This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
Divesting from fossil fuels isn’t just good for the planet. billion in returns over the last 10 years by not divesting from fossil fuels. And in 2018, Ireland became the first country to divest its national investment fund completely from fossil fuel companies. It can be good for financial returns, too.
Some previously untargeted companies, brands, institutional investors and geographies will be thrust into the limelight as central problems in the battle against climatechange. As a result, we can expect to see personal, political and business incentives tilt in favor of more action to combat climatechange.
By pledging to grow its portfolio of oil and gas assets, CPPIB is making an alarming bet on the world failing to limit global heating to safe levels, putting the CPP at risk from an accelerating energy transition and our retirement security at risk from catastrophic climatechange. This “consensus” is imaginary.
EE: The debate about divestment versus engagement in fossil fuels is probably more heated now than ever. MH: Choosing among responsible investment tools – positive and negative screening, divestment and engagement – is complicated. How does this history relate to our climatechange crisis and the debate over fossil fuels?
Adam Scott is d irector and Patrick DeRochie is s enior m anager for Shift Action for Pension Wealth and Planet Health, a charitable initiative that tracks the climate strategies of Canadian pension funds and works to protect pensions and the climate by bringing together beneficiaries and their pension managers to engage on the climate crisis. .
Role of active stewardship across environmental and social themes emphasised at ESG Risk & Investment Asia 2022. . An investor’s decision to divest “doesn’t mean an end to all ESG-focused engagement with that company”, according to Eric Nietsch, Head of SustainableInvesting for Asia at Manulife Investment Management. .
The sustainable finance industry is facing a growing battle on two fronts as Republican lawmakers ramp up a culture war against “woke capitalism” and investors demand more decisive action on climatechange. . Former U.S.
Launched in 2017, Climate Action 100+ is an investor initiative that has targeted the world’s largest corporate greenhouse gas (GHG) emitters to promote taking necessary action on climatechange, and align their business strategies with net zero in order to help limit average global temperature rise to 1.5 degrees Celsius.
Larry Fink, the CEO of the largest investment firm in the world, wrote in his 2022 letter to CEOs: “It’s been two years since I wrote that climate risk is investment risk. Sustainableinvestments have now reached $4 trillion. Cement carbon laggards Companies in the cement industry that were divested by NBIM.
End of Week Notes It’s not a “craze” and sustainable investors aren’t naive I suppose it’s a sign of success when The Wall Street Journal sees fit to launch a weeklong critique of sustainableinvesting. Instead, it’s turning toward stakeholder capitalism, which is supported and enabled by sustainableinvesting.
Climate risk and resilience are largely modeled by insurance companies, looking at how a company’s assets may be affected by rising sea levels, extreme heat, increasing natural disasters and other future climate events as climatechange worsens. said Free.
Nadja Picard, Global Reporting Leader, PwC Germany, said: “We are seeing significant steps towards more consistent reporting from companies around climatechange, however there is a need for improvement.”
The investor has emerged over the past several years as a leading voice in the investment community on climatechange and energy transition-related themes, but has been clear in its belief that these issues are considered from a fiduciary perspective, with clients’ long-term interests in mind.
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.
This represents a significant number of funds that may need to consider either divesting from the stocks or rebranding. Our research shows that more than 1,600 funds are exposed to at least one stock potentially in breach of activity-based exclusion rules.
As more and more institutions and people are divesting from fossil fuels globally, climate responsible finance is booming. Part of this revolution is the meteoritic growth of green bonds, which were started in 2007 by the World Bank and the European Investment Bank.
This backsliding has increased polarisation between investors, with some choosing to divest and others – in recognition of their responsibility as universal owners – doubling down on engagement with the sector. It’s also a sellable GHG product for oil and gas firms.
The California State Teachers’ Retirement System (CalSTRS) educator-only pension fund will oppose corporate directors moving too slowly to achieve board diversity or significantly address climatechange, according to its 2022 voting strategy. . If necessary, we will support a change in leadership to meet these standards.” .
Pension fund makes case for divestment, against backdrop of increasingly positive climate policy across major markets. This conclusion was drawn after several years of engaging in discussions with the fossil fuel industry,” he said, underscoring the need for more “substantial and immediate” actions to combat climatechange.
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. CPPI Investments introduced a climatechange voting policy in March 2021.
Having published a report claiming “bullying” of members by the investor-led Climate Action 100+ (CA100+) coalition, the House Judiciary Subcommittee on the Administrative State, Regulatory Reform, and Anti-trust heard from investor network Ceres, shareholder advocacy group As You Sow and CalPERS – the US’s largest public pension fund.
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.
Climate Action 100+ (CA100+) has increased investor representation on its global steering committee, adding Phoenix Group Head of Stewardship Valeria Piani alongside five others to further expand its geographic experience and expertise.
US SIF Foundation biennial trends reports smaller share of assets managed sustainably, due to methodology, regulatory changes. This is the first time that climatechange has been the top criterion for US asset owners, applied to US$3.96 Managers also reported applying fossil fuel divestment screens across US$1.2
Alante Capital Management is a venture capital fund investing in innovative technologies that address climatechange and enable a resilient, sustainable future for apparel production and retail. Alpha Impact Investment Management Partners. Sustainable and Responsible Impact Investing in the US.
In September, the CMA issued a consultation to help inform its advice to the UK government on how competition and consumer regimes can better support the UK’s Net Zero and sustainability goals, including preparing for climatechange. Limits to power of collaboration. Removing impediments. Removing impediments.
But the government has drawn criticism regarding its ability to achieve agreed climate targets – such as a 100% reduction of greenhouse gas emissions by 2050 compared with 1990 levels – even from its own ClimateChange Committee. In May, a High Court ruling ordered it publish a revised net zero strategy.
By navigating the complexities of SFDR, investors can reduce carbon footprints, support the transition and contribute to a more sustainable future , says Pedro Carvalheiro, Head of Capital M arkets at He avyFinance. Article 9 funds are considered the most sustainable, requiring portfolios with 100 per cent sustainableinvestments.
End of Week Notes While governments struggle to act The COP26 summit in Glasgow underscored two big things for me: One is that the world’s sovereign nations are not yet able to muster a fully coordinated and cooperative response to climatechange, despite the scientific consensus on the causes?—?the the burning of fossil fuels?—?and
While responding to customer or limited partner demand for ESG investments, funds are also looking to ESG-screened investments to outperform other investments because they have identified and better managed macro risks such as climatechange and social unrest. oriented investment funds in 2021. [1]
As global momentum builds behind transition planning, Mark Manning, Senior Visiting Fellow at the London School of Economics, makes the case for a systemic response to the challenges of climatechange. Arguably, we need to be thinking about transition planning as a system response to the challenges of climatechange.”
Earlier this year , a benchmark study warned that several Canadian pension schemes have fallen behind global climate transition progress. However, CDPQ was identified as a climate leader following its decision to divest firms involved in oil production and refining and coal mining in 2022. ‘Green’ assets now make up 12.5%
David Byrns, Portfolio Manager at American Century, explains why transition investing is fundamental to achieving net zero. While global sustainableinvestments reached US$30.3 And while he used climatechange as an example, the strategy is applicable to other sustainability-related issues.
Countries are already dealing with massive movement of peoples due to war and conflict, and now increasingly climate disasters from outside their borders, and within. Countries are already dealing with massive movement of peoples due to war and conflict, and now increasingly climate disasters from outside their borders, and within.
billion in long-term fixed-income securities and $600 million in overnight cash investments managed by BlackRock because of the firm’s commitment to sustainableinvesting. Neither is the broader claim being made by Patronis that climatechange is not a material risk and therefore must be ignored.
Research predicts new demands on asset managers, as clients’ sustainableinvestment priorities mature. Institutional and intermediary clients’ sustainableinvestment demands are growing increasingly sophisticated, requiring managers to reappraise their skills and budget levels. A long way to go”.
Newton reported that engagement is once again the most popular way of considering ESG factors – chosen by 59% of charities, compared to only 27% that prefer divestment. Trustees are also opting to utilise screening, with a modest increase in all types of commonly barred investments, besides armaments. Engagement to the fore.
ESG Investor’s weekly round-up of news about funds designed to meet sustainableinvesting criteria, including HSBC AM, RLAM, LOIM, Algebris Investments and TLEI. . HSBC Asset Management has launched the HGIF Global Emerging Markets Corporate Sustainable Bond fund. We look forward to accelerating our pipeline momentum.”
British businesses with over 500 employees and £500 million in turnover join pension funds with £5 billion or more in assets – and asset managers and insurers with a premium listing – in producing an annual report that explains how they are managing the risks and opportunities presented by climatechange.
This slashes portfolio emissions and sends a strong signal to oil and gas firms about the financial consequences of failing to set out credible transition plans. The writing is on the wall for oil and gas firms. As highlighted by the IEA: there can be no more new oil and gas production if the world is to achieve a 1.5°C C scenario.
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. .
It was largely driven by formalities, and for many investment managers was probably viewed as just another box-ticking exercise. False dawn Things started to change in 2021. Many also signed up to the Net Zero Investment Managers Initiative and the Net Zero Asset Owner Alliance. How does that align with your climate policy?
Paul Lee, Head of Stewardship and SustainableInvestment Strategy at investment consultants Redington, told ESG Investor the proposals should simplify the vote reporting process for both parties.
According to Manning, the FCA is keen to identify regulatory constraints on collaborative engagement, which has been used increasingly by asset owners and managers in recent years, particularly to address systemic environmental risks, such as climatechange and accelerating biodiversity loss.
We organize all of the trending information in your field so you don't have to. Join 5,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content