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With the long-term goal of netzero in mind, it may be tempting for investors to focus on capitalizing ESG trailblazers over ESG laggards. Engaging for NetZero. By 2040, the company aims to be netzero and expects their carbon management business will overtake their traditional business.
He shared the stage with Teine Energy and Wolf Midstream, two Alberta-based fossil fuel companies owned by CPPIB – neither of which have committed to net-zero emissions. CPPIB’s reluctance to acknowledge the need to phase out fossil fuels might also be influenced by the oil and gas interests prominently represented on its board.
C, and investee companies are not yet facing full scrutiny of their netzero transition strategies, posing challenges for institutional investors committed to decarbonising their portfolios in line with the Paris Agreement. Others might set a target for some or all portfolio companies to be netzero aligned by 2030.
Originally posted on GFANZ on September 19, 2023 The Glasgow Financial Alliance for NetZero (GFANZ) Secretariat today launched a consultation on its work to further refine the definitions of its transition finance strategies and support financial institutions to forecast the impact of these strategies on reducing emissions.
Chris Skidmore, former MP and author of the netzero review, talks about what the next UK government should do to get the country’s netzero commitments back on track. “I cannot vote for the [Offshore Petroleum Licensing] bill next week. In May, a High Court ruling ordered it publish a revised netzero strategy.
AXA IM also announced a commitment to begin disclosing the rationale for all votes against ESG-related shareholder proposals, noting that in 2023 it supported 68% of all such resolutions.
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.
While some investors have chosen to draw a line in the sand and divest from fossil fuels, both van Baal and Lindmeier continue to see the value in remaining invested and engaged. “Selling your shares will have no influence over the oil and gas company,” said van Baal. Hold or fold? Nest also views climate change as a systemic risk.
The NetZero Asset Owner Alliance (NZAOA) has called on governments to swiftly implement and intensify climate-related policy that facilitates capital flow towards the netzero transition. billion invested by Alliance members in 2023, primarily directed towards the building and energy sectors.
For the report, Real Asset Study 2023, Aviva Investors polled 500 institutional investors, including pension funds, insurers, global financial institutions and official institutions, across Europe, North America and Asia, representing combined assets under management of $3.5 trillion, in a survey conducted by CoreData Research.
David Byrns, Portfolio Manager at American Century, explains why transition investing is fundamental to achieving netzero. But the range of transition planning frameworks being developed to support organisations on their path to netzero is inevitably driving demand for assets turning from brown to green.
Divestment option Despite the headway being made with engagement, many large asset owners still opt for other solutions. An example was the Church of England Pensions Board’s announcement in June 2023 that it planned to divest from oil and gas companies. Divestment has been a recurring theme across Crossman’s two-decade career.
NetZero Company Benchmark 2.0 The new iteration of Climate Action 100+’s (CA100+) NetZero Company Benchmark has a “stronger focus” on emissions reductions, alignment with 1.5°C The new indicator includes metrics to see whether any emissions reductions have been due to actions such as divestment.
The protocol outlines how the 84 alliance members, with a collective US$11 trillion in assets, can align their sub-portfolio decarbonisation targets with netzero. From 2023 onwards, members are also being asked to set decarbonisation targets on new commercial real estate loans, reporting on progress from 2024.
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 sustainable investing (SI) report , published in April.
Over the past decade, many asset owners have made divestments out of fossil fuels. In fact, the total value of the institutions divesting is estimated to be US$40.5 trillion, according to data provided by the Global Fossil Fuel Divestment Commitments Database.
This week, the Anglican church’s £3 billion AuM pension scheme announced it was quitting one of the two netzero groupings to which it belongs to better focus efforts to decarbonise its investment portfolio. Meanwhile, the Kyiv School of Economics calculated that global corporations contributed US$3.5 Wind in their sails?
1 campaign has changed that, he argues. Exxon has since set a number of targets, including netzero greenhouse gas (GHG) emissions for its operated unconventional assets in the Permian Basin by 2030. Did escalating engagement by targeting directors move the dial?
trillion in AuM that have committed to transitioning their investment to achieve netzero portfolio GHG emissions by 2050 and drawing on the NetZero Investment Framework to deliver on that commitment.
Mining major Glencore’s shareholders are demanding answers over its coal strategy and its Paris-alignment at its 2023 annual general meeting (AGM), held 26 May. Rising investor demands for detail on transition planning and coal phase-out from mining firm come amid attempts to acquire Canadian rival. At the meeting, the US$64.8
It will help investors get up to speed on the least-understood risk in the economy. “This strategy is designed for the real, system-wide adjustments that will make sure we’re not divesting, we’re investing in a climate resilient economy.” Further, only 9% have implemented a response to their physical risk exposure. “It
As we move further into 2023, it can take a lot of energy to think about energy. And even if the leading countries that currently have netzero commitments do manage to achieve their goals, a 1.7°C The world has a daunting task in front of us if we hope to limit global warming to the 1.5°C
It is through good stewardship that corporate engagement can drive high carbon emitting companies to develop and implement a netzero transition plan, which will ultimately help to decarbonise the global economy,” says Stephanie Pfeifer, CEO at the Institutional Investors Group on Climate Change (IIGCC). .
CA100+ centres if attention on companies that are key to driving the global netzero transition, with its focus list comprised of 171 companies, with a total market capitalisation of US$10.3 NetZero Company Benchmark 2.0 A core component of phase two of CA100+ is the evolution of its NetZero Company Benchmark.
Divest or wind down? In 2023, the coal division contributed over CA$5 billion (US$3.64 By 2035, it has committed to halve its Scope 1, 2, and 3 emissions from a 2019 baseline, with goals to hit netzero by 2050. The company said it would continue the “responsible decline of its thermal coal operations over time”.
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. The UK’s Financial Conduct Authority’s consultation from the Vote Reporting Group closes on 21 September 2023.
DP23/1, released in February, focused on the capabilities needed by FCA-regulated firms to support both economy-wide transition to netzero and sustainable business models more broadly. We want to continue to engage actively on these topics.” The post Stewardship Dialogue Must be Ongoing – FCA appeared first on ESG Investor.
We also reiterate our multi-year earnings per share CAGR of 5% to 7% from the mid-point of 2022 guidance to 2025, in large part driven by continued growth in the utility's investment programs, including obtaining a return of and on capital investments that will be recovered specifically through the next base rate case to be filed by year-end 2023.".
sounds out of tune and the latest Morningstar review of sustainable strategies, which showed that funds globally suffered net quarterly outflows for the first time on record in the fourth quarter of 2023, could be the canary in the coal mine if we don’t advance. The result is that ESG 1.0 will be ownership.
The savings, Mikkelsen says, “are enormous” and added up to a savings of 13 million tonnes of carbon dioxide in 2023 alone – equivalent to removing almost three million gas-powered cars from the road for a year. The company generated US$8 billion in revenues in 2023 but saw its profits plunge by 72.9%. Photo courtesy of Sims Ltd.
South Pole can help you navigate the existing framework as well as the new netzero guidance (FINZ) which will replace it in Q4 2023. They can also divest from high-emitting industries such as thermal coal production. When developing an investment decarbonisation approach aligned with +1.5°C
For asset owners which assign responsibility to external managers, the PRI and TAI’s work will “hopefully give asset owners a way to compare different investment managers’ resources and practices”, said McNamee.
The Church of England has announced it will divest from Shell, finally acknowledging the failure of more than a decade of investor efforts to convince the oil and gas sector to align with global climate goals. The respected investor is now divesting from all fossil fuels by the end of 2023 and will no longer try to engage with oil and gas.
We will know that the rest of the US$130-trillion GFANZ (Glasgow Financial Alliance for NetZero) coalition is serious when they follow suit. degrees is the speed at which we invest, not divest. have done for new oil and gas fields – with some caveats.
HSBC Asset Management unveiled a new policy today to phase out its investments in coal-fired power and thermal coal mining, with plans to ramp engagement with companies on transitioning away from thermal coal, and to divest from companies over time with inadequate transition plans. C objectives or clear divestment pathways.
Many also signed up to the NetZero Investment Managers Initiative and the NetZero Asset Owner Alliance. Many investment managers and asset owners – which at that time committed to netzero – didn’t fully appreciate how they were going to meet their objectives. A – Stewardship.
ShareAction has subsequently outlined its recommendations for investor reporting guidance, which it says should be implemented during the initiative’s next five-year cycle, commencing 2023. . Companies falling short of these red lines will be subject to either divestment or the asset manager voting against company directors. .
Both were speaking at a panel session on putting netzero commitments into practice on the second day of the event, hosted by the UN-convened Principles for Responsible Investment (PRI) this week in Toronto, Canada. of CDPQ’s total C$452 billion (US$329.7 billion) in AUM.
But by the end of 2023, the climate issue will loom again for investor CEOs and CIOs, pushing up on board agendas previously crammed with Covid-19, Ukraine and macro-economic debates. This will take time and now time has run out for the new clean lobbying to have the necessary impact to save global netzero without an overshoot past 1.5 ° C.
Pension fund makes case for divestment, against backdrop of increasingly positive climate policy across major markets. In response, PME has divested from fossil fuel investments and redirected the funds towards the energy transition by focusing on solar and wind projects.
billion in 2023. We innovate in line with customers’ needs to create iconic packaging that builds brands around the world. Led by our diverse team of approximately 23,000 people across 68 plants in 19 countries, O-I achieved revenues of $7.1 dollar, (18) changes in tax laws or U.S.
Asset owners must use all available levers to phase out fossil fuels, while also rapidly increasing investment in climate solutions to achieve netzero ambitions, according to Laura Hillis, Director, Climate & Environment, Church of England Pensions Board (CoEPB).
Averting this cataclysm requires the reduction of global anthropogenic greenhouse (GHG) emissions to netzero by 2050. Balancing act The road to netzero is inextricably linked to the phasing out of fossil fuels. Climate-related shareholder proposals are set to dominate the 2023 proxy season across jurisdictions.
The importance of water-related risks was underlined last month with the commitments to a more ambitious Water Action Agenda signed last month at the UN’s first dedicated water summit in 50 years, part of a focus throughout 2023 on getting the UN Sustainable Development Goals back on track.
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