This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
For the leaders of the divestment movement, which encourages institutional investors to sell off their shares in fossil fuel companies, winning isn’t everything. But after a decade of determined lobbying, the divest side is suddenly doing a lot of winning. That tally, they noted, is bigger than the combined GDP of the U.S.
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.
Tue, 02/09/2021 - 02:00. If successfully on stream by summer 2021 as its designers hope, the service should drive not only increased transparency but also increased accountability. Sustainableinvestments should grow as divestment from carbon-intensive industries intensifies. Ian Kearney.
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 survey found a broad consensus among investors on the importance of ESG and sustainability issues, with 70% agreeing that should embed ESG directly into their corporate strategy, and 75% saying that companies’ management of sustainability-related risks and opportunities is an important factor in decision-making.
Asset managers also argue that divestment does not work, and that they lose influence when they exit fossil fuel companies. Asset managers should divest from fossil fuel companies that are proving resistant to influence and concentrate their finite engagement resources on those which can plausibly be influenced,” the paper noted.
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. . As of 31 May, 2021, CalSTRS manages US$306.7 Norges Bank Investment Management (NBIM), which manages Norway’s US$1.1
Louise Wihlborn, SustainableInvestment Analyst at Aviva Investors, told ESG Investor that this year the firm will continue to increase the stringency of its escalation action, particularly with poorer performers. Mirza Baig, Global Head of ESG Research and Stewardship at Aviva Investor, described divestment as the “ultimate sanction”.
Across the sustainableinvestment landscape, resources, patience and credibility are all being stretched. – Asset managers are hiring ESG and sustainability staff, you won’t be surprised to learn, and they’re almost certainly not alone. A selection of this week’s major stories impacting ESG investors, in five easy pieces.
Head of Sustainability at CDPQ Bertrand Millot highlights the pension fund’s focus on decarbonising the real economy, as well as comprehensively divesting from the oil industry. This achievement was one of several high points in the pension fund’s 2023 sustainableinvesting (SI) report , published in April.
How Wall Street can win on climate In 2021. Mon, 01/25/2021 - 01:00. At the start of 2021, leading investors openly recognize that climate change presents a massive systemic risk and a multi-trillion-dollar opportunity. Finance & Investing. Ben Ratner. Integrate climate into core business. Contributors. Gabe Malek.
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 2021, Corporate Knights found that 12 of Canada’s biggest pension funds had quietly unloaded fossil fuel stocks over the previous 10 years. It can be good for financial returns, too.
While responding to customer or limited partner demand for ESG investments, funds are also looking to ESG-screened investments to outperform other investments because they have identified and better managed macro risks such as climate change and social unrest. oriented investment funds in 2021. [1]
Research predicts new demands on asset managers, as clients’ sustainableinvestment priorities mature. Institutional and intermediary clients’ sustainableinvestment demands are growing increasingly sophisticated, requiring managers to reappraise their skills and budget levels.
The proportion of charities that would consider the use of alternative investments in the future has also declined. Only 35% of charities that do not currently use alternatives would consider including them in their portfolios in the future – a 5% fall compared to 2021. Engagement to the fore.
May 17 2021. The P/E world: Private equity firms often have a pool of companies wholly owned or invested in and managed and advised by them in portfolio …this is the ambitious domain of the private equity (P/E) universe. For information on The Blackstone Group’s sustainability journey: [link] org/. TOP STORIES.
But with scientists expecting us to breach this barrier next year , waiting for oil and gas firms to reach the logical conclusion is not an option. Mastagni from CalSTRS is confident that the waves made by Exxon’s AGM in 2021 are still being felt and considered by oil and gas companies globally.
ShareAction sent questionnaires to 77 of the “most influential” asset management firms worldwide across 16 countries, based on their AuM according to IPE’s 2021 Top 500 Asset Managers List. The 13 which did not respond had their information completed by ShareAction based on publicly available information.
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. Plotting a path to Paris .
Since its launch in 2006, a significant portion of the global investment industry has signed on to the United Nations–backed Principles for Responsible Investment (PRI). Engagement and divestment both have a role to play The engagement versus divestment debate has been ongoing in the investor community.
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. . According to RLAM’s 2021 stewardship report , 12.5% of its engagements targeted fixed income, compared to 68.3% equity, and 19.3%
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. CPPI Investments introduced a climate change voting policy in March 2021.
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. Sustainableinvestments have now reached $4 trillion. Cement carbon laggards Companies in the cement industry that were divested by NBIM.
However, CDPQ was identified as a climate leader following its decision to divest firms involved in oil production and refining and coal mining in 2022. ‘Green’ assets now make up 12.5% Asset owners – including signatories of the NZAOA – are increasingly exploring sustainableinvestment opportunities in private markets.
Students are also starting to pressure their universities to divest from border and surveillance companies. Investors speaking on the webinar pointed to a lack of internal resource and will, with challenges sourcing data and information also impeding attention.
It was largely driven by formalities, and for many investment managers was probably viewed as just another box-ticking exercise. False dawn Things started to change in 2021. We pursue a strategy of engagement rather than divestment. Rise and fall Fast forward to September 2021. But this understanding lacked focus.
Investor appetite for sustainableinvestment continues to increase, but demand is outstripping supply, with nearly nine in ten (88%) of institutional investors calling for more product innovation from asset managers. In fact, current growth in ESG investments is derived largely from retrofitted funds, a report by PwC noted.
In Europe, myriad regulatory initiatives have been introduced that cover human rights disclosures and due diligence in business, including initiatives on corporate sustainability reporting, sustainable corporate governance , and sustainable finance, as well as trade rules and import/export restrictions.
In the UK, the Competition & Markets Authority (CMA) gave detailed guidance in January 2021 to businesses and trade associations on the treatment of sustainability agreements under UK competition law. At a national level, Germany’s Federal Cartel Office is seen as treating green cooperative initiatives on a case-by-case basis.
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.
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.
million barrels per day (b/d) in 2021 from some 11.3 Global solar deployment will continue to grow in 2023 to about 316 gigawatts, up from about 268GW in 2022 and 182GW in 2021. SustainableInvesting – Greater Scrutiny. The divestment movement will wane. Jonas Rooze, manager of sustainability and climate research.
The stated purpose of the hearings was to decide whether current laws are sufficient to “deter anti-competitive collusion” to promote ESG-related goals in the investment industry. Even so, the hearings could be contributing to rising outflows from sustainableinvestment vehicles, with investor behaviour in the US diverging from elsewhere.
Flying high, sinking low For Daniel Fugere, California-based President and Chief Counsel of NGO As You Sow, 2021 marked a high watermark for investor action on sustainability. Money was pouring into sustainable funds like never before. in 2021, according to Proxy Review. Back then, ESG was flying high.
Global investment professional association CFA Institute will be dropping the ESG term in its Certificate in ESG Investing, renaming it as the SustainableInvesting Certificate, according to messages sent to certificate-holders seen by ESG Today.
We organize all of the trending information in your field so you don't have to. Join 5,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content