Key Takeaways from Our Second Annual Global Sustainability Summit
By: Andrew Hall, Bridget Realmuto LaPerla, David Krauss
November 4, 2022
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2 minutes 30 seconds
Hundreds of issuers, investors, and market leaders joined the TD Securities second annual Global Sustainability Summit online on October 12, 2022. The Summit focused on new opportunities, global energy transition, and navigating the changing regulatory landscape. Industry experts discussed innovations in environmental, social, and governance (ESG) solutions. Read some of the key takeaways from this landmark event.
Government regulations, market direction, and the very need to operate within a sustainable society is driving the market to embrace ESG as part of an investment strategy. As stated by our keynote speaker, CEO of Conexus Financial and former CEO of the UN Principles for Responsible Investment, Fiona Reynolds, "we live in a society, not an economy." While companies are economically driven in pursuit of profits, they can substantiate why and how they are approaching ESG issues to their stakeholders and document those solutions to authenticate their efforts.
Sustainability is a new frontier for innovation
Initiatives like the Inflation Reduction Act (IRA) made by the U.S. federal government unlocks financing for economic transformation across industries, particularly companies transitioning to a low carbon economy. Looking to emerging markets, blended finance can mitigate the risk through concessional finance. Investors and issuers alike discussed interest in and efforts to contextualize earnings to determine based on value created and/or destroyed in the market.
Emissions footprints can be a competitive advantage – no matter the industry
Global net zero commitments require companies to invest in sustainability to remain competitive, just as they did with digitization. This can require significant upfront capital expense, but summit participants learned how to work effectively with clients and shift these ventures to operational expenditures. Even if managing emissions footprint isn't directly material to an industry, it may be within an industry's total value chain. For example, financial institutions consider their scope 3 carbon emissions as their financed emissions. This idea was reenforced by Riaz Ahmed, President and CEO of TD Securities; "ESG is reshaping how we do business, creating both challenges and opportunities."
Voluntary carbon markets are positioned for exponential growth
Although currently dwarfed by the size of the compliance carbon market, the voluntary market has seen rapid expansion over the last couple of years, with continued scope for further growth. While the voluntary carbon market is still growing in scale, market principles and standards continue to evolve, with a number of market-led initiatives seeking to bring greater standardization across the industry. In addition to facilitating emissions reductions, carbon markets can also provide an avenue to recognize the value of natural capital, allowing companies the ability to maximize returns from assets already imbedded within their businesses.
This material is intended to provide commentary on economic, political or market conditions. Not Advice: The information contained in this material is for informational purposes only and is not intended to provide professional, investment or any other type of advice or recommendation, or to create a contractual or fiduciary relationship. Neither TD Securities (USA) LLC (“TD Securities USA”) nor any of its affiliates (collectively, “TD”) makes any representation or warranty, express or implied, regarding the accuracy, reliability, completeness, appropriateness or sufficiency for any purpose of any information included in this material. Certain information may have been provided by third-party sources and, while believed to be reliable, has not been independently verified by TD, and its accuracy or completeness cannot be guaranteed. Not Securities or Derivatives Research: This material has not been produced, reviewed or approved by TD’s securities or derivatives research departments. The views of the author may differ from others at TD, including TD securities or derivatives research analysts. Not Independent: The views expressed in this material may not be independent of the interests of TD.
Andrew Hall
Managing Director, Carbon Markets Advisory, ESG Solutions
Andrew Hall
Managing Director, Carbon Markets Advisory, ESG Solutions
Andrew Hall
Managing Director, Carbon Markets Advisory, ESG Solutions
Andrew joined the ESG Solutions team as a Managing Director in July 2022. Based in Calgary, he has over 15 years of experience in environmental commodities, helping build out successful businesses within the financial services and energy sectors. Andrew joined TD from the TMX Group where he was the Director of Sustainable Finance, responsible for ESG and carbon markets. Prior to this, he built and ran the North American carbon and environmental commodities trading business at Capital Power.
Bridget Realmuto LaPerla
Director, ESG Solutions
Bridget Realmuto LaPerla
Director, ESG Solutions
Bridget Realmuto LaPerla
Director, ESG Solutions
Bridget joined the ESG Solutions team as a Director in July 2022. Based in Boston, she is a published ESG investing specialist with buy- and sell-side experience, providing ESG advice and solutions to corporate and institutional clients. Prior to joining TD, Bridget was the Co-Head of ESG Research at State Street Associates, presenting insights with academic partners and leading the bank's client engagement on ESG market signals. Her research is published in several peer-reviewed journals.
David Krauss
Vice President, ESG Solutions
David Krauss
Vice President, ESG Solutions
David Krauss
Vice President, ESG Solutions
David is a Vice President on the ESG Solutions team. Previously, he worked in the Energy and Power & Utilities groups and has over nine years of experience advising corporations on a wide range of M&A and financing transactions across the energy and infrastructure spectrum. Prior to working at TD, David worked in equity research and private equity.
