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But 40% of the reductions came from divesting, or selling off, dirty assets, which from the atmosphere’s perspective is akin to rearranging deck chairs on the Titanic. In terms of sustainable capital expenditures, as a whole the 20 companies projected total sustainableinvestments of $528 billion (all figures in U.S.
The award, which recognizes high-impact research in sustainable finance, was presented to Stefano Giglio (Yale School of Management), Theresa Kuchler (NYU Stern), Johannes Stroebel (NYU Stern), and Xuran Zeng (NYU Stern).
The fund was previously under pressure to divest from carbon-intensive oil and gas companies but, like other asset owners, CalSTRS is choosing to engage, with divestment serving as a last resort. . Norges Bank Investment Management (NBIM), which manages Norway’s US$1.1 As of 31 May, 2021, CalSTRS manages US$306.7
Canadian pension fund to eschew “blanket divestment”, emphasising role as “active investor and influencer”. Blanket divestment is not the best way to maximise returns without undue risk of loss. And it isn’t the way that we as active investors have maximised our returns over time.”.
“The Commission has been quite open about wanting to see competition as a tool for delivering sustainability goals,” said Kirrage. Following a consultation initiated in September 2020, the Commission has accepted the need to provide clarity on the circumstances in which cooperation on sustainability-related objectives is permissible.
Climate change is the leading issue being addressed by US asset owners that incorporate ESG factors into their investment decisions, according to the US SIF Foundation’s latest biennial Report on US SustainableInvesting Trends. Managers also reported applying fossil fuel divestment screens across US$1.2
Adding our perspective why this is a very important development: The company is a member of the American Investment Council (formerly, Private Equity Growth Council). What about P/E and sustainability? . For information on The Blackstone Group’s sustainability journey: [link] org/. TOP STORIES.
This slashes portfolio emissions and sends a strong signal to oil and gas firms about the financial consequences of failing to set out credible transition plans.
The concept of assessing what effective stewardship should look like was first introduced by the FCA in 2019 in a joint effort with the Financial Reporting Council (FRC), setting the groundwork which helped define what the minimum expectations should be for financial services firms investing on behalf of clients and beneficiaries.
The report also found that some managers have shown “sharp changes” in performance since 2020, with European asset managers continuing to lead on responsible investment overall compared to their North American and Asia Pacific counterparts. Dutch firm Robeco led the rankings and were the only firm to be given an AA ranking.
These included the need for better information flows to ensure stewardship “can be efficiently implemented and transparently assessed” and the role of systemic stewardship in supporting the achievement of positive sustainability outcomes.
Investors want greener options and are willing to pay for it — since 2020sustainabilityinvestments have increased 63%. Market regulator Hong Kong Exchanges and Clearing, with a $6 trillion market capitalisation, now requires issuers to disclose their environmental, sustainability and governance scores. billion annually.
One might expect governance ratings to change over time rather than overnight,” said a sustainableinvestment analyst at a large UK-based asset owner. . Any decision made to disengage or divest must be done in a responsible fashion, including scrutinising for any unintended human rights consequences.” .
Through SIPs, trustees with 100 or more members are now expected to publicly state their – or their external managers’ – engagement policy and priorities, and explain in detail how they steward their sustainableinvestments.
The influence of sustainability-minded investors can be seen in divestment strategies of both state- and privately-owned debt issuers. Divestment is typically a last resort. . Many high-emitting miners and oil and gas companies are pushing their fossil fuel assets to private markets,” says Spavieri. .
Divestment was the least selected due diligence action by both business and general respondents. An investor toolkit issued by the Responsible Investment Association Australasia (RIAA) highlights the impact human rights violations in supply chains can have on the share prices of portfolio companies.
Advancing sustainableinvesting in 2021 will also necessitate a shift in proxy voting among the world’s largest asset managers. Given the rise of passive index investing, supporting government action in carbon-intensive sectors is essential, as leading financial firms favor continued investment over sector level divestment.
While 88% of asset managers disclosed their votes publicly (up from 55% in 2020), 42% failed to publish their rationale for votes against shareholder resolutions, the report said. Transparency is improving, but slowly.
Despite appearances, sustainableinvestments have quietly had a great year. Given the poor performance of green energy stocks and the chorus of opposition against anything viewed as “woke,” it’s easy to get lost in the narrative that the shine has worn off sustainableinvesting. But that’s not what I’m seeing.
Ashley Thomson, Global Witness’s US Senior Policy Advisor Similar concerns have also been raised by Tariq Fancy, BlackRock’s former sustainableinvestment chief, who criticised the firm for “misleading investors” by using the ESG label, calling it a “dangerous placebo”. JBS is widely regarded as an ESG pariah.
End of Week Notes It’s not a “craze” and sustainable investors aren’t naive I suppose it’s a sign of success when The Wall Street Journal sees fit to launch a weeklong critique of sustainableinvesting. Instead, it’s turning toward stakeholder capitalism, which is supported and enabled by sustainableinvesting.
SustainableInvesting – Greater Scrutiny. The divestment movement will wane. Jonas Rooze, manager of sustainability and climate research. million in 2020 to over 10 million in 2022. However, only the European Union, UK and New Zealand currently have prices within or above this range.
The investor has emerged over the past several years as a leading voice in the investment community on climate change and energy transition-related themes, but has been clear in its belief that these issues are considered from a fiduciary perspective, with clients’ long-term interests in mind.
Norway-based asset manager Storebrand recently excluded First International Bank of Israel for its involvement in the Occupied Palestinian Territory, while a number of major European banks and pension funds divested from Israeli weapons manufacturer Elbit.
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