seek impact returns only, investors want comfort on alpha generation based on the latest understanding of all appropriate risks and opportunities plus many now have a concern on the direct impacts to people and planet arising from their investments.
Our understanding of climate is changing all the time. Don’t miss out on the opportunity it presents to generate financial returns. Train your teams today.
Contact us at info@cognitivegrc.com for access to group rates or simply complete via Inflection Point Intelligence. Catalog.