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The task force also worked on a wide range of what we now call environmental, social and governance issues two decades before the ESG acronym became common in the investment world. EE: The debate about divestment versus engagement in fossil fuels is probably more heated now than ever. Both divestment and shareholder action have a role.
As well as outlining the negative consequences of waiting, an accompanying blog noted the costs will be highest for fossil-fuel exporters and energy-intensive emerging market economies, requiring countries to “cooperate more on finance and technology needed to reduce costs – and share more of the required know-how”.
Meanwhile in the asset management sector, Legal & General Investment Management said it would divest from Russian sovereign debt and the manager has reduced total exposure to 0.1% of AUM or £1.3 billion. .
Despite many pension funds declaring their frustration at laggardly transition planning in the sector, as engagement yields limited results, divestment still seems to be the hardest word. Of pensions and profits – Oil and gas profits were also in the news with higher-than-expected profits announced by BP and Shell among others.
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