Munich - Wednesday 19 September
Hotel Bayerischer Hof
Breakfast & Networking
Introduction & Overview
Frank Schnattinger, Chefredakteur, IPE Institutional Investment
A Concrete Case: Green Metals: the Opportunities of the Energy Transition
The transport sector - a major consumer of metals such as nickel, copper or cobalt – is alone responsible for more than a quarter of the world's CO2 emissions. Together with the power generation sector, the transport sector will have the greatest impact in further CO2 emission reductions. There are three major ways it can achieve this: by reducing the weight of cars, electrifying transport, and storing electricity. In this presentation, Candriam looks at the often-overlooked major role that metals play in energy transition and to help you forge your convictions and take informed investment decisions, it will consider:
- The mining sector: between controversy and necessity;
- Copper, cobalt, and aluminium: of which metal will the energy transition medals be made?
- Demand versus resources: potential pitfalls;
- Key companies in the "Green metals war".
Identifying Weak Signals in Managing ESG Risks
Fulfilling investors’ fiduciary duty requires a holistic risk assessment of companies that can no longer overlook extra-financial information. If undertaken correctly using a pragmatic ESG approach based on materiality, integrating ESG can lead to additional value. In this presentation, CPR Asset Management will give an overview of its differentiating methodology that combines standard overall ESG ratings with more granular ESG information: the so-called “weak signals”.
Coffee & Networking
Investing for a 2°C World: Reduce Your Footprint, Expand Your Opportunities
- Understanding the connection between investment portfolios and climate change
- How to measure the carbon footprint of an investment portfolio
- New multi-input climate impact methodology: improving the evaluation of the climate impact of portfolios and developing investment solutions fit for a 2°C world
- The leading role of active management: what are the alternatives to representative indices that are not aligned with the needs of ambitious climate scenarios?
Foundations of ESG Investing
The latest MSCI study Foundations of ESG Investing examines how ESG is correlated to the valuation and performance of companies, both through their systematic profile – lower cost of capital and higher valuations – and their idiosyncratic risk profile – higher profitability and lower exposure to tail risk. Investors may still question whether ESG ratings can provide additional differentiation and insights within a universe of high quality stocks. MCSI’s study found that companies with strong MSCI ESG Ratings exhibited higher returns and valuation even among the strongest performing companies. Most of this outperformance was driven by management of social, environmental risks and opportunities, as there was relatively little variation in governance scores. In relation to emerging markets, companies tend to have lower ESG ratings than global peers. But by actively tilting to higher ESG rated companies, it added value, with companies in the MSCI ESG EM index demonstrating lower risk and higher returns since inception. Excluding companies with poor ESG ratings from the index helped to avoid significant downside events, but contribution to performance also came from overweighting better ESG quality companies. This presentation considers these and other discussion points about the foundations of ESG investing.
Discussion Panel / Roundtable