Cedric Baecher’s Post

🌍 I had the privilege of speaking at the World Green Economy Summit (WGES) 2025 on a panel exploring how shifting climate policies impact businesses, investors, and governments. Here is a summary of the key points I shared: 🔎 Getting Ahead of CBAM With the European Union’s Carbon Border Adjustment Mechanism (CBAM) coming into force in 2026, exporters of steel, cement, aluminium and other carbon-intensive goods face significant cost exposure. My message was a call to action for businesses to start mapping CBAM risks, embedding carbon #data and indemnities into contracts, modelling costs in P&Ls, and accelerating decarbonization. Treat CBAM not as a compliance box-tick, but as a trade and margin-protection issue. 💰 The Case for Internal Carbon Pricing Close to a third of investors remain held back by policy uncertainty. One way boards can lead is by creating certainty inside the firm. Setting an internal carbon price of $50–75/t today, with a credible glidepath to $75–100/t by 2030, brings rigour to capex, procurement, and M&A decisions. Over 1,700 companies already use this tool, and those who delay risk mispricing projects, stranded assets, and lose investor trust. 📊 Climate as Financial Risk Too many CEOs still view climate rules as a compliance headache. But as I highlighted, climate is a balance sheet issue. CDP estimates $1.3 trillion in supply-chain risks by 2026. Non-disclosure means lost tenders with buyers controlling over $4 trillion in spend. Ignoring Scope 3 emissions exposes firms to rising legal and investor risks. The sequence of pain is predictable: P&L shocks → Lost contracts → Investor downgrades → Litigation ⚡ Global South at the Forefront If I had to leave one big-picture message, it is this: the Global South doesn’t have to wait for Washington or Brussels to lead. #Africa alone needs $2.8 trillion for #netzero, Asia’s voluntary carbon #markets could add $10 billion annually by 2030, and GCC sovereign wealth funds, approximating $4 trillion strong, are deploying capital globally. The real bottleneck isn’t capital, but bankable projects and pragmatic policy. If ambition is turned into investable cash flows, the #GlobalSouth can lead the #future of #climateaction. 🌴 Ambition + Agility = Transformation The #UAE is proving that policy #innovation can accelerate transformation. Its new Federal Climate Law (May 2025) created the world’s first #blockchain based national carbon credit registry, a bold step blending cap-and-trade with #technology. Entities emitting over 500,000 metric tons of CO₂e are now mandated to participate, helping drive an estimated $75.6 billion in renewable energy investments through 2030. Today, the UAE already generates 28% of its power from renewables, while maintaining its role as a global #energy supplier. 👉 Learn more about my session and the wider summit here: https://lnkd.in/dFsqzQCc World Green Economy Organization (WGEO) Dubai Electricity & Water Authority - DEWA

🌱 Nature is beautiful and valuable in its own right, let's start there. But it also directly underpins our economy, our society and our very survival. But less than 0.1% of public budgets gets allocated to fund it. At #ClimateWeekNYC we launched our new report Making Natural Capital Count – an investment agenda: https://lnkd.in/evPEjcnv What’s at stake: 📉 $2.7 trillion GDP loss is at risk by 2030 if ecosystems start collapsing (only the beginning...) 📈 Every $1 invested in land restoration delivers $7–30 in returns (pretty decent deal, if you ask me...) 💰 $400bn a year by 2030 could restore and safeguard nature (just a quarter of the $1.7 trillion now spent on harmful subsidies) We can measure and value nature, now policy and capital markets must reward it. It is time for finance ministers, central bankers, CEOs, investors and regulators to act. This is a companion report to the Independent High-Level Expert Group on Climate Finance (IHLEG) and complements IHLEG’s core reports ahead of #COP30 in Belém. With thanks to Naoko Ishii, The University of Tokyo, Center for Global Commons, Amar Bhattacharya, The Brookings Institution, Eleonore Soubeyran, Grantham Research Institute on Climate Change & the Environment, The London School of Economics and Political Science (LSE) and our lovely team: Oscar Ibsen, Veerle Haagh, Guido Schmidt-Traub and Rebecca Nohl!

Did you know that companies with the highest carbon footprints are now facing up to 3 times the risk of default compared to low‑emission peers? A recent analysis from The Conversation—using a new global dataset that links ESG scores to credit ratings—shows that climate‑related financial risks are becoming the single biggest factor in investor sentiment and sovereign debt spreads. The study found that firms in the top quartile of carbon intensity saw a 22 % increase in their cost of capital, while those in the bottom quartile enjoyed a 15 % discount. For businesses, this means that ignoring the science isn’t just an environmental issue—it’s a tangible threat to capital access, valuation, and long‑term competitiveness. The challenge is clear: embed climate risk into every layer of strategy, from capital allocation and supply‑chain sourcing to product development and stakeholder engagement. Regulators in the EU, US and Japan are already mandating climate‑disclosure frameworks, and investors are demanding granular, science‑based scenarios that go beyond headline‑grabbing targets. Companies that adopt robust climate‑scenario modeling, stress‑testing and internal carbon accounting can identify transition‑related cost spikes, secure better financing terms, and unlock green‑innovation opportunities that create new revenue streams. Think of the early movers who used climate‑scenario data to pivot supply chains, reduce waste, and capture premium pricing for low‑carbon products. How are you re‑engineering your risk framework to capture the full spectrum of climate impact? #ClimateRisk #Sustainability #RiskManagement #BusinessStrategy #FutureProof This content was produced through an integration of a Local Ollama Model (v5.0) and an n8n workflow with large scope. Developed by Jorge Parra

🌍 Big ideas need real implementation. 💡 Innovation needs verification. 🤝 And trust? It starts with people. This week, our experts are joining the conversations shaping climate action at New York Climate Week and the UN Science Summit. 🎤 Dr. Céline Bilolo (Chief Sustainability Officer) will deliver keynotes on scaling innovation through verification and bridging the gap between science and public perception. 🎤 Bratin Roy (Global Head of Decarbonisation) will speak on governance in carbon markets and green finance credibility. 🎤 Zach Eyler (Vice President, TÜV SÜD America) will contribute U.S. market perspectives to high-level panels on carbon market trust and investor expectations. From UN headquarters to investor roundtables — follow along as we connect science, standards, and scale.

Climate finance is booming but is it really measuring what matters? Too often, carbon markets stop at CO₂ reductions, overlooking community impact and environmental co-benefits that drive real change. Meet the last innovator in our Meet the Innovator series: Xeptagon Team of Sapumal Ahangama, Irandi Panditha, Palinda Attanayake, and Tuan Q. Phan, is redefining climate finance with the SDG Co-Benefit Index. Integrated into the UNDP DPG Carbon Registry, the Index quantifies and verifies the real-world SDG contributions of carbon projects making climate finance count for people and planet. With this we conclude our Meet the innovator series. Stay tuned as we announce our Top 5 innovators next week Japan International Cooperation Agency (JICA), Co-Develop, Gates Foundation, Centre for Digital Public Infrastructure - CDPI, Boston Consulting Group (BCG) #DPI4PP #MeetTheInnovators #ClimateFinance #DigitalPublicGoods #ClimateResilience

At Environmental Sustainability and Climate Innovation, taking place during Climate Week New York on Monday, September 22, Winston Ma, Partner at Dragon Global Family Office and Executive Director and Adjunct Professor at GPIFF, NYU, will examine how sovereign wealth funds are shaping the future of artificial intelligence and sustainable investment. As governments and state-backed institutions allocate capital toward next-generation technologies, the intersection of AI, long-term capital, and climate priorities is becoming a critical driver of economic transformation. Ma brings expertise in global capital markets, sovereign investment, and technology strategy. His perspective highlights how sovereign wealth funds can play a decisive role in scaling AI applications that support energy transition, climate resilience, and inclusive growth. By aligning capital with both technology development and sustainability outcomes, sovereign funds are helping to create frameworks where innovation advances alongside environmental and social priorities. The session will explore why sovereign investment strategies matter for climate innovation and how they can accelerate systemic change. The co-evolution of sovereign capital and AI will influence infrastructure, industrial competitiveness, and global sustainability goals. Ma’s insights will underscore that the way governments invest today will shape not only technological leadership but also the foundation for a more resilient and sustainable global economy. https://lnkd.in/gNmtwkYv

ESG is dead? The data says otherwise: 97% more companies set climate targets in 18 months. “ESG is dead.” “Climate rules are rolling back.” Those headlines get attention. But they don’t tell the full story. Take a look at the uttr on the chart below! When I look at the numbers, I see a wave of action that’s hard to ignore: → 97% more companies have set near-term science-based targets since the start of last year. → Nearly 11,000 companies now have validated targets or public commitments. → Over 40% of global market cap is covered by science-based targets. → Asia is leading the charge (China, Thailand, Japan, Taiwan, Hong Kong, South Korea). → China recorded the fastest growth rate over the 18-month period, with the number of companies with science-based targets growing by 228%. China saw the number of companies with validated targets climb from 137 to 450. → Industrials, Consumer Goods, and Materials are the fastest adopters. And it’s not just targets. The rules are catching up too: ✅ Australia launched ASRS S2-climate disclosure is now regulation. ✅ The Uks consultation for UKSRS is almost at a close ✅ The ISSB framework is now adopted in 36 jurisdictions. I work with companies trying to make sense of all this. • Companies are turning compliance into a strategy • Accountants are stepping up to lead climate reporting • Small businesses feel the squeeze from supply chain demands • Boards are learning (fast) how to govern climate risk Climate reporting is not a “nice to have” anymore. It’s the foundation for credibility, resilience and trust. The momentum is clear (despite the noise) What’s your take - does the data match what you’re seeing in your sector? Where are you seeing the most progress (or pain points)? 🚀 #Sustainability #NetZero #ClimateAction #ESG #CarbonAccounting #sbti #asrs #aasb #issb @science

This week our team Daniel Cremin Nicolas Kügler Linda-Eling Lee Leslie Swynghedauw and Michael Percival are at the #Eurofi Financial Forum in Copenhagen, engaging with policymakers about sustainability risks in a increasingly fragmented world. For more on how the #EU can turn its green ambition into high-growth opportunities, explore our recommendations here: https://lnkd.in/eYtV-h-n

🌍 Debunking Carbon Misconceptions – A 2025 Relook🌍 As the global transition toward net-zero carbon emissions accelerates, how can investors align their portfolios without taking on significant active risk? In our earlier research on carbon misconceptions, we tackle two major misconceptions about net-zero commitments in equity portfolios: 1) Investors must take on excessive active risk, and 2) Net-zero is incompatible with active investing. 📉 💡 Key findings: A reduction in historical climate impact metrics like carbon footprint in scope 1, 2 and 3 can be achieved with very limited active risk. Interestingly, moving to a net-zero framework with an emphasis also on forward-looking climate metrics, transition readiness and UN Sustainable Development Goals (SDGs), investors can meet their sustainability objectives with limited active risk – typically 70bps can suffice. Moreover, a net-zero framework combines well with return objectives from active systematic portfolios. 💡 Research update: We’ve extended our “Carbon Misconceptions” analysis through mid-2025, and the results are persistent: also in an era of strong factor performance, bouts of macroeconomic volatility, and surging corporate CAPEX in AI, these findings hold true. Investors can align equity portfolios with net-zero carbon goals without taking on excessive active risk and while still allowing for alpha potential of systematic strategies. In other words, the trade-offs of moving toward net-zero are attractive, reaffirming that sustainability and performance can go hand-in-hand. 🌿 Download our full report to discover how climate objectives align with effective investment strategies: https://lnkd.in/edpPg4Sj #NetZero #SustainableInvesting #ClimateFinance #FactorInvesting #CarbonTransition

🌿 TNFD 2025 State of Nature-Related Disclosures: Nature Risk Is No Longer Silent. Over the past two years, more than 620 organizations—representing over $20 trillion in assets—have committed to adopting the TNFD framework. Over 500 first- and second-generation disclosures have already been published. The latest report highlights both the momentum and the challenges in integrating nature into financial decision-making. 📌 Report Highlights： - 78% of companies are integrating nature-related disclosures with climate reporting. - 63% of respondents believe nature risks and opportunities are as financially material as climate risks. - 77% of investors want dedicated standards for nature-related disclosures. - The LEAP approach is becoming a cornerstone for assessing and managing nature-related risks. 🔍 Consultant’s Perspective： This report reinforces a critical truth: nature is not just part of the “E” in ESG—it’s foundational to business resilience and capital allocation. From water and land use to biodiversity, dependencies and impacts are being quantified and disclosed, shaping mainstream financial strategies. I’ve observed: 1. Asian markets—especially Japan and Taiwan—are showing leadership in nature disclosures. 2. Data availability and capacity building remain key barriers. 3. Harmonizing standards (TNFD x GRI x ISSB) will be essential for efficient and consistent reporting. 🌱 Next Steps？ Companies must go beyond water and waste disclosures to fully assess nature dependencies and impacts—and embed them into risk and strategy. Nature’s resilience is business resilience. 📎 Report Link: https://lnkd.in/ghS8EvB4 #TNFD #NatureRisk #SustainabilityReporting #Biodiversity #ESG #NetZero #Sustainability Insights 🌿 TNFD 2025 狀態報告發布：自然風險，不再是沉默的風險。 兩年來，全球已有超過 620 家機構（管理資產總額逾 20 兆美元）自願承諾採用 TNFD 的自然相關財務揭露框架，並已發布逾 500 份第一與第二代報告。這份最新報告不僅展現市場實踐的進展，也揭示了企業與金融機構在整合自然議題上仍面臨的挑戰。 📌 報告重點： - 78% 的企業已將自然揭露與氣候揭露整合。 - 63% 認為自然風險與機會對財務前景的影響與氣候風險同等重要。 - 77% 的投資人希望有專屬的自然揭露標準。 - TNFD 的 LEAP 方法論已成為企業與金融機構識別、評估與管理自然風險的核心工具。 🔍 顧問觀點： 這份報告再次提醒我們：自然不只是 ESG 的「E」之一，更是企業韌性與資本配置的基礎。從水資源、土地使用到生物多樣性，企業的依賴與影響正在被量化、揭露，並逐步納入主流財務決策。我觀察到： 1. 亞洲市場（尤其是日本與台灣）在自然揭露上展現積極態度 2. 資料可得性與能力建構仍是推動自然揭露的兩大障礙 3. 跨標準整合（TNFD x GRI x ISSB）是未來報導效率與一致性的關鍵。 🌱 下一步 企業組織不應只停留在水與廢棄物的揭露，而是要全面盤點自然依賴與衝擊，並將其納入風險管理與策略規劃。自然的韌性，就是企業的韌性。 📎 報告連結：https://lnkd.in/ghS8EvB4 #TNFD #NatureRisk #SustainabilityReporting #Biodiversity #ESG #NetZero #永續顧問觀點 #自然相關財務揭露 #企業韌性