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Divesting from fossil fuels isn’t just good for the planet. billion in returns over the last 10 years by not divesting from fossil fuels. In 2016, Corporate Knights analysis showed that the New York State Common Retirement Fund lost at least US$5.3 It can be good for financial returns, too.
For years, seven of the top 10 companies on the Dow Jones Index were oil companies until 2016 when most fell out of the top 10, leaving only Exxon. This helps explain why more than $11 trillion have been divested from fossil ownership, even before the University of California announced that it was divesting its $80 billion portfolio.
Since our first report was launched in the summer of 2016, a great deal has changed in the world. Larry Fink, the CEO of the largest investment firm in the world, wrote in his 2022 letter to CEOs: “It’s been two years since I wrote that climate risk is investment risk. THE CLEAN200™ METHODOLOGY. Source: CK) 1. Source: CK) 1.
They also beat the global benchmark MSCI ACWI by 30% from July 1, 2016, to January 29, 2025. on a sustainable-revenue-weighted basis, outperforming the MSCI ACWI index (162.0%) and the MSCI ACWI/Energy Index of fossil fuel companies (76.7%) on Total Return Gross USD Basis from the Clean200 inception of July 1, 2016, to January 29, 2025.
Between July 1, 2016, and January 15, 2024, Clean200 companies generated a total return of 103.5%. In 2016, we created the Clean200 in response to investors saying, ‘If we divest fossil fuels, there is nothing to invest in.’” through those years. through those years. dollars.
As more and more institutions and people are divesting from fossil fuels globally, climate responsible finance is booming. From a mere three billion USD in 2012 it has grown to $81 billion in 2016 and could reach $150 billion this year. If growth was slow from the first green bond issuance to 2012, things have accelerated since.
Reflecting on these findings, it’s perhaps understandable that some investors have become frustrated by the sector’s lack of progress. Last year, the Church of England Pensions Board and Church Commissioners divested from all oil and gas firms that failed to align with climate goals – including Shell.
Research will span the introduction of the Paris Agreement in 2016 to the conclusion of the 2023 proxy season, with the aim of comparing the voting patterns of asset owners and managers. According to Hoepner, the research will examine investor stewardship at all oil and gas companies tracked by the Transition Pathway Initiative (TPI).
Despite suffering severe impacts from climatechange, Australia remains married to coal, but alternative energy opportunities are emerging. Many of the communities dealing with this recent flooding have already had to deal with a range of cascading climate events in recent years.
What really resonated with me was the fact that I would always have conversations with friends or family about climatechange, and I would either be given one of two answers: that either it doesn’t exist, or that someday either technology or ‘they’ would solve the problem," Battochio says. . LinkedIn | Twitter.
CalSTRS is taking bold measures to mitigate the risk climatechange poses to our fund, while prioritising our plan to reach full funding by 2046 and fulfilling our promise to California’s teachers.” . Prior to unveiling its net zero commitment last September, CalSTRS started investing in a low-carbon public equities index in 2016.
More than nine out of ten (92%) focus companies have some level of executive oversight of material climate-related issues, and 75% of companies have committed to net zero by 2050. We’ve made a lot of progress in terms of changing conversations with companies; talking about net zero is normalised.”
For sustainable tech to be possible, funders, including investors, philanthropists, and foundations, must develop a two-pronged approach of intentional investments in those leading justice-centered approaches to technological and economic transitions and informed divestments from extractive and fossil-fuel-dependent systems and enterprises.
In 2016, the head of Canada Pension Plan Investment Board, Canada’s biggest pension fund, warned it should operate “at an arm’s length” from the government after it called on the fund to invest in Canadian infrastructure. California’s proposed divestment laws addresses the systemic risk of climatechange, he says.
Environmental successes are easily overlooked in a world ravaged by climatechange, biodiversity loss, an ongoing global pandemic and attacks against democracy. The dystopian legacy of the former president is becoming increasingly clear to all but the willfully ignorant as is his politicization of climatechange and COVID.
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