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For the leaders of the divestment movement, which encourages institutional investors to sell off their shares in fossil fuel companies, winning isn’t everything. But after a decade of determined lobbying, the divest side is suddenly doing a lot of winning. That tally, they noted, is bigger than the combined GDP of the U.S.
Sustainable investments should grow as divestment from carbon-intensive industries intensifies. As a result, we can expect to see personal, political and business incentives tilt in favor of more action to combat climate change. Faster private- and public-sector innovation to get emissions down should follow.
DESCRIPTION: On the heels of COP26, investors are not only thinking about the climate-related risks of companies within their portfolios, but they are also considering whether to make new investments or maintain existing investments in high-emitting companies or countries going forward. SOURCE: Franklin Templeton.
Pledge to divest over next two years follows mounting pressure from protesters. Pensioenfonds Zorg en Welzijn (PFZW) has announced it will stop investing in companies in the fossil fuel sector that do not commit to the Paris Agreement and ambitions outlined at COP26. Setting a 1.5°C
Value chains are global and as such, investors have the unique power to hold companies accountable for child labor practices, environmental degradation and poor governance through divestment or the funding of competitors. At COP26 a major step was taken to globally align ESG reporting, with the creation of the ?
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.
DESCRIPTION: Last year marked a global shift in corporations adopting low-carbon and net-zero pledges as experts at the United Nations Climate Change Conference , COP26, declared that the climate crisis is at a critical inflection point. SOURCE: Antea Group. C commitment and 7,126 companies have joined the Race to Zero.
C increase over pre-industrial temperatures was hanging by a thread at the end of COP26, subsequent economic and geopolitical events appear to have dealt a blow to those ambitions – at least in the short term. The sense of optimism at COP26 turned out to be short lived. “We Beast from the east.
Aviva Investors expressly referred to divestment as a potential strategy to achieve these goals. But he said Blackrock would not pursue a divestment policy from fossil fuels, although the firm would allow clients to do so. Other leading managers were more circumspect in their 2022 outlines.
Reclaim Finance notes a “growing trend” within the investor community to condemn exclusion and divestment from heavy emitters as both “unrealistic and ineffective” tools to decarbonise the economy. Reclaim Finance argues that the most effective investors use the threat of future divestment as a cudgel to enhance their engagement efforts.
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 climate change, despite the scientific consensus on the causes?—?the the burning of fossil fuels?—?and
Alongside the progress of a bill in California calling for fossil fuel divestment by public-sector pensions, and the SEC’s plans for climate-risk disclosures , this new assault on greenwashing moves US policy closer to its European counterparts, where fund disclosure rules are already reshaping the market.
At COP26, the Glasgow Financial Alliance for Net Zero (GFANZ) – an umbrella body which includes the NZIA and other sub-sector groups – announced that firms with US$130 trillion AUM had committed to reducing their financed emissions to net zero by 2050, to achieve the goals of the Paris Agreement.
Covid-19 gave us a glimpse of how assets can be repriced in emissions-intensive sectors and the bounce back bounty in coal and oil and gas has been very unwelcome in fossil fuel divested funds, but none of it matters any more.
Overall, fossil fuel firms’ strategies are still too reliant on asset divestment and unproven technologies, according to a new Carbon Tracker report. BP’s climate strategy was passed yesterday by 88% of shareholders, despite concerns from campaigners that it does not put the firm on a 1.5C
At COP26, the Glasgow Financial Alliance for Net Zero ( GFANZ ) declared a sector-wide commitment of US$130 trillion – a number that has increased over the year to US$150 trillion – of private capital to transition the global economy to net-zero greenhouse gas emissions. On this critical issue, there has been no absence of good intent.
California required SCE and other investorowned utilities to divest the majority of their generation assets beginning in the late 1990s in order to promote competitive energy pricing. Among other things, SCE divested from and terminated all contracts with coal-burning resources and, since 2015, has had no coal in its specified portfolio.
From companies looking to select cleaner manufacturing suppliers, to investors seeking to divest from polluting industries, to consumers making choices about which businesses to patronize, one thing is clear: a reliable way to measure where emissions are coming from is necessary," they wrote.
Australia adopted an economy-wide target of net zero emissions by 2050 in the run-up to COP26. At COP26 in Glasgow, Australia refused to commit to phasing out coal. This explainer looks at the state of play in Australia and the role of investors in accelerating its transition to a low-carbon economy.
International cooperation is the goal of the annual Conference of the Parties (COP) and despite being dismissed as a failure, the final agreement at COP26 emphasized the importance of nature and ecosystems, including protecting forests and biodiversity. trillion in assets, have committed to divest. protect lands and forests.
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