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In 2022, BP invested US$4 billion (or 25% of its total investments, including capital expenditures and acquisitions) in renewables. billion in gas in 2022, according to Follow This. Activist investors and environmentalists had hoped that the record profits the company made in 2022 (BP reported a record US$27.7
In 2022, ExxonMobil committed to achieving net zero greenhouse gas emissions for operated assets by 2050. Strandedassets Speaking later with ESG Investor , Lord Deben stressed that strandedassets – when investment assets become liabilities – will present a significant challenge for investors in the transition to a low-carbon economy.
Is Bitcoin the next strandedasset? In fact, in 2022, the cryptocurrency Ethereum transitioned from POW to POS, reducing its energy consumption by nearly 100%. Recent developments in technology suggest the industry has started putting plans into action, with the appearance of sustainable tools and infrastructures.
If Canada’s pension fund managers don’t take sustainability seriously, he adds, “they could get caught with strandedassets, which will cost their pensioners a lot.” They have a big role to play in facilitating the transition to a low-carbon economy.” 79000 0.14
While some investments are neutral (deemed neither “clean” nor “dirty”), in many cases these companies are still investing most of their capital into assets that will either lock in further GHG emissions or become strandedassets as the energy transition takes shape. dollars) through 2030.
Gas demand is set to peak in 2030 in all scenarios, the IEA has said, raising the thorny question of when new investments in oil and gas will become strandedassets. That’s why Julia Levin, associate director of Environmental Defence, is wary of the federal government’s “sector-agnostic” loan guarantee.
In 2022, more than 18,700 companies disclosed environmental data through CDP, up more than 40% over the prior year. Earlier this week, for example, Canada proposed new rules introducing recycled content requirements for plastic packaging and labelling and reporting requirements for plastic products.
Case Study: StrandedAssets and the Economics of a Chinese Power Plant. These differences can be more sharply examined by analyzing the economics of a Chinese power plant and stranded-assets risk. Strandedassets are a common theme in investment analysis of the global energy transition.
“In the updated net zero scenario, a huge policy-driven ramping up of clean energy capacity drives fossil fuel demand 25% lower by 2030, reducing emissions by 35% compared with the all-time high recorded in 2022,” the IEA writes. So far, about one-quarter of the new plants are under construction, GEM reported.
CDP and Planet Tracker’s High and Dry: How Water Issues Are StrandingAssets , May 2022 report recognizes that “Water risk is already strandingassets across major sectors of the global economy.”.
DESCRIPTION: MELBOURNE, Australia, August 23, 2022 /3BL Media/ - Integrating mining infrastructure solutions across power, water and other critical technologies provides Australia’s mining industry with opportunities to overcome sustainability challenges at every stage of the mining process. SOURCE: Black & Veatch.
Starting in 2022, CDP will also include questions for corporate disclosure around RE100 commitments. Japan and the UK are making TCFD reporting mandatory for large companies, requiring them to report GHG emissions and other climate-related disclosures beginning in 2022.
Alongside strandedasset dangers for investors, the early phase-out of emerging markets coal fleets leaves countries open to legal, financial risks. Indonesia s JETP was finalised at the Bali G20 summit in 2022 with a US$20 billion public and private financial commitment. This would lead to 1.5
The United Nations Environmental Assembly adopted a resolution in 2022 pledging to “end plastic pollution” with an international agreement now known as the Global Plastics Treaty. The Business Coalition for a Global Plastics Treaty was set up in 2022 and now has over 240 members.
A 2022 climate report from JPMorgan Chase showed a 0% change in operational emissions (Scope 1 and 2) from energy sector clients, and a 1% increase in Scope 3 emissions compared with a 2019 baseline. However, without proper guardrails in place, these banks continue to support business-as-usual operations from their highest emitting clients.
Canadian provinces must rein in their expanding gas systems or risk incurring staggering costs from strandedassets and failure to meet net-zero targets, the Canadian Climate Institute (CCI) warns in a new report. between 2005 and 2022.
Bill S-243 was tabled in the Canadian Senate on March 24, 2022, sponsored by independent Senator Rosa Galvez, who convened a group of expert advisors when drafting the bill, including Environmental Defence’s Segal.
The majority of the banks and insurers expected to be in full compliance with the Environmental Risk Management Guidelines by June 2022, while the rest are committed to accelerating their implementation. FIs are at varying stages of putting in place the relevant risk management processes, MAS says.
Perhaps these outcomes should not be a surprise after BlackRock, the world’s largest asset manager, described many 2022 climate resolutions as “ prescriptive or constraining ”.
trillion in assets are challenging corporate audit committee chairs on their continued omission of climate risks in financial reporting ahead of the 2022 annual general meeting (AGM) season. . Institutional investors managing a collective US$7.1
In 2022, the oil and gas industry invested just 2.5% billion), down from 14% in 2022. Last year, Shell invested US$5.6 billion), down from 14% in 2022. of its total capex in clean energy – yet the IEA suggests that a 1.5°C C pathway by 2050 would requires as much as 50% by 2030. Last year, Shell invested US$5.6
But solar and wind enjoyed record levels of generation and investment in 2022, with policy swinging behind accelerated renewables deployment in multiple markets, led by the US ; energy security and efficiency were cited as often as climate change as reasons to end our toxic relationship with fossil fuels.
Will a company’s investment take it a step closer towards a net zero world, or will it be a strandedasset tomorrow? For more discussion of how to accelerate the transition to a net zero economy, join the COP27 Business Pavilion in person or via livestream, November 8-17, 2022. This means disclosing opportunities and risks.
Anglo American sold its thermal coal portfolio in 2021, while BHP announced in 2022 that it would close its last such mine in 2030. BHP sold its oil and gas business to Woodside in 2022 in an all-share deal. This leaves it heavily exposed to reputational, regulatory and stranded-asset risk, leading many investors to avoid it.
Market turbulence in 2022 seems not to have had a negative effect on this asset class either. According to analysis from Climate Tech VC , venture capital fundraising in the climate investment space has broken new records, with US$151 billion in new funds being raised in 2022.
According to a 2022 survey sponsored by Big Society Capital, more than half the UK’s pension funds hold impact investments of some sort. Investment consultancy bfinance last year surveyed more than 250 asset owners worldwide representing more than US$7 trillion in assets.
Wind generation increased by 24% in 2022 to 80 terawatt-hours (TWh) following a 3 GW increase in capacity, the CCC report said, adding that solar generation reached 14 TWh in 2022, a 15% increase on 2021 levels.
The EU only built 11GW of new wind farms in 2021, with plans to expand this by 18GW a year over the course of 2022-26, according to a report by WindEurope, a Brussels-based association. Increasing gas infrastructure must be avoided to avert dangerous climate impacts and strandedassets.”.
Among the sustainable investment themes and concerns most likely to arise as client priorities in the near future were the monitoring of public policy by asset managers and their ability to offer impact-aligned or generating products. A long way to go”. Further, 35% could not evidence an ESG-motivated buy decision, up from 26% last year.
C temperature rise goal. However, Vanston admits that addressing the climate crisis is easier said than done, with conflicting interests and incentives at play, particularly between short-term and long-term horizons.
Over the course of 2022-2023, the TPT will be making recommendations, preparing detailed sectoral templates, creating guidance on third-party verification, and producing a pathway for future work on transition plans for consultation. . The UK isn’t the only part of the world considering mandatory transition plans. .
Gas peaker plants struggle to compete against batteries In February, Siemens Energy North America President Rich Voorberg told a conference audience that gas turbines were dead in 2022, Power Engineering reports. Now, frankly, we cant make enough gas turbines to support this market.
Investment in low-carbon industries is booming globally, opens new tab , while economies still reliant on fossil fuels are battling price volatility, strandedassets and investor uncertainty. The fastest, most secure path to long-term prosperity is through the shift to clean energy.
The US regulator, which issued draft proposals for mandatory climate reporting last week, is expected to uphold fewer objections from issuers this 2022 proxy season, having rescinded Trump-era guidance in November which? Risk of strandedassets . at Trillium Asset Management.? “In degrees Celsius.
Sector transition strategies for concrete/cement, aluminum, trucking and chemicals will follow in 2022. It makes no long-term sense to continue pumping money into an asset that is already destined to eventually have no value — a strandedasset.
Milloy during the 2022 proxy season. Morningstar’s proxy database has tracked 43 anti-ESG proposals filed by the National Legal and Policy Center, the National Center for Public Policy Research, and Steven J. In contrast, resolutions filed by other shareholders achieved an average of over 30% support across the board.”
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