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Pressure on creatives: PR, advertising firms targeted by fossil fuel divestment movement. As fossil fuel companies' social license to operate becomes increasingly frayed, more industries in their orbit are getting entangled in the reputational quagmire that is now part and parcel of any activity that exacerbates the climate crisis.
Slow-to-change investors and greenwashers in the business community will lose their cover to continue propping up the fossil fuel economy. Some previously untargeted companies, brands, institutional investors and geographies will be thrust into the limelight as central problems in the battle against climatechange.
EE: There’s a general concern about greenwashing and the dissonance between what many companies say they believe about ESG issues and what they are actually doing. Do you feel corporate greenwashing has increased or decreased from the 1970s and ’80s? Both divestment and shareholder action have a role.
Five of the global supermajors are spending around US$750 million annually on greenwashing while allocating just 12% of capital expenditures to “low-carbon” activities, according to think tank InfluenceMap. As the Intergovernmental Panel on ClimateChange and the International Energy Agency have made clear, limiting global heating to 1.5?
Similarly, 69% of investors reported that they would increase their investments in companies that successfully manage sustainability issues relevant to the business’s performance and prospects, and 67% would increase investment in companies that change their business conduct to have a beneficial impact on society or the environment.
along with ongoing corporate greenwashing and fossil-fuel disinformation, it’s sometimes hard to tell if society is moving forward or slipping back. In 2016, we created the Clean200 in response to investors saying, ‘If we divest fossil fuels, there is nothing to invest in.’” You follow the money, of course. through those years.
McMurdo says it is critical that large institutional investors unite if they are to realise change. McMurdo anticipates more such rebellions this year, which he says reflects the pervasive greenwashing evident in net zero plans. Disputing divestment. And McMurdo’s caution about divestment is not limited to the energy sectors.
EU markets regulator the European Securities and Markets Authority (ESMA) released its finalized guidelines on ESG Funds’ Names earlier this year, aimed at protecting investors from greenwashing risk, and detailing minimum standards and thresholds for funds using ESG and sustainability-related terms in their names.
Direct litigation risks include challenging investors’ mismanagement of climate and biodiversity-related risk, breaches of fiduciary duty, greenwashing, or financing environmental and human rights-related harms.
These young people have grown up under the shadow of climatechange, and they rightly view it as a threat to their future. Were the sustainability measures and corporate social responsibility offices at VW simply engaged in greenwashing? In retrospect, how should the VW CEO have reacted to the news from the EPA?
Joined-up commitments – If asset managers are likely to struggle to interpret firms’ holistic transition plans, how are they going to handle “meaningful, non-greenwashed, accountable, achievable net zero commitments”? Sodden fields, mudslides and burst dams are the most visible evidence, but urban environments face disruption too.
Direct litigation risks include challenging investors’ mismanagement of climate and biodiversity-related risk, breaches of fiduciary duty, greenwashing, or financing environmental and human rights-related harms.
Investor engagement with companies on climatechange has come under the spotlight, with some warning of shortcomings with current processes. The effectiveness of asset owner and manager actions in tackling greenwashing by companies is seen as critical to the low-carbon transition. How should engagement work in principle?
When it comes to gathering the collective will to tackle climatechange, it is often argued that public policy actions and private sector commitments are mutually reinforcing, spurring each side to go further and faster. The private sector’s ability to accelerate the pace of net zero transition is open to question.
Investors continue to suffer from poor-quality climate-related information in company reports and other statements, particularly from firms with the highest CO2 emissions. That’s the finding of a major new report by Carbon Tracker, the independent think tank that researches the effects of climatechange on financial markets.
As the urgency to address climatechange intensifies, institutional investors have a crucial role to play in driving sustainable practices and advancing climate actions. This resulted in concerns over greenwashing accusations and uncertainty surrounding the interpretation of sustainable investments.
The DWP issued a consultation last October on proposed changes to the Occupational Pension Schemes (ClimateChange Governance and Reporting) Regulations 2021 to require trustees to calculate and disclose a portfolio alignment metric to show alignment with the goal of limiting climatechange to 1.5 degrees Celsius.
Perhaps more encouragingly, almost a fifth of shareholders voted in favour of resolutions calling on ExxonMobil and Shell to accurately disclose the role of asset transfers in their reported GHG emissions reductions, which would stop them claiming CO2 cuts from divestments.
And while he used climatechange as an example, the strategy is applicable to other sustainability-related issues. As part of this approach, American Century actively engages with incumbents, accelerates business model progression and drives change in the company and across the industry.
The magnitude of private sector firepower committed to addressing climatechange now lies broadly in line with requirements to reach a low-carbon economy. It explains why activists and the public demand that the finance sector does more to address climatechange. Engagement ring.
The responsibilities of universal owners such as Temasek are clear to Franziska Zimmermann, Director for Sustainability & ClimateChange Strategy and ESG Investment Management. “As Nietsch agreed: “Nature issues tend to be so complex and systemic that divestment may have less of an effect than it might for climate.
Given the country’s status as the world’s largest emitter, the development is essential for progress against climatechange. . And the mayors of 12 cities — representing 36 million residents — announced their plans to divest from fossil fuels. Were there other announcements this week?
The Bonn Climate Conference got under way this week by unveiling a new phase in accountability and transparency of non-state net zero commitments. As most lean toward engagement rather than divestment, not least because of the complexities of the latter, focus is needed perhaps as urgently at the policy level as much as the company level.
For sustainable tech to be possible, funders, including investors, philanthropists, and foundations, must develop a two-pronged approach of intentional investments in those leading justice-centered approaches to technological and economic transitions and informed divestments from extractive and fossil-fuel-dependent systems and enterprises.
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