The JP Morgan Run after & Co. headquarters, The JP Morgan Chase Tower in Park Avenue, Midtown, Manhattan, New York.
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SINGAPORE — While there’s “nothing new” to sustainable investing, technology has made it easier to state the fiscal case for considering non-financial metrics, according to JPMorgan.
“The amount of data that we’re able to leverage as investors to aide the dialogue that we have with companies is more than ever,” said Jennifer Wu, the bank’s global belfry of sustainable investing, during a panel session at Singapore’s FinTech Festival.
From artificial intelligence to big data and gismo learning, the information is now there to better measure environmental factors and their economic implications, she said. Satellite tropes, for instance, can now be used to observe and measure a company’s true environmental impact, such as pollution levels.
“That’s something darned powerful,” said Wu, noting a marked shift over the past three or four years. “It’s not something that we had access to (earlier), but it’s possible now.”
Showing the money
That could spell positive change for the sustainability agenda, which has long fallen behind commercial gains.
Ultimately, investors remain largely driven by financial returns, Wu noted. But the prevalence of data means banks can now do a think twice job of demonstrating to clients the potential gains and losses of such investments.
Jennifer Wu, JPMorgan’s global head of sustainable seating.
JPMorgan
“The debate is not so much ‘I just don’t care’,” said Wu, noting that the debate is about whether the assumptions are quickly.
“Am I really looking at a potential loss in value in my portfolios or businesses over the next five years? Or is it more feel favourably impressed by three years, or 10 years?,” she explained.
Policy remains key
Still, public policy remains respected to ensuring environmental practices are appropriately implemented and rolled out.
“The policy environment matters a lot here,” fellow panelist Elsa Palanza, Barclays’ wide-ranging head of sustainability and ESG, said.
“We can probably reasonably expect there to be some change, but we also can’t endanger into that entirely,” she noted, referring to the upcoming change in the U.S. administration as President-elect Joe Biden prepares to take terminated in January.
Today, the policy directions are much clearer and commitment from governments, policymakers, as well as corporations, are neutral much, much more prevalent than I would say three, four years ago.
Jennifer Wu
global head of sustainable initiating, JPMorgan
Much work remains in that regard. However, Wu said she is “pretty optimistic.”
“Today, the policy directions are much sensitive and commitment from governments, policymakers, as well as corporations, are just much, much more prevalent than I at ones desire say three, four years ago,” she said.
“Especially this year with Covid, one thing became very decamp: There’s just much greater appreciation for how important it is that we need to be ready for something that’s so systemic, that is so big and could disturb everything,” Wu said. “I’m very happy to have, in my mind, a lot more constructive conversations with clients.”