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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.
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.
Two-thirds of funds in the EU labelled with sustainable or ESG-related terms may need to sell assets or change their names to align with new anti-greenwashing rules, with stock divestments of as much as $40 billion if all were to keep their names, according to a new report released by investment research firm Morningstar.
Financial organisations thus have a major role to play in the decarbonisation of the global economy, yet it is estimated that since the Paris Agreement in 2015, the 60 largest banks have instead invested $5.5 Clearly much more needs to be done to pivot towards more sustainableinvestment and lending practices.
Based on new underlying European Sustainability Reporting Standards (ESRS), the CSRD introduces more detailed reporting requirements on company impacts on the environment, human rights and social standards and sustainability-related risk.
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. . If engagement and voting fails to promote positive change amongst investee companies, NBIM has demonstrated its willingness to divest.
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.”.
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.
The net zero race The former MP also emphasised the importance of the Global Stocktake , and the development of new nationally determined contributions (NDCs) under the Paris Agreement, which need to be submitted by 2025 with detailed sectoral commitments. We need long-term support to move to an alternative [energy source].”
oriented investment funds in 2021. [1] oriented assets to exceed US$41 trillion by 2022 and $50 trillion by 2025 — representing one?third In particular, many states have enacted laws or other policies requiring state entities to integrate sustainability factors into their investment policies, processes and decisions.
Alignment is not just about divestment, said Bolli, but about a “collaborative mindset” that uses engagement to steer investee companies on the right path. . Swiss Re has committed to reduce listed equities and bond emissions by 35% by 2025. Collaborative mindset . Engagement is just one piece of the puzzle. Data tools .
Bolli was co-lead author of the protocol report, alongside Udo Riese, Global Head of SustainableInvesting at Allianz Investment Management. NZAOA aims to grow its member base to 200 or US$25 trillion in cumulative assets by 2025. This report is seen as an opportunity to do just that,” he said.
For example, an asset manager may have a limited carbon footprint and can appear to be on track to net zero by divesting its high-carbon assets, however such action is effectively passing the problem onto someone else.
As soon as it’s released – which should happen in the next six months – developers will move quickly to finalize investment decisions. But developers who plan to start operating in 2025, including three hydrogen-based steelmaking projects, will need to reach a final investment decision in 2023 to start on time. million euros.
She cited the massive growth of ESG initiatives as a great achievement but was wary of the lack of democratized data that can clearly define certain ESG investments as sustainable. Pretorius and Free agreed and claimed investors will expect even more from companies than mere divestment from non-renewable assets.
In June that year Texas Republican Governor Greg Abbott signed into state law one of the country’s first pieces of anti-ESG legislation, requiring state entities – including pension funds – to divest from companies that boycotted fossil fuel and firearms. Since then, anti-ESG legislation has become a craze among Republican-controlled states.
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. The name change will be effective on April 8, 2025.
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