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Pressure on creatives: PR, advertising firms targeted by fossil fuel divestment movement. As with the financial divestment movement, there is a valid debate about whether engagement with high-carbon firms that are working to reduce their emissions is more effective than simply severing ties. Michael Holder. Mon, 11/30/2020 - 01:00.
This year, Corporate Knights set out to identify global companies that have decarbonized faster than their peers while simultaneously increasing revenue. But 40% of the reductions came from divesting, or selling off, dirty assets, which from the atmosphere’s perspective is akin to rearranging deck chairs on the Titanic. Other (9%).
Netherlands-based PFZW, one of the largest pension funds in Europe, announced that it has exited its investment in over 300 fossil fuel companies, including Shell, BP and TotalEnergies, over a lack of convincing decarbonization plans, with only seven remaining in its portfolio. billion of securities.
Free acknowledged that while these efforts are important and worthwhile, there needs to be more focus on decarbonization. Fortunately, in the past year, investors have started focusing more on decarbonization and offsets, according to Free. They need to showcase they are having a positive impact on the climate as well,” said Free.
Most of this new capacity will be directed toward decarbonizing industrial emitters such as cement and petrochemicals, and the power sector. The World Bank estimates that a carbon price of $50 to $100 per ton of CO2 is required by 2030 to meet the temperature goals of the ParisAgreement. The divestment movement will wane.
To drive alignment in portfolios – including achieving economy-wide decarbonization and a just transition – an investment strategy should prioritise engagement and stewardship and direct management (where relevant), particularly for existing assets. Paris Aligned Investment Initiative. Mitigation strategies incl.
Engagement and divestment both have a role to play The engagement versus divestment debate has been ongoing in the investor community. That is, by showing up to shareholder meetings and trying to steer portfolio companies toward decarbonization. Companies need transition plans that show capital-expenditure alignment with 1.5°C
The Church of England has announced it will divest from Shell, finally acknowledging the failure of more than a decade of investor efforts to convince the oil and gas sector to align with global climate goals. The respected investor is now divesting from all fossil fuels by the end of 2023 and will no longer try to engage with oil and gas.
The intention is to align its portfolio with the goals of the ParisAgreement. Newsom also was named to a two-year term as co-chair of the Under2 Coalition, a network of states and regions looking to integrate the ParisAgreement goals with a mind to social justice. . On the other side of the U.S., New York Gov.
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