US climate and energy policy alert

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Paper cites growing evidence that more investors factor in sustainability

There is growing evidence that more investors are using corporate sustainability reporting to inform investment strategies, according to a new PwC paper. The briefing, Do investors care about sustainability? Seven trends provide clues, cites multiple studies in identifying forces that are quietly driving sustainable investing from the fringes to the mainstream.

For corporate sustainability teams, the paper can help answer questions from company executives who may remain skeptical about the importance of sustainability information to investors. The briefing tells a visual story about the positive relationships between financial performance and environmental, social and governance factors (ESG), and offers suggestions on what type of data investors want.

The connection between sustainability, investors and business value is also explored in the recent Bloomberg News article: "Non-Financial Data is Material: the Sustainability Paradox", which discusses the importance of non-financial data and integrated reporting to investors seeking ESG data.

The article quotes Kathy Nieland, PwC US Sustainable Business Solutions leader, on global companies' views of sustainability strategies as a path to long-term profitability: "There is a macro trend here that will not change, and it has nothing to do with regulation. It has to do with population growth, climate change and commodity and resource limitations."

To download the PwC paper and take a brief quiz to test your own sustainable investing IQ, go to: www.pwc.com/us/investorsandsustainability.

Adaptation and preparing for the inevitable — PwC leader shares personal, professional experience at Fortune Brainstorm Green

Witnessing two massive hurricanes in less than three years as the partner in charge of PwC's New Orleans office, Kathy Nieland saw firsthand the importance of scenario planning for climate related risks. The PwC US Sustainable Business Solutions leader shared lessons from this life-changing experience during the panel, "Adaptation: Preparing for the Inevitable," at the recent Fortune Brainstorm Green conference in Laguna Niguel, California.

But while "companies need to focus on scenario planning and consider whether climate-related risks are reasonably possible or even remote," Kathy stressed that adapting to these risks can provide opportunities and create value for companies. Corporations increasingly view adaptation to climate change as a transformational opportunity, as climate issues affect all aspects of business, including operations, the supply chain, market strategy and stakeholder relations, she told the audience of business, government and environmental leaders.

"There are many different opportunities to craft a sustainability plan that will impact your business operations in a positive way," said Kathy, drawing from a business perspective based on 22 years advising SEC registrants on how to measure and report the financial impact of business risks in an objective way.

She was joined by panelists Stephen Weinstein, Chairman of RenaissanceRe Risk Sciences Foundation, and Jeff Williams, Director of Climate Consulting for Entergy Corporation, an integrated energy company that delivers electricity to 2.7 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Theo Spencer, Senior Advocate of the Climate and Clean Air Program of the National Resources Defense Council, moderated the discussion.

To view featured conference sessions, visit Fortune Brainstorm Green. (Note: Most breakout sessions, including the panel on adaptation, are not available via video).