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The sale marks the third time in the last year that OMERS has divested a major fossil fuel asset. . As pension plan members, we’ve been asking OMERS to either demonstrate how its fossil fuel assets have credible decarbonization pathways or divest them. To limit global heating to 1.5°C, And OMERS might finally be listening. .
Clean200 data show that for the large companies that make up 80% of global market capitalization, sustainable revenues and capital expenditures are growing more than twice as fast as all other revenues over the past five years. They include sustainably certified tech hardware, electric vehicles and electric rail equipment.
The proposal follows decisions by the pension funds to divest from fossil fuel reserve owners in their public equities portfolio in 2018, and to exclude upstream fossil fuel investments, including exploration and extraction, in their private markets investments in 2023.
Financial organisations thus have a major role to play in the decarbonisation of the globaleconomy, yet it is estimated that since the Paris Agreement in 2015, the 60 largest banks have instead invested $5.5 They can also divest from high-emitting industries such as thermal coal production. trillion USD in fossil fuels.
As such, the role of fossil fuel energy should diminish as renewable capacity is upscaled. Asset managers also argue that divestment does not work, and that they lose influence when they exit fossil fuel companies.
In 2022, GFANZ identified four strategies necessary for financing a whole economy transition to net zero, which collectively comprise “Transition Finance.” These are defined as financing or enabling: The development and scaling of climate solutions; Assets or companies already aligned to a 1.5
The resources included deep-dive guidelines for seven sectors – including asset owners, asset managers and banks; high-level guidance for 30 sectors of the globaleconomy; and advice on how to undertake a transition planning cycle. At the core of the centre’s thinking is the integrated transition-planning ecosystem.
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% of CDPQ’s total C$452 billion (US$329.7 billion) in AUM.
Charlotta Dawidowski Sydstrand , Head of ESG at AP7, explains how universal owner s can exert collaborative pressure to drive sustainable outcomes in the globaleconomy. This, says Sydstrand, creates a “ripple effect” in the globaleconomy.
To set about tackling deforestation, pension schemes need to develop a focused internal strategy to map and understand deforestation risks. In response to this need, Global Canopy and Make My Money Matter have crafted an interactive guide , providing a ready-made framework for pension schemes.
The ongoing COVID-19 pandemic has brought our globaleconomy to a standstill, with fears of the worst recession since 1929. Economies around the world are reeling from the cascading shocks wrought upon them since the beginning of March. (This post was published earlier this year on Medium. Japan has already planned USD 2.2
In its latest synthesis report , the Intergovernmental Panel on Climate Change (IPCC) issued a “final warning”, calling for swift and decisive action to keep global average temperature rise to <1.5°C Averting this cataclysm requires the reduction of global anthropogenic greenhouse (GHG) emissions to net zero by 2050.
“Unlike previous COPs, you had a group outside of the direct negotiations committing to invest in the condition of our planet in a way that aligned with the requirements to decarbonise the economy.”. That does not mean divesting to ensure the portfolio looks good in the quarterly report.
It is through good stewardship that corporate engagement can drive high carbon emitting companies to develop and implement a net zero transition plan, which will ultimately help to decarbonise the globaleconomy,” says Stephanie Pfeifer, CEO at the Institutional Investors Group on Climate Change (IIGCC). .
These sanctions are intended to “strike at the core of Putin’s war machine” by targeting a broad range of entities in the defense and aerospace sector that develop and produce fighter aircraft, infantry fighting vehicles, electronic warfare systems, missiles, and unmanned aerial vehicles for Russia’s military. 14024, until June 24, 2022.
This increase is a major development for the evolving ESG market. Pretorius and Free agreed and claimed investors will expect even more from companies than mere divestment from non-renewable assets. SOURCE: Nasdaq, Inc. While ESG funds are at all-time highs, increasing by 50% this year to $2.7 trillion, even more investment is needed.
The pact urges countries to make good on their pledge to provide US$100 billion per year for five years to developing countries vulnerable to climate damage. The fossil fuels divestment movement continues to grow and as indicated in a recent report by DivestInvest, 1,500 investment institutions, responsible for $39.2
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