Kering, NUS CGS partner to develop nature, climate transition studies over three years

The first of three planned studies analysed nature-related strategies from 700 listed companies across 11 industries.

Luxury group Kering has announced a three-year research collaboration with the Centre of Governance and Sustainability (CGS) at the National University of Singapore (NUS) Business School.

Together, they will develop a first-of-its-kind baseline for measuring the impact of climate and nature-related transition strategies adopted by corporations across Asia-Pacific over three phases. 

According to a May 13 announcement, the first and third studies will focus on nature-related issues, while the second study will concentrate on climate transition. 

These studies will examine strategies adopted by the top 50 listed companies in each of the 14 Asia-Pacific jurisdictions based on market capitalisation, including Australia, mainland China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam. 

The primary audience for the nature- and climate-related studies include business leaders, investors, regulators, public sector leaders and non-profit sector leaders. 

The studies aim to provide insights to the current state of nature and climate practices, establish a baseline for strategies and reporting, highlight industry trends and identify areas for improvements. 

The first of three planned studies, titled Nature-Related Practices and Strategies in Asia-Pacific, analysed nature-related strategies from 700 listed companies across 11 industries. 

It found that 35% of companies that mention nature in their reports, consider nature and biodiversity to be material issues. 

Among the 375 companies with a materiality matrix, 31% prioritise nature and biodiversity as mid- to high-priority issues. In contrast, 82% view climate change as a mid to high priority. 

Additionally, 9% of all companies have tapped into capital flows and financing opportunities related to nature. 

The results indicated that compared to nature-related disclosures, climate related disclosures are at a more mature stage, say researchers. “To close the gap, companies need to enhance their disclosure of nature-related issues by tapping on nature-reporting frameworks and encouraging greater investment.”

On the back of these future insights, Kering and CGS plan to host a series of strategy workshops to facilitate knowledge sharing and collaboration amongst sectors and industries.

Kering’s partnership with CGS at NUS Business School combines academic rigour, research expertise and real-world experience, says Kering’s chief sustainability and institutional affairs officer Marie-Claire Daveu. 

“The sustainability challenges we face today are complex, and by partnering with an outstanding university renowned for its expertise in sustainability topics, we are exemplifying the group’s commitment to collaborate with partners on the Asia-Pacific region’s sustainability journey,” adds Daveu at the Nature in the City forum jointly organised by the French National Museum of Natural History in collaboration with the Embassy of France to Singapore.

Professor Lawrence Loh, CGS director, says nature underpins “all economic activities and human well-being”. “Therefore, the disclosure of nature-related practices and strategies is crucial to provide transparency and accountability for a company's environmental impact and sustainability practices.”

The partnership with Kering is a significant step in encouraging the integration of nature-centric approaches into corporate strategies, adds Loh, “fostering a more sustainable and resilient future for all”. 

Kering manages the development of popular brands like Gucci, Saint Laurent, Bottega Veneta, Balenciaga and Alexander McQueen, among others. 

CGS was established by the NUS Business School in 2010.  It aims to spearhead relevant and high-impact research on corporate governance and corporate sustainability issues that are pertinent to institutions, government bodies and businesses in Singapore and the Asia Pacific.