ESG Investor: Integration of Social Issues Critical to Confront Climate Change
Experts have backed United Nations Development Programme’s (UNDP) call to recognise the interconnectedness of environmental and social-related issues in tackling climate change.
Delilah Rothenberg, Executive Director of the Predistribution Initiative (PDI), told ESG Investor that many institutional investors may “sense that inequality – like climate change and biodiversity loss – may pose system-level risks”. But there is currently “little understanding”, she added, about how such risks manifests in financial markets, what private sector activities contribute to inequality, and how and when inequality affects investors’ portfolios.
In a recent report, the UNDP remarked that the evolution of the global financial system has created “vast imbalances” that now “pose risks” to markets and economies, and that solely using sustainable finance strategies to address climate change will be “inadequate” if interrelated social issues are not addressed simultaneously.