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As a group, over the course of the past decade (2012 to 2021) these 20 companies slashed their net GHG emissions (Scope 1 and 2) by 43%, from 862 million tonnes to 489 million tonnes. During this period, it bet the farm on renewables (wind and solar) and grid modernization, building some 70 renewable power plants in 2021 alone.
For ESG-aware investors, this paucity of solid information leads to questions over whether they should they wait for information flows to improve, pinning hope on further action from regulators or legislators, or divest their holdings to avoid uncertainty over the climate risks in their portfolios. They have to make that decision themselves.
Divest or wind down? Anglo American sold its thermal coal portfolio in 2021, while BHP announced in 2022 that it would close its last such mine in 2030. This leaves it heavily exposed to reputational, regulatory and stranded-asset risk, leading many investors to avoid it.
The common use of ‘materiality’ and ‘scenario analysis’ reported by managers suggests these are already prevalent topics, while scarce mentions of ‘divestment effectiveness assessment’ or ‘enlightened active ownership’ “is consistent with the view that, in general, they are future behaviours,” the report said. A long way to go”.
Hopefully, 2021 will bring more exciting stories and analysis…). Additionally, divestment campaigns and the fear of strandedassets have become each new year more pressing. (This post was published earlier this year on Medium. Sorry for the lack of content this year.
This could stem from campaigns which lobby for divestment from polluting companies or projects. “In our view, the risk to investors from ESG or climate litigation remains primarily indirect,” Mark Banks, Dispute Resolution Senior Associate at Baker McKenzie told ESG Investor.
This could stem from campaigns which lobby for divestment from polluting companies or projects. “In our view, the risk to investors from ESG or climate litigation remains primarily indirect,” Mark Banks, Dispute Resolution Senior Associate at Baker McKenzie told ESG Investor.
University activists are increasingly citing the oil and gas industry’s targeting of kids in the classroom as another reason to divest from fossil fuels. The divestment solution. Divestment is an increasingly popular approach to combating the fossil fuel industry’s influence. The case for divestment is persuasive.
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