With COP27 on the horizon, this quarter's RI News & Views explores two climate related issues. First, in light of the progress made in Glasgow at COP26, we explore the role of carbon markets and consider the role that carbon offsetting may play in the development of a net-zero oriented strategy. Whilst carbon offsetting is not a panacea, building consistency in how offsetting is deployed and accounted for will be essential in building confidence in future.

Second, with the growing focus on corporate activity differing from the public promises that have been made, we look at climate related lobbying and consider voting on a shareholder resolution at Tesla. Whilst the resolution which called on Tesla to report on how its lobbying efforts align with the Paris agreement only gained the support of one-third of shareholders, we consider some of the reasons given by those who supported the resolution and how asset owners can have an influence.

We include our usual focus on forthcoming significant votes and ESG snippets which touches on the polarisation of ESG in the US and the changing nature of ESG.

Download our full publication for more.