DIVERSITY & INCLUSION

Bank of America promotes 360 staff to director in diversity push

Financial services company Bank of America has promoted 360 employees to managing directors, with more than 50% of them representing women and people of colour, according to a source familiar with the matter. Wall Street firms have increasingly sought to demonstrate a focus on diversity and inclusion with an aim to fill positions with candidates from diverse backgrounds following the murder of George Floyd in 2020 that sparked global protests on racism. Financial sector companies have long been accused of withholding senior positions to people of certain backgrounds. In a similar move, Morgan Stanley promoted 184 executives to managing director roles with a focus on diversity. (Reuters)

STRATEGY

UN-led commission aims to raise mining sustainability standards

A new commission has been launched at the London Stock Exchange to address the systemic risks faced by the mining sector that challenge its social licence to operate. The Global Investor Commission on Mining 2030 is backed by the Archbishop of Canterbury and investor network the Principles for Responsible Investment (PRI) and is being advised by the UN Environment Programme (UNEP). The commission will consider the standards, practical steps and investment needed to secure mining’s future, recognising the central role the mining industry must play in the transition to a low-carbon economy and the vulnerability of supply chains to mineral demand. It will look to identify gaps in global best-practice standards across social and environmental systemic risks including artisanal mining, waste management, biodiversity protection, child labour and conflict minerals. (edie)

REPORTING

PRI updates its responsible investment reporting framework

Investment network the Principles for Responsible Investment (PRI) has announced the release of its ‘Reporting Framework’, setting out updated reporting for investor and asset owner signatories. The PRI’s reporting process had been on hold since 2021 to allow for updates to its framework. The release of the new framework will resume the reporting cycle for May 2023. The changes to the framework reflect increasing regulatory demands facing signatories. According to PRI, the framework aims to deliver a process highlighting where progress has been made, and where more work is needed. Changes include improvements in clarity, updated terminology and minimised ambiguity in questions, as well as improvements in consistency. The framework is also incorporating an introduction of new voluntary indicators focused on human rights. (ESG Today)

CONSUMERS

Greenwashing on food, drink, toiletry to be scrutinised in UK

Britain's competition regulator will consider whether companies selling food, drink and toiletries are wrongly labelling products as "sustainable" or "better for the environment" in its latest probe into greenwashing. The regulator believes companies may be exaggerating their green credentials in an attempt to woo climate-conscious consumers in the UK’s fast-moving consumer goods sector. The Competition and Markets Authority (CMA) announced its review a year after it started looking into misleading green claims in the fashion industry. The new probe will cover food, drink, cleaning products, toiletries and personal care items. Major players including Unilever, Nestle, Coca-Cola, and Proctor & Gamble may be subject to the probe. Depending on what it finds, the regulator said it could consider taking enforcement action or opening company-specific investigations. (Reuters)

CLIMATE CHANGE

Extreme weather events driving boom in climate risk solutions

Worsening extreme weather is driving a boom in climate risk solutions, which help businesses predict financial losses to climate-related damage. The climate risk digital solutions market is expected to grow from US$880 million in 2021 to US$4 billion by 2027, according to data from market research firm Verdantix. Europe and North America will account for 75% of the climate solutions market, but the strongest market growth is projected to come from climate-vulnerable Asia Pacific, with a compound annual growth rate of 35%. Climate risk digital solutions help companies plan for losses to extreme weather and demonstrate to insurers that they understand climate risk. The financial services sector is projected to see the fastest growth in spending on climate risk digital solutions due to regulatory and commercial risks to business. (Eco-Business)

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