RAOGlobal: News Views & Musings

Your Weekly Digest on Responsible Investment
Week of 21st - 28th March

Welcome to your weekly roundup of crucial developments shaping the landscape of responsible investment across the globe. As the world grapples with escalating geopolitical tensions, regulatory shifts, and the continued urgency of climate action, the importance of sustainable finance has never been more pronounced. At RAOGlobal, we strive to keep you informed and connected to the key trends driving this dynamic field.

Global Highlights:

• EU Sustainable Finance Agenda Accelerates:

  • The European Union continues to solidify its position as a global leader in sustainable finance. This week saw renewed discussions on the implementation of the Corporate Sustainability Due Diligence Directive, aiming to hold companies accountable for their environmental and human rights impacts across their value chains. This development is expected to have significant ramifications for global supply chains and investor due diligence.

  • There are also new updates related to the EU taxonomy, with more concrete guidances being released on how to measure and report on "green" activities.

• US Regulatory Landscape Shifts:

  • In the United States, the debate around ESG investing continues to evolve. While some states push back against ESG considerations, federal regulators are increasingly focusing on climate-related financial risks. The SEC's ongoing work on climate disclosure rules remains a key point of interest for investors.

  • There has been an increase in shareholder activism, with more resolutions being filed on social issues, like worker rights, and diversity.

• Emerging Markets Embrace Sustainable Finance:

  • Emerging markets are increasingly recognizing the importance of sustainable finance for long-term economic development. This week saw significant announcements from [mention a specific country or region] regarding the issuance of green bonds and the development of national sustainable finance frameworks.

  • There is increased focus on just energy transitions, and how to enable these transitions in developing economies.

• Biodiversity Loss Gains Investor Attention:

  • The growing recognition of biodiversity loss as a systemic risk is driving increased investor action. The Taskforce on Nature-related Financial Disclosures (TNFD) framework is gaining traction, with more financial institutions committing to its adoption.

  • There is an increase in investment products that are focused on nature based solutions.

• Technological Innovation Drives Transparency:

  • Technological advancements are revolutionizing ESG data collection and reporting. This week saw the launch of new platforms that utilize AI and blockchain to enhance transparency and traceability in sustainable supply chains.

  • There is increased discussion about the use of AI, and how it can be used to improve ESG analysis.

RAOGlobal Insights:

• Our team is closely monitoring the evolving regulatory landscape in both the EU and the US, analyzing the potential impact on institutional investors. We are preparing to release a white paper on 31/3/2025

• We are also seeing a growing interest in impact investing strategies, particularly in emerging markets. Our upcoming conference - #RAOtheAmericas25 on June 25 in NY - will explore the opportunities and challenges of investing in sustainable infrastructure across North & South America.

• In preparing for #RAOtheAmericas25, it’s clear that biodiversity, and the financial risks it represents, will be a core talking point.

Upcoming Events:

• #RAOtheAmericas25: Join us in New York on June 25 for a deep dive into the most pressing issues facing responsible investors in the Americas.

Stay Connected:

• Follow us on LinkedIn or X @RAOGlobalOrg for real-time updates and analysis.

• Visit our website RAOGlobal.org for more information on our events and resources.

As the responsible investment landscape continues to evolve, RAOGlobal remains committed to providing you with the insights and connections you need to navigate this complex and dynamic field. We look forward to continuing this important dialogue with you.