Spotlight on Danielle Welsh-Rose, Head of Sustainability Investment Specialists & APAC Sustainability, abrdn
Global Thought Leader Spotlight
Danielle Welsh-Rose, Head of Sustainability Investment Specialists & APAC Sustainability, abrdn
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I am the Head of Sustainability Investment Specialists and APAC Sustainability at abrdn. My responsibility encompasses managing the Sustainability Investment Specialists team, that is spread across APAC, the UK and the US. Simultaneously, I also lead the Sustainability Institute, APAC and I am responsible for the overall APAC sustainability strategy.
My team works on many facets of sustainability, including working closely with clients and client teams on commercialising our sustainability capabilities, delivering client ESG training, running the sustainability institutes in APAC and the Americas, and developing and delivering ESG L&D programme to our global colleagues – the Grow Sustainably Academy.
In the current environment, there are a number of key issues that I see as pivotal for any climate committed investor to have on their radar and think about potential ways to address them. These include but not limited to:
1. Net zero aligned investing, in a world not aligned with net-zero
The world is not currently on track to cap global warming to well below 2℃. A lack of clear climate policy direction, exacerbated by conflict and energy security concerns, compounded by a backlash against sustainability in some regions, create an uncertain world for companies and investors.
Private sector financial flows cannot fully align with science-based climate objectives unless public policies and regulations are credibly aligned with the said objectives.
2. The growing need to consider climate adaptation
The warmer our trajectory the greater the physical impacts from climate change - and we are already seeing this manifest across the globe. Our focus increasingly needs to shift to financing adaptation to that warmer world.
However, there is a massive shortfall in adaptation finance and most sectors are failing to adequately consider their resilience.
3. The ‘Just’ transition
The goal of net zero by 2050 cannot be achieved at the detriment of people and societies. Failing to implement a ‘just’ and orderly transition to a low carbon society can create considerable risks for businesses, countries, and therefore investors.
Sustainable Investment: The way forward
We need to bust the myth that sustainable investment means poor performance. Factoring in climate change and the energy transition is crucial to meet our fiduciary duties over the coming decades. The implications of not doing so includes stranded assets, the rising cost of physical impacts, supply chain disruption, geopolitical unrest and lower returns, among others.
The regulatory environment is seeing material changes, but we need to consider how to go beyond regulatory minimum requirements. Regulations are helping to push the increase in the availability of data - this is providing potential to integrate top-down and bottom-up approaches to maximise insight on the shift.
Forward-looking, investment-useful climate analysis is critical to navigate the uncertain policy and technology pathways ahead. Quality scenario analysis allows us to gain a more comprehensive understanding of the range of potential impact or upside. This will provide investment insight that can feed into strategic asset allocation and portfolio construction.
Combining scenario analysis with the assessment of the credibility of transition plans is crucial; we cannot take company targets and stated ambition at face value - it is important to identify the credible transition leaders.
Active owners should see engagement as a critical tool to encourage real world decarbonisation and change. Scenario analysis and assessment of credibility provide important company specific insights to inform those discussions and help push engagement for positive outcomes and the timely transition from ‘brown to green’.
Danielle presented at Global Investment Institute’s recently held Net Zero Investment Forum, which will be held again next year on Thursday, 13 March 2025 in Melbourne CBD, VIC.
To register your interest in attending, click here or for more information email zlatan@globalii.com.au.
Danielle Welsh-Rose, Head of Sustainability Investment Specialists & APAC Sustainability, abrdn
Danielle is the Head of Sustainability Investment Specialists at abrdn. She leads a global team that supports end-to-end client sustainability propositions, including incubating sustainability commercialisation ideas, owning the sustainability narrative, and leading the development of sustainability training.
As Head of APAC Sustainability, and Head of the Sustainability Institute, APAC Danielle develops and leads ESG strategy for the region, supports the integration of ESG factors into investment decision-making across Asia-Pacific, and advocates for the importance of sustainability capabilities with clients and other stakeholders across the region.
Previously, Danielle was Head of ESG for the Victorian Funds Management Corporation (VFMC) and held senior roles in consulting and superannuation, focusing on sustainability investing.
Danielle has over 20 years of industry experience, and holds a Bachelor of Arts from Monash University, a Graduate Diploma of Applied Finance from Kaplan, a Masters of Environment from The University of Melbourne, and a Master of Laws (Juris Doctor) from Monash University.
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