AXA trims portfolio's 'warming potential', as company warns of climate costs

Insurance giant’s annual climate report warns the companies it invests in could lose over 10 per cent of their revenues by 2030 under a 1.5C scenario

AXA has today published its fourth annual Climate Report, detailing how its efforts to align its investments with the Paris Agreement have led to a reduction in the ‘warming portfolio’ of its portfolio over the past year.

The report reveals how at the end of 2019 the ‘warming potential’ of its investments stood at 2.8C – still well above the ‘well below’ 2C goal set out in the Paris Agreement, but a marked improvement on the 3C projection for the portfolio that was recorded at the end of 2018.

The company also highlighted how the 2.8C trajectory for its investments compares favourably with an industry average of 3.6C.

Thomas Buberl, CEO of AXA, said the report – which is in line with the French law on energy transition for green and ecological growth and the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD) – provided “an essential tool for measuring the effectiveness” of the insurance giant’s climate strategy.

The company has recently pledged to ensure its investments are in line with a 1.5C warming scenario by 2050, and to support the goal it has committed to mobilising €24bn of green investments by 2023 and ensuring it has no coal assets in its portfolio by 2040.

However, Buberl acknowledged that the report “shows that we must collectively pursue our efforts to achieve the objectives of the Paris Agreement, notably in the context of the post-Covid 19 economic recovery.”

The report also reiterates AXA’s previous warning that “a 4C world is not insurable” and highlights the scale of the risks the company and the wider investment sector faces as climate risks escalate.

Specifially, the report calculates projected climate-related costs in 2030 under a1.5C warming scenario for the companies AXA invests.

“Our exploratory analysis also shows that, on aggregate, when using a 1.5C scenario, the companies we invest in may lose 10.2 per cent of their total revenues in transition costs, and eight per cent of revenues to physical costs, but this is partly offset by green revenues equivalent to 7.8 per cent of total revenues, thanks to integration of current green revenues and the results derived from forward-looking green patent investments,” the report states. “Ultimately, and according to this methodology, AXA’s net “company cost of climate” appears to be equivalent to an average 10.5 per cent of the turnover of the companies we invest in.”

The report calculates that the projected loss of revenues would translate into a 3.3 per cent reduction in AXA’s investment value, but it also warns that “this averaged figure necessarily smoothes out heterogenous impacts amongst market players: some will likely be far more impacted than others”.

It also notes that costs could be lower in 2030 under a 3C scenario, as businesses would face lower transition-related costs. But then physical climate risks would increase drastically later in the century under such a scenario as climate impacts escalate.

Original Source: businessgreen.com

One97 Communications Ltd (OCL), which owns payments and financial services platform Paytm, along with Vijay Shekhar Sharma, is set to acquire Mumbai-based private sector general insurer Raheja QBE. The acquisition is subject to customary conditions, including approval from the Insurance Regulatory and Development Authority of India (IRDAI).

Paytm, Vijay Shekhar Sharma

Vijay Shekhar Sharma, Founder of One97 Communications

Also ReadPaytm Founder Vijay Shekhar Sharma launches two entities for investments

This strategic acquisition is through QorQl Pvt Ltd, a technology company with majority shareholding of Vijay Shekhar Sharma and remaining held by Paytm.

Started in 2009, Raheja QBE is a joint venture between Prism Johnson Limited and QBE Insurance Group, one of Australia’s largest insurers. The company said that all employees of Raheja QBE will continue working at Mumbai and other locations.

The acquisition will enable Paytm to innovate insurance products and services to accelerate its reach and adoption. In a statement, Paytm said, its mission is to drive financial inclusion for over half a billion Indians.

Amit Nayyar, President, Paytm, said, "It is an important milestone in Paytm’s financial services journey, and we are very excited to welcome Raheja QBE General Insurance into the Paytm family. Its strong management team will help us accelerate our journey of taking insurance to the large population of India with the aim to create a tech-driven, multi-channel general insurance company with innovative and affordable insurance products.”

Commenting on the development, QBE Australia Pacific Chief Executive Officer, Vivek Bhatia, said, “Today’s announcement marks both the continuation of QBE’s strategy to simplify our business and the beginning of a new and exciting chapter for our strong team at Raheja QBE.”

In March, One97 Communications said its wholly-owned subsidiary Paytm Insurance Broking Private Limited (PIBPL) secured a licence to sell life and non-life insurance from the Insurance Regulatory and Development Authority of India (IRDAI). At that time, Paytm also surrendered its 'corporate agency’ licence to obtain the brokerage licence. 

The company has tied up with around 20 of the leading insurance firms in India, and would integrate with 30 more companies over the next few weeks. 

(Edited by Megha Reddy)

Want to make your startup journey smooth? YS Education brings a comprehensive Funding Course, where you also get a chance to pitch your business plan to top investors. Click here to know more.

Original Source: yourstory.com

Founding team (Varun Agni, Anil Giri and Vivekananda Hallekere)

A file photo of Bounce co-founders: (L-R) Varun Agni, Anil Giri and Vivekananda Hallekere

Bike-rental startup Bounce's CEO and Co-founder Vivekanada Hallekere on Tuesday announced that the company has had to take the "incredibly difficult decision" of laying off around 130 employees, which constitutes about 22 per cent of its total workforce. In a note posted on the company's blog, he wrote that the decision was purely an outcome of changing business priorities due to the external environment and "does not either reflect the unparalleled capability, performance, or dedication of any member of our team". The coronavirus pandemic has wreaked havoc on the startup ecosystem, with several of them having to resort to salary and job cuts, in a bid to stay afloat.

"While we cannot know the future, our hope is that these cuts are sufficient to put us on a strong path to continue through the next period of global uncertainty and change," Vivekananda said.

We have made few tough calls at Bounce and we have to part ways with few folks who have been crucial part of building Bounce. If any of the companies are looking for great folks to be part of their journey, I am at [email protected]https://t.co/VL9ORQcy3r

— vivek (@vivekanandahr) June 29, 2020

Also Read[Behind the Scenes] What’s fueling bike-sharing startup Bounce’s 120k rides a day in Bengaluru

The CEO's note also mentioned that all laid-off employees will be given a severance of three month's salary, as per their original pay before the announced cuts in April, 2020.  The employees will have the option of taking this amount in one go or have it credited to their accounts monthly, in an attempt to ensure salary credit continuity.

Additionally, Bounce will be reinstating the salary of the affected employees to the amount before the salary cuts were announced. "As per the exercise, the entire deferred amount will be given to them," Vivekananda said.

Leaving employees will also continue to have the health insurance that was provided by the company, until the end of December, this year. Employees with ESOP (Employee Stock Ownership Plan) will be awarded on a pro-rata basis.

The startup is setting up a support team to help the former staffers find suitable jobs "at the earliest". "The leaving team has the option of being part of this process," the CEO said.

In his note, Vivek also highlighted the fact that it is evident that the way people view the need for mobility will change even more significantly than than the company had expected "We have made valuable additions to our product offerings to suit the new needs and changing priorities of our customers, increasing the pace of electric vehicle adoption, but we also must acknowledge the world has changed even beyond what we anticipated," he said.

In January, Bounce announced that it had raised a funding of $105 million in its Series D round. Accel Partners and Facebook Co-founder Eduardo Saverin's B Capital Group had led the round. Existing investors Accel Partners India, Falcon Edge, Chiratae Ventures, Omidyar Network India, Maverick Ventures, Sequoia Capital India, and Qualcomm Ventures also participated in the round.

The company recently entered a partnership with electric scooter startup Ather Energy, allowing users to buy Ather 450 under its peer-to-peer programme.

Bounce operates a low-cost, dockless scooter rental model in Bengaluru and Hyderabad, with a fleet of over 23,000 vehicles (20,000 in Bengaluru and 3,000 in Hyderabad). It clocks over 1,30,000 (1,00,000+ in Bengaluru and 30,000+ in Hyderabad) rides a day. 

(Edited by Ramarko Sengupta)

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Original Source: yourstory.com

A reader writes:

I am asking for advice about how to handle my impending divorce at work. I work at a large nonprofit in a specialist capacity that is a recognized priority for the company, but organizationally belongs to one of five departments. I’ve worked here for 10 years. I was headhunted by the executive director, and have worked myself up to the specialist position I have now.

My husband of 28 years has been employed at the nonprofit for 20 years, and during the last five he has been the head of the department I am in — my boss.

The organization has many married couples on all levels. (The former executive director was married to the head of the largest and most important department.) My husband has previously given me worse conditions than others to avoid being accused of favoring me, to the point that the director had to step in.

It has not been easy, but I have done my utmost to behave professionally and keep my private life as separate from my work as humanly possible.

Now my husband/head of department has asked for a divorce suddenly and unexpectedly, as he is having an affair with a colleague. The divorce is a great shock, made worse by the fact that our daughter is critically ill and faces a long, hard recovery.

My soon-to-be ex-husband has the power to cut my funding, lay me off, give negative feedback to the director about me, badmouth me, and make my life even harder than it is.

I normally have a good rapport with the director, but should I tell him about the divorce and illness or not? I wish to remain professional and private, but without telling him about the divorce I have no way of protecting myself from the persecution that I fear from my ex-husband. On the other hand, the director might lay me off himself to avoid problems with my ex-husband. My priority is to keep my job, since finding a new one is next to impossible and I need the insurance for my daughter.

Oh no. I’m so sorry you’re going through this.

And whoa, this organization is a mess. Married people should never be allowed to manage each other, and it’s apparently common there. As you’ve seen, it’s a recipe for all kinds of problems — favoritism, the perception of favoritism, lack of objectivity, and plenty more. It generally means that the employee’s performance isn’t assessed appropriately and they’re not given adequate feedback, and it can even open up your company to charges of harassment down the road (“I wanted to end things with him, but he implied it would affect my standing at work”). Most employers rightly don’t permit this.

But that doesn’t help you now, of course. He does manage you, and your organization has apparently been fine with that (even after having to intervene over his treatment of you!).

You do need to tell the executive director about the divorce. It’s very unlikely not to affect things at work, and he’ll need to be aware of that context. You also need to tell him because you need to ask to report to a different manager. I don’t know how feasible that will be logistically, but it’s utterly untenable to work for someone who’s in the process of divorcing you (and having an affair with a colleague, no less).

I get that you’re concerned about being pushed out, but even if you don’t disclose the situation, your husband probably will! It’s unlikely that he plans to pretend you’re still together, especially once the divorce is final, and especially if he wants to go public with the new relationship at some point.

Please consider consulting a lawyer for help here, aside from the legal help with the divorce itself. Firing you at the end of your relationship with your boss would put the company on shaky legal ground, and ideally you or your lawyer should stand ready to explain to the company the legal considerations in play. (Also, please talk to your divorce lawyer about getting an agreement to keep your daughter on your husband’s insurance, which should help you feel less tied to this job.)

Last, I strongly urge you to reconsider your commitment to staying in this job, especially if they won’t move you (but even if they will). You might not be able to leave immediately, but please actively work toward it. This is not a workable situation for any of you.

You may also like:can we tell dating employees that one of them has to leave the organization?my husband’s boss/our friend is sleeping with their married department headmy coworker had an affair with a colleague’s husband, and now is treating her badly at work

my husband is my boss — and we’re getting divorced was originally published by Alison Green on Ask a Manager.

Original Source: askamanager.org

Peet's Coffee ShopREUTERS/Mike Blake

Peet’s Coffee raised $2.5 billion in its initial public offering, one of the largest this year despite the coronavirus pandemic. 
The company announced its IPO plans just 10 days ago. 
Shares of Peet’s Coffee surged as much as 17% in its first day of trading.
Read more on Business Insider.

A bet that coffee could withstand a pandemic and ensuing economic downturn has paid off for the European investment firm responsible for Peet’s Coffee, Krispy Kreme, and Keurig. 

JDE Peet’s BV, carved out of JAB Holdings, said Friday it raised $2.5 billion, or 2.3 billion euros, in its initial public offering. The company is selling about 71.4 million shares, or 14% of the business, at 31.50 euros per share. See the rest of the story at Business Insider

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US weekly jobless claims hit 2.1 million, bringing the 10-week total to more than 40 millionEconomists expect another 2.1 million Americans filed for unemployment insurance last week5 charts show how the coronavirus crisis has dwarfed the Great Recession in just 2 months

Original Source: feedproxy.google.com

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