Weekly Roundup #3 - Water Pollution, Green New Deal & COVID-19 Worker Safety
An ME Bank ESG controversy occurs in the same week that more Royal Commission legislation delayed - reducing the pressure on banks or weak decision?
Hi there, Every Sunday I’m putting together this brief roundup of things I’ve been reading, videos and podcasts. I'll write longer pieces on weekdays. Please provide any feedback you have in the comments or on Twitter. Cheers, Brennan
Chart of the Week
The CDP Global Water Report notes insufficient action on water pollution. Below are major risk drivers related to water pollution by sector. Note the risk of declining water quality in “biotech, health care & pharma”. Pollution incident risk is highest in “mineral extraction”.
Quote Of The Week
Absent the sudden emergence of a robust testing-and-tracing regime, or effective COVID-19 treatment, or a coronavirus vaccine, the “reopening of the economy” is likely to produce a new wave of infections — and thus, a durable dearth of consumer demand for in-person business and services.
Source: NY Mag
Article Of The Week
Understanding climate politics in the United States can help understand climate politics in Australia. Given how carefully companies have to manage political and regulatory requirements, many won’t change how they do business or produce reporting beyond the bare minimum until they are compelled to do so.
This article in the New York Times looks at how the economic consequences of drastic public health measures are being unfairly conflated with possible impacts from a “Green New Deal”.
Over the past two months, Republican lawmakers, the Trump campaign and conservative outlets have hammered the themes that Democrats are more interested in climate change than reviving the economy, that Mr. Biden and environmental groups are seeking to exploit the pandemic to push a “radical” green agenda, and that the economic fallout of Covid-19 is a preview of life under ambitious climate change policies.
They have also labeled virtually every climate change effort as part of the Green New Deal — an ambitious plan championed by Representative Alexandria Ocasio-Cortez of New York and Senator Bernie Sanders of Vermont, both democratic socialists — whether they are part of the proposal or not. The Green New Deal, which Mr. Biden has loosely embraced, envisions powering all transportation and generating all electricity from renewable sources by 2030.
Quick Clicks
Flexible working is part of responsible “human capital” management
Signing up to the UN PRI doesn’t necessarily improve ESG outcomes
100+ common sense environmental rules rolled back in the US
Employment down, stock market up from NY Mag
Which asset manager has the most effective ESG communications?
ME Bank, owned by industry super funds, has an ESG shocker and reverses changes to customer mortgage redraw limits
Business funded think tank Energy Transitions Commission released a COVID-19 recovery plan including a carbon tax
As above, the CDP Global Water Report notes insufficient action on water pollution
Our analysis shows that less than half of the disclosing companies regularly measure and monitor their water discharges, and only 12% have set a pollution reduction target and/or goal. We found that many companies underestimate the associated risks of water pollution, with only 10% reporting it a top risk.
There is not enough freshwater to meet global needs, and 80% of wastewater is still released untreated. Nearly half the rivers in the USA are unfit for swimming, fishing, and drinking; a third of those in Latin America, Africa, and Asia are affected by severe pathogen pollution; and almost 60% of Europe’s surface water is polluted.
Worker Safety Risk During COVID-19
As COVID-19 restrictions ease slightly around Australia, there are lots of risks inside the “Social” factors of ESG. Worker safety is an important non-financial factor.
Safe Work Australia has an extensive amount of COVID-19 related health & safety precautions for firms to take. The key takeaway I see is the need to consult with employees when it comes to making your workspace safer to return to as lockdown restrictions ease. Incorporating their feedback and flexible working requests into the precautions taken will be critical.
You must consult with workers on health and safety matters relating to COVID-19. When consulting, you must give workers the opportunity to express their views and raise WHS concerns. You must take the views of workers into account and advise workers of the outcome of consultation.
The rapid loss of revenue has placed many business owners and managers under a lot of pressure. But that’s no excuse to cut any corners when it comes to worker safety, not only because it’s the law and the right thing to do, but because any worker safety related controversies linked to COVID-19 could be reputation destroying.
Short-term thinking has never been riskier.
Videos To Watch
A personal story from a climate-change activist on bushfire impact at QBE’s AGM. Expect ever-increasing shareholder demands for more transparency and reporting. To be fair to insurers, they are years ahead of many other financial services sub-sectors because of their potential direct losses in the future.
QBE has previously justified its exposure to gas on the grounds that it has lower carbon emissions than coal, and can be used to help the transition away from coal-generated electricity to renewables-powered grids. - AFR
An interview with Romain Boscher of Fidelity International on mainstreaming of ESG:
Podcasts To Listen To
ISS ESG - How the Pandemic is Reshaping Investor Approaches to Climate Change
Thanks for taking the time to read this. Please share this newsletter with anyone you think might enjoy it or provide any feedback you like in the comments or on Twitter.
Regards,
Brennan