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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

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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Ethical Biz

Climate change is reshaping how companies do business

Ccompanies exposed to higher climate change risks are deliberately reducing their reliance on a small number of major customers. Instead, they are spreading sales across a broader customer base as a way of managing risk.

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Climate change is not only disrupting supply chains and asset values, it is also quietly reshaping companies’ choice of business partners.

New research based on nearly two decades of data from thousands of US-listed firms shows that companies exposed to higher climate change risks are deliberately reducing their reliance on a small number of major customers. Instead, they are spreading sales across a broader customer base as a way of managing risk.

The study, published in Business Strategy and the Environment, finds clear evidence that climate risk is driving this strategic shift, rather than simply coinciding with it. Firms facing greater exposure to extreme weather, climate-related disruption, or regulatory transition risk are less likely to concentrate revenue among a handful of large buyers.

Amplifying shocks

Authors Dr Eric Boahen, Dr Cuong Nguyen and Thi Thuy Trang Nguyen found this behaviour is particularly pronounced among firms with strong corporate social responsibility performance, higher levels of innovation, and heavy investment in physical assets such as plants and infrastructure. These firms appear to recognise that customer concentration can amplify climate shocks.

“What this evidence shows is that climate risk is no longer abstract or future-facing. It is shaping everyday business decisions in the here and now,” said Dr Boahen, Cluster Lead for Accounting, Finance and Economics at the University of East London.

“Boards and executives are not just thinking about emissions or disclosure. They are quietly rethinking who they depend on for revenue. When climate shocks can hit firms and their biggest customers at the same time, relying too heavily on a small number of clients becomes a strategic vulnerability.”

The research draws on real-world behaviour observed across almost 4,800 firms over a 17-year period.

Why it matters

For investors and lenders, the study highlights customer concentration as a potential blind spot in climate risk assessment. Companies with diversified customer bases may be better insulated against earnings volatility, financing stress, and supply-chain disruption.

For boards and regulators, the findings point to customer structure as a governance issue. Persistently high customer concentration in climate-exposed regions may signal weaknesses in risk management.

“Climate resilience is not just about where assets are located or how much carbon a firm emits,” Dr Boahen said. “It is also about how exposed a company is through its commercial relationships. Customer concentration is now a climate issue, whether companies label it that way or not.”

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Ethical Biz

Maxim Cebu drivers extend help to communities affected by natural disaster

Driver-partners of Maxim Cebu extended humanitarian aid to communities affected by the recent natural disaster, delivering water and rice to the damaged area and donating blood at the local hospital.

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In the first days of October, driver-partners of Maxim Cebu extended humanitarian aid to communities affected by the recent natural disaster, delivering water and rice to the damaged area and donating blood at the local hospital.

The assistance reached about a hundred families in Bogo City, who had taken refuge in temporary shelters set up at Cebu Provincial Hospital Bogo City and Bogo Gymnasium. The supplies were transported in Maxim’s trucks, but since the road leading to the shelters had been destroyed, the task of delivering the goods was taken on by driver-partners using more mobile vehicles – motos.

A total of 62 Maxim driver-partners took part in distributing relief goods to those in need. Together, they delivered more than 500 kilograms of rice, 200 packs of biscuits, and around 100 bottles of water. The campaign was jointly sponsored by the company and its partners, who were eager to help the affected residents during this difficult time.

The following day, a group of driver-partners visited Vicente Sotto Hospital to donate blood. More than 60 victims of the earthquake had been admitted to the hospital, which, subsequently, left the medical facility with critically low blood supplies. Seventy-two driver-partners donated approximately 35 liters of blood, while their colleagues in Lapu-Lapu City followed with 30 more donors, contributing nearly 15 liters. All donations will be used to treat the patients injured by the earthquake.

To further support recovery efforts, Maxim Cebu also organized a street cleanup to help mitigate the disaster’s aftermath. From 5 to 8 a.m., the company’s team cleared debris and helped restore order in the affected zone. This initiative not only improved the local environment but also reinforced Maxim’s commitment to supporting local communities in times of crisis.

Building on these humanitarian efforts, Maxim–Angeles Pampanga will also hold a blood donation activity at the Mabalacat LGU this coming October 30, continuing the company’s advocacy of helping communities in need and promoting volunteerism among its driver-partners.

“This earthquake has become a grave challenge for our communities, and it is at a time like this when we must stand together,“ said Poliran Christopher Landong, Head of Maxim Cebu. “Maxim and our driver-partners are doing everything we can to support the people, be it street cleanups, blood donations, or whatever else that is needed. We are a team, and only by staying united can we overcome major difficulties.”

This effort is one of the many social initiatives launched by Maxim Rides & Food Delivery and its driver-partners. It marks another important step in community support, showing that Maxim’s partners are always ready to come together when lives are at stake.

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