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How investors can help make the 2020s a decade of climate action

In practice, investors will need to encourage companies to shrink their carbon footprint, such as reducing direct emissions from energy use, improving energy efficiency, and greening their supply chains.

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Photo by Arthur Ogleznev from Unsplash.com

The world must halve carbon emissions by 2030 to stay below 1.5°C of global warming and avoid catastrophic climate change. That requires transitioning to a low-carbon economy as nearly three-fourths of global carbon emissions arise from use of fossil fuels. The COVID-19 pandemic has added to the challenge of meeting these formidable goals but is also a historic opportunity to build back better. 

“The world must enable a green recovery and ramp up the fight against climate change,” says Rasmus Skov, Head of Sustainability at renewable energy company Ørsted. “For us as companies, making carbon reductions central to business strategy is not only good for the health of our planet – it’s key to staying competitive as a business. Investors must help achieve these aims.” 

In practice, investors will need to encourage companies to shrink their carbon footprint, such as reducing direct emissions from energy use, improving energy efficiency, and greening their supply chains. Companies that deliver sustainable and scalable solutions to consumers are in scope, as are companies beginning to transform towards a more sustainable business model.

How do I align my investment portfolio with the 1.5°C scenario?

Begin by gaining a better understanding of your portfolio’s climate impact and exposure to fossil fuels. For a first estimate, upload your portfolios to the Paris Agreement Capital Transition Assessment (PACTA) tool developed by the 2° Investing Initiative. The tool is free and can be used as a starting point for aligning your portfolio with the 1.5°C scenario. You can then: 

  • Commit to a Net Zero target and report on your progress
    Commit to transitioning your investment portfolios to net-zero carbon emissions by 2050, in line with the Paris Agreement. You can do that by joining the UN-convened Net-Zero Asset Owner Alliance, which represents more than USD 4.6 trillion in assets. The Alliance builds on the work of the Science Based Targets initiative (SBTi), which will launch a framework in 2020 to help financial institutions align their lending and investment portfolios with the Paris Agreement. Also, establish a roadmap for decarbonising your portfolio and report on your progress using the Task Force on Climate-Related Disclosure (TCFD) framework.
  • Drive change in your portfolio companies
    Require that all companies in your portfolio report on their carbon emissions, which is a necessary first step in taking action to reduce emissions. Encourage them to set ambitious emissions reduction targets under the SBTi, define a credible pathway with short- to medium- term actions for achieving these targets, and transparently disclose on progress.

Are you a first mover?

Investors may find it a daunting and complex task to decarbonise their portfolios and wonder if it is worth the effort. “There are benefits to increasing low-carbon investment,” says Marco Kisic, Senior ESG Analyst, Research Insights at Nordea bank. “First movers who invest to support the transition of carbon-intensive sectors could be rewarded with above-market returns, while those who don’t might see their portfolios exposed to significant risk of stranded assets.”

He explains that obviously green companies with a “strong green narrative”, such as energy efficiency, forestry and renewables, have had an annualized return of 21% relative to the market in 2017-2020. Companies that further enable the transition to a low-carbon economy, such as manufacturers of electricity transmission cables, are also expected to benefit because policy frameworks such as the EU taxonomy incentivise investments into companies with a high share of environmentally-sustainable economic activities. “This second group of companies are currently undervalued but are likely to offer the next wave of climate-opportunity outperformance,” Kisic says.

Green transformation

For its part, Ørsted demonstrates it is possible to increase profitability by making decarbonisation the keystone of business strategy. The company has transformed from a fossil-fuel based energy company to one of the world’s largest renewable energy companies, and the most sustainable company in the Global 100 index.

“Tackling the climate emergency is not only about technological solutions and financial viability, but also the will to act now. If companies and investors join forces to reduce emissions at unprecedented pace and scale, they can help make the 2020s a decade of green action to stop global warming at 1.5°C. It’s never been more urgent to invest in climate action,” says Rasmus Skov. 

Ethical Biz

FedEx Cares helps 2,400 Filipino students start the school year healthier

This initiative is part of FedEx Cares, the company’s global community engagement program, and aims to improve the health and well-being of Filipino students ahead of the upcoming school year.

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Federal Express Corporation (FedEx), one of the world’s largest express transportation companies, collaborated with international non-profit Feed the Children to address health challenges by donating hygiene kits to 2,400 grade school children from fishing and farming communities in Bohol and Zamboanga del Norte.

This initiative is part of FedEx Cares, the company’s global community engagement program, and aims to improve the health and well-being of Filipino students ahead of the upcoming school year. A total of 14 FedEx employees supported the effort by assembling and delivering the kits, which include soap, shampoo, face towels, toothbrush and toothpaste – helping children maintain proper hygiene and stay focused on their education.\

Beyond providing essential supplies, the program promotes lasting behavior change through school-based orientation sessions in 11 schools, encouraging consistent, daily hygiene practices among students. Studies show that handwashing with soap can reduce diarrheal diseases by up to 30% and acute respiratory infections by up to 20%, underscoring the importance of early education and access to basic hygiene tools. Oral health remains a growing concern, with the Philippine Dental Association reporting that 72% of Filipinos suffer from tooth decay, with school-aged children among the most affected, making it a leading cause of school absenteeism.

“At FedEx, we believe that access to basic hygiene is fundamental to a child’s ability to learn and thrive. Through this initiative, we are not only delivering essential supplies but also fostering healthier routines and stronger foundations for learning,” said Maribeth Espinosa, managing director, FedEx Philippines. “By providing hygiene kits and health education, we aim to create a lasting impact and empower Filipino children to stay in school and reach their full potential.”

Since 2023, FedEx has worked with Feed the Children to deliver resources that support the needs of more than 5,000 children across the Philippines.

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Ethical Biz

AXA Philippines mobilizes over 2,000 employees nationwide to support communities through volunteerism

This year’s celebration underscored the company’s belief that they can achieve more meaningful change when they work as one, while marking a shift toward long-term partnerships that empower communities to grow sustainably.

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AXA Philippines, one of the largest and fastest-growing insurance companies in the country, reaffirmed its commitment to create lasting social impact through AXA Week for Good (AWFG) 2026, bringing together over 2,000 employees nationwide under the theme “AXA on a Mission: Together We Move Forward.”

This year’s celebration underscored the company’s belief that they can achieve more meaningful change when they work as one, while marking a shift toward long-term partnerships that empower communities to grow sustainably.

“When our employees come together, the impact multiplies. This year, we’re investing more into partnerships that can help communities thrive in the long run. We wanted volunteerism to go beyond participation and become part of a sustained journey with our partners through livelihood initiatives, skills sharing, and learning and sustainability programs,” said Sharon Hernandez, Chief Human Resources Officer of AXA Philippines.

From Volunteerism to Sustainable Community Development

A key milestone of this year’s AWFG is the continued development of the Medinilla Café, a livelihood project in Siniloan, Laguna that grew from AXA’s tree-planting and forest restoration efforts last year in collaboration with Fostering Education and Environment for Development Inc. (FEED). Through the first-ever “Declutter for a Purpose” initiative, AXA employees raised cash donations by selling preloved items to help sustain the café’s operations and create livelihood opportunities for local residents. The unsold goods will be donated to partner communities to extend the initiative’s impact and minimize waste.

Building on the success of AXA Forest, the company is also expanding support to community gardens in partnership with Project PEARLS, a non-profit organization with a mission to help the poorest of the poor children have a better life by giving them PEARLS: Peace, Education, Aspiration, Respect, Love and Smiles through education, empowerment, nutrition, nourishment, and healthcare. The partnership aims to help improve food security and create potential income sources for families.

Learning That Inspires Action

Throughout the week, employees also deepened their understanding of social and environmental challenges through the “Impact for Action Podcast Series,” featuring experts and nonprofit partners who shared practical insights on literacy, sustainability, disaster preparedness, workplace safety, circular economy practices, and environmental stewardship.

Partner organizations included BINHI English Literacy Foundation, FEED Inc., Asia Society for Social Improvement and Sustainable Transformation (ASSIST), Humble Sustainability, Upstyle, The Soilmate Collective Inc., and AXA Foundation. The series also highlighted volunteer opportunities that extend beyond AWFG, encouraging year-round engagement.

Employees Turning Everyday Actions into Lasting Impact

Additionally,  employees participated in a range of hands-on activities over the course of the week.  An “e-Waste Collection Drive” promoted responsible disposal by collecting used electronic devices for refurbishment or recycling, with proceeds benefiting Project PEARLS.

Meanwhile, remote volunteers contributed through “Learning Buddies,” creating reading activity sheets for young learners, and “Love in Every Bite,” sharing nutritious, budget-friendly recipes with partner communities.

AXA Week for Good is the flagship annual celebration of AXA Hearts in Action, the company’s global employee volunteering program. With a focus on community partnerships, this year’s AXA Week for Good continues to show the impact of collective action, through volunteerism, skills sharing, and supporting livelihood initiatives, reflecting the company’s commitment to helping protect what matters and build more resilient communities.

For more information about AXA Philippines and its community initiatives, visit www.axa.com.ph

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Ethical Biz

Canon Marketing Philippines leads Brigada Eskwela to help prepare Lagro High School for new school year

Beyond the physical improvements, the initiative reflected the collaboration and community spirit that Brigada Eskwela represents each year.

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Canon Marketing Philippines recently led faculty, students, and employee volunteers at Lagro High School for this year’s Brigada Eskwela, helping prepare classrooms ahead of the opening of classes.

The activity brought together Canon employees and the school’s student council to repaint and refresh classrooms, creating a more welcoming environment for returning students. Beyond the physical improvements, the initiative reflected the collaboration and community spirit that Brigada Eskwela represents each year.

Volunteers worked side by side through a morning of paint-streaked shirts, teamwork, and meaningful conversations, all toward a common goal: classrooms where students feel motivated to learn and grow.

Canon Marketing Philippines also donated printers to support the school’s teaching and administrative needs, reinforcing the company’s commitment to empowering educators and students through technology.

“Our participation in Brigada Eskwela reflects Canon’s Kyosei philosophy of living and working together for the common good,” said Anuj Aggarwal, President and CEO of Canon Marketing Philippines. “We believe education plays a vital role in shaping communities, and through simple but meaningful initiatives like this, we hope to help create better learning environments for students and teachers alike. Kyosei is most meaningful when experienced through collective action and genuine care for others.”

Through initiatives like Brigada Eskwela, Canon Marketing Philippines continues to strengthen its corporate social responsibility commitment by supporting communities and contributing to spaces where people can learn, connect, and thrive.

Canon is a multibillion-dollar company with one of the most extensive product lines of digital imaging devices. 2020 marks the company’s 35th consecutive year it has been ranked among the top five U.S. patent holders and the 16th consecutive year it has been ranked first among Japanese companies for the number of U.S. patents granted. It continues to enrich lives through technological innovation.   

Guided by its commitment to its Kyosei philosophy of living and working together for the common good, Canon provides total imaging solutions to improve personal and professional lives. The brand ranks as one of the top 20 brands in the region according to a 2018 study conducted by Campaign Asia-Pacific and Nielsen thanks to its strong reputation on performance and good corporate citizenship.   

Canon Marketing (Philippines), Inc. has offices spread across the Philippine archipelago supported by its vast network of authorized service centers. Recognitions and awards received include the Corporate Award and Gold Bagwis Seal of Excellence for providing distinctive service to customers.    

Canon Marketing Philippines reaffirms its dedication to sustainability, integrating eco-friendly practices across all its operations and product lifecycle, striving for a greener future for generations to come.    

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