Accounting for Climate Change

 It’s not just about carbon emissions or car emissions or industrial waste. It’s about Mother Earth, and the people we depend on for life and thriving, which is why there are measures in place like the SFDR mandatory indicators to help reduce the impact of climate change.

A recent study by NASA determined that up to 70% of all carbon released during the burning of fossil fuels or natural gas in processing. Junk lifted from the earth via pipes, storage tanks, coal power plants, oil refineries, is another significant source of emissions, which was recently found accounting for around 20% of all sources of greenhouse gases released worldwide. These sources account for about 300,000 Emails reporting the presence of chemicals in natural gas being shipped around the world.

If global warming was really asitute for fear of death and despair of the future, the greatest protection we could hope to achieve would be a “green” strategy with environmental measures in place like the European Green Deal and the SFDR mandatory indicators. They are currently being touting as “environmental solutions” and the most inexpensive and best “green” solution to combat global warming. But there’s a problem that we encounter perhaps more than most people realize.

An effective “green” strategy requires research that must be conducted in parallel with the “why” going to implement the strategy. As a long-term solution, this will mean incorporating the application of this research into the already existing structure of the current measures like the EU taxonomy and SFDR mandatory indicators. By doing so, a new and reliable solution can be achieved, making the whole situation far more solid and beneficial for everyone involved.

This isn’t to say that a strategy of “going green” is a bad thing, although, it is also important that other benefits are accounted for when making a game plan, such as how to make the specific change, get your head around the situation and get started with the plan. Same goes for the profit margin of this strategy, as you need to consider the market surrounding the situation and base the application of the change organization is something that may address the issue. However, there’s another playing field to consider, and that’s the "good old” businesses and media that falsely state their efforts or are being misleading, but with the EU taxonomy reporting requirements and the SFDR mandatory indicators that won’t last for long. The media, many believe, are playing their tricks on the unsuspecting public. They, or someone who’s on their team, carefully sell their benefits and try to convince the media why it’s good for them and that they shouldn’t trust someone else, but until real solutions are presented, many are willing to spend a lot of money on a false solution. The legislation in place such as the SFDR mandatory indicators will combat the false claims and ensure that efforts are being made for a cleaner, greener future.

Moreover, understanding the underlying environmental issues may help my clients in presenting solutions, or at least mitigate negative results, as the end goal is truly more than capitalism. They may find a market for their products around which, and only with, their target market and their plans and objectives.

Everybody needs to rethink how they operate in terms of climate change. We need to be willing to revisit our own ideas, gather new light and learn new ideas. Companies, individuals, families and individuals will always need to find a balance and understand when and where to apply these fundamental elements of work and life in the future, with legislation like the SFDR mandatory indicators ensuring that everyone has their part in it. The result will be a world that is far better, in many sections, than it has ever been, and far more business focused and healthy than it has ever been, and, perhaps, kinder to our future.

European Best Best

The European Parliament (EP) adopted and finalised the SFDR mandatory indicators in litter this December. It was passed with specific targets for 2020 and 2030. The need to collect this information was recognized as the essential element in the new generation of efficient exchange of fully accurate and relevant financial information.

The legislation requires all fund managers, insurance companies and pension providers to submit a list of socially responsible enterprises managed by one or more individuals. This list must be generated based on the rating methodology adopted by the fund manager. In addition, they must add a paragraph to their investment management register ( CoyA) that describes the nature and scale of the social responsibility reflected in the organization.

Due to the structure of this obligation to follow the SFDR mandatory indicators, fund managers have the framework to assess the discussion between themselves and their stakeholders and use this analysis to recommend whether another, specifically more relevant, social responsibility initiative should be pursued.

The SFDR mandatory indicators are the "best practice" for what feed-backs that are considered issued to brokers, deal-makers regarding the true nature and scale of social responsibility component of their investments on the biggest investment baskets, regardless of whether the institution that manages their portfolios for a socially responsible cole florist can or cannot receive any benefits from the investment criteria.