STRATEGY

Beta framework launched on nature-related financial disclosures

Environmental body the Taskforce on Nature-related Financial Disclosures (TNFD) has unveiled the first beta version of its framework to align corporate reporting and action on nature-related risks. The framework – which will be modified over the next 18 months – will support corporates through three main components. Firstly, outlining key science-based concepts and definitions to help corporates and stakeholders define nature-related risks and opportunities. Secondly, outlining disclosure recommendations aligned to existing Taskforce on Climate-related Financial Disclosure (TCFD) reporting. Lastly, offering practice guidance on how nature can be incorporated into enterprise risk and portfolio management processes. The framework is additionally being designed to align with the International Sustainability Standards Board (ISSB), which was officially unveiled at COP26. The TNFD is proposing location-specific disclosure and will look to provide guidance on this. (edie)

CORPORATE REPUTATION

Goldman accused of breaching coal pledge with Peabody deal

Multinational investment bank Goldman Sachs has come under fire from environmentalists over a $150 million loan to Peabody Energy, the world’s biggest private sector coal producer. Critics argue that the Peabody deal highlights ambiguity in Goldman’s 2019 pledge to phase out financing for thermal coal mining companies, which was originally praised by environmental group Rainforest Action Network (RAN) as being the strongest coal pledge adopted by any big US bank. A RAN spokesperson now argues that the Peabody deal “demonstrates how vague and therefore non-committal the [bank’s] policy is”. Goldman Sachs has declined to respond. The loan will support Peabody in shoring up its derivatives position amid market turbulence triggered by Russia’s invasion of Ukraine. (Financial Times)*

REPORTING

ECB says banks fall short on climate risk disclosure expectations

The European Central Bank (ECB) has published a report that assesses banking climate risk disclosure performance. The report shows that while banks are making some improvements on disclosing climate risks, the level of transparency remains insufficient, with no bank fully meeting supervisory expectations. According to the report, approximately three-quarters of banks fail to disclose whether climate and environmental risks have a material impact on their risk profile. Additionally, nearly 60% of banks do not describe how transition risk or physical risk could affect their strategy. While approximately half of the banks publish key performance or risk indicators on climate and environmental risks, most of the banks that have committed to align exposures with Paris Agreement goals were found to not have substantiated these commitments in their reporting. (ESGToday)

GENDER INEQUALITY

Most US companies are not disclosing gender pay gap analysis

The majority of companies in the US are not disclosing whether they analyse the gender pay gap among their employees, and even fewer are publicly sharing what that gap is. According to a study from non-profit Just Capital, less than 25% of 954 major US companies disclose conducting gender pay gap analysis. Of those who claim to be conducting analysis, almost half do not release information about their performance on issues of gender pay equity. Only 75 of the researched companies reported the exact pay ratios between women and men. This comes as new data shows that the money made by US women compared to men has stalled since the start of the pandemic, with female employees continuing to earn 82 cents for every dollar a man makes since 2019. (Bloomberg^A; Bloomberg^B)*

COLLABORATION

Reckitt launches a ‘living lab’ decarbonisation initiative in Hull

Consumer goods manufacturer Reckitt is working with over 35 businesses and community representatives to launch a net-zero initiative in Hull in the UK. The initiative follows a “living labs” approach whereby businesses, households and local authorities all implement a range of low-carbon initiatives to outline the tangible benefits of reaching net-zero emissions. The initiative will see Reckitt and other participants develop an economic model to support decarbonisation, with results to be shared with and potentially adopted by participating businesses and communities. The company claims it will bridge the public and private sectors in supporting the government’s ‘Levelling Up’ agenda. Reckitt plans to utilise 100% renewable energy at its Science and Innovation Centre in Hull and all global manufacturing sites to meet a goal of generating 50% net revenue from “more sustainable products” by 2030. (edie)

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