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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. Some companies may also need to tap into some form of government support.
In June, the Church of England Pensions Board (CoEPB) and Church Commissioners announced that they will divest from oil and gas firms for failing to align with climate goals. However, individual, specific, and isolated divestments do not make a significant difference due to the abundance of liquidity in the market. billion (US$13.2
C threshold (above pre-industrial levels) stipulated in the ParisAgreement. The University of Michigan Endowment Fund: Divesting from Fossil Fuels (Published 9.9.2020) In September 2019, there were climate change strikes at the University of Michigan.
n December 2015, the world took a vital step in tackling climate change by adopting the ParisAgreement. Progress and limitations For some focus list companies, the failure to heed engagement efforts by investors to make good on their net zero commitments leaves them open to the threat of divestment.
Increasingly, discussions in hard-to-abate sectors revolve around determining the points at which policymakers need to intervene and where investors can and should focus their efforts to ensure the best results.
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