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Voice Through Divestment The other Honorable Mention paper examines how divestment of stock holdings and pledges to disinvest affect target companies and industries, given past skepticism about this link. The research underscores the significant financial impact of environmental advocacy and public sentiment,” says judge Lilian Ng. “It
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. In addition to divesting from oil, CDPQ plans to deepen its practice in the biodiversity space and expand the scope of its commitments in nature-positive themes.
The impetus for net zero following the Paris COP came from the academic community, was endorsed and framed by policymakers, and requires business model change, often radical, to be implemented by corporates. “We have to acknowledge that with the transition to net zero, finance is an enabler not really the driver.”. Engagement ring.
Academic evidence suggests there are limits to both the power of engagement and the threat of divestment, which is most effective when it serves to shift the perspective of directors to shared medium- and long-term interests.
Car manufacturer Toyota is facing a climate-focused shareholder resolution of its own, with Danish pension fund AkademikerPension demanding more transparency on the company’s climate lobbying practices. However, as institutional investors, academics, NGOs, investor networks and data providers congregated in London last week for ESG Investor ’s inaugural (..)
This appears to be growing, with increasing numbers in the latter camp moving further in the opposite direction, favouring divestment over engagement – at least as far as the highest emitters are concerned.
Likewise, companies in all sectors have been rushing to divest of holdings in Russia , or halt operations there. This piece examines sanctions and corporate divestments through a slightly more sceptical lens. We are not arguing that divestment is or is not the right course of action for companies to take.
Indeed, all GFANZ sub-sectors have been cautious since Republican politicians targeted banks and asset managers last year. The NZIA has been treading carefully since similar issues were raised in Q1 2022, particularly when issuing its first non-binding target-setting protocol in January.
It’s more a theoretical implication often discussed by academics who have yet to find much of a link. That said, few companies today want to be excluded from ESG indexes, and there is growing issuance of sustainability-linked bonds , which lower the cost of borrowing if the issuer meets predefined sustainability objectives.
“Constructive dialogue” sought by UK asset owners with managers, including meetings and their involvement in an academic review. Hoepner told ESG Investor : “I think it is going to be super interesting because there’s loads of the biggest asset managers involved at the highest levels of stewardship.
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