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Now they must wait to see how signatories to the ParisAgreement act on the commitments outlined in the official response to the Global Stocktake, as well as multiple other pledges announced across the two weeks before that final text was signed, sealed and gavelled. C has not lessened; if anything, it has increased,” he says.
For existing investments, UPP is prioritising active engagement over divestment, partly due to the complexity of the challenges facing firms in different sectors. . Multi-pronged climate engagement . It’s not just the supply side that needs to decarbonise, but the demand side, too.
Regulatory updates and lack of clarity on the definition of “sustainable investment” have left some fund managers hesitant to pursue Article 9 funds. These challenges highlight the need for further clarification and a more comprehensive review of SFDR to provide stability and confidence to the market.
And while there are instructive parallels with the catalytic impact of the ParisAgreement on identifying and mitigating climate risks by the private sector, there are also important differences. Nietsch agreed: “Nature issues tend to be so complex and systemic that divestment may have less of an effect than it might for climate.
She argued that because there is no standardized definition for sustainable investment, it is harder to determine which ESG initiatives are causing a net change for the good. Pretorius and Free agreed and claimed investors will expect even more from companies than mere divestment from non-renewable assets. said Free.
In June that year Texas Republican Governor Greg Abbott signed into state law one of the country’s first pieces of anti-ESG legislation, requiring state entities – including pension funds – to divest from companies that boycotted fossil fuel and firearms. Since then, anti-ESG legislation has become a craze among Republican-controlled states.
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