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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.
Pressure on creatives: PR, advertising firms targeted by fossil fuel divestment movement. Airlines have faced "flygskam" — or flight shame — which has seen some travelers shun air travel, heightening pressure for the sector to demonstrate that it can develop a flight path to net-zero emissions. Michael Holder.
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. And OMERS might finally be listening. . To limit global heating to 1.5°C,
With the long-term goal of netzero in mind, it may be tempting for investors to focus on capitalizing ESG trailblazers over ESG laggards. Engaging for NetZero. By 2040, the company aims to be netzero and expects their carbon management business will overtake their traditional business.
Sustainability disclosure is the new normal Around the world, policies and regulations requiring companies to disclose their emissions and sustainability metrics have advanced at varying rates and to different stages of development, from barely nascent to quite mature.
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. C commitment and 7,126 companies have joined the Race to Zero. SOURCE: Antea Group.
Vanguard, one of the largest investment managers in the world, announced today that it is withdrawing from the NetZero Asset Managers initiative (NZAM), a major multi-trillion dollar group of investment managers committed to supporting the goal of netzero greenhouse gas emissions by 2050.
Consider this: In April, Royal Dutch Shell, one of the largest companies in the world, announced its intent to become a net-zero carbon company by 2050. Prices to frack a new well vary widely, depending on whether you’re drilling in West Texas or horizontally to frack under housing developments, varying from $40 to $90 a barrel.
Divestment from fossil fuels is accelerating around the world. Besides dozens of universities (including Harvard and the University of Toronto), the divestment list now includes France’s Banque Postale, the State of New York, and Europe’s largest pension, ABP. These developments are critical.
and I know insurers are going to be wary about that,” says Jason Thistlethwaite, a professor at the University of Waterloo’s School of Environment, Enterprise and Development. Divest now for tomorrow For insurance companies that are big institutional investors, that has also meant divesting their holdings in oil, gas and coal projects.
Change is already underway within the fossil fuel industry, as developments in the Netherlands, United States and Australia indicate. Set a target The Science Based Targets initiative ( SBTi ) has developed guidelines on setting science-based targets (SBTs) for the financial sector that require the inclusion of financed emissions.
Google, Microsoft, and, a few weeks ago, IBM have all come out with a commitment to 24/7 traceability of their clean energy purchasing to meet their NetZero goals. This in turn pushes up demand and as a result, traceability will speed the development of more cheaper and cleaner energy sources. Cheaper’ always finds a way.
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.
Investors that have set netzero targets for their portfolios have been cautioned to carefully evaluate their positions in majority state-owned oil and gas laggards. According to the report, it has the fourth most credible netzero targets of the 25 firms.
Regulators will soon provide investors with clearer guidance on the acceptable boundaries of collective action to achieve netzero and other sustainability objectives, according to competition lawyers. Competition barriers to collective sustainability initiatives by investors expected to be lowered. Limits to power of collaboration.
UAE-based clean energy-focused developer Masdar announced plans to acquire renewable power company Saeta Yield from Brookfield Renewable together with its institutional partners, for an implied enterprise value of US$1.4 gigawatt (GW) development pipeline.
Every company and every industry will be transformed by the transition to a netzero world.”. More than 1,000 companies have now committed to a net-zero-emission target in line with a 1.5°C To date, financial firms have pledged that more than US$130 trillion of assets will be net-zero by 2050. Source: CK) 1.
Others suggested taking inspiration from the green bond markets to develop European defence bond frameworks for funding projects of high strategic importance to European sovereignty. These can boost investment not only in defence, but also other critical objectives including the netzero transition.
C, and investee companies are not yet facing full scrutiny of their netzero transition strategies, posing challenges for institutional investors committed to decarbonising their portfolios in line with the Paris Agreement. Others might set a target for some or all portfolio companies to be netzero aligned by 2030.
KLA Commits to Cut Emissions in Half by 2030, Reach NetZero by 2050. HH Global Ramps 2040 NetZero Goal to 90% Emissions Reduction. Firmenich Commits to NetZero Emissions by 2039, Climate Targets Approved by SBTi. Renewable Energy Developer Arevia Power. RWE Acquires Polish PV Developer Alpha Solar.
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 Sustainable Investing for Asia at Manulife Investment Management. . There’s ultimately a place for both engagement and divestment,” said Nietsch. “If Multi-year effort .
TotalEnergies has set a climate goal to achieve netzero emissions by 2050, and the company said that its focus is first to avoid emissions, and then to reduce them asset by asset, implementing the best available technologies, and to develop industrial projects for carbon storage to address residual emissions. Gulf Coast.
Originally posted on GFANZ on September 19, 2023 The Glasgow Financial Alliance for NetZero (GFANZ) Secretariat today launched a consultation on its work to further refine the definitions of its transition finance strategies and support financial institutions to forecast the impact of these strategies on reducing emissions.
Timing and influencing the market are vital considerations for asset owners when divesting ESG assets. Since the success of the South African apartheid divestment campaign in the 1980s, investors must contend with similar pressure on other ESG issues, such as the growth of campaigns encouraging them to exit fossil fuels or tobacco.
Similarly, Accenture has found – as exemplified by assessing the 1,000+ largest listed European companies – that the vast majority are not on track to hit their netzero climate goals. Reaching netzero. Still however, there is no standardisation on how to evaluate and validate forthcoming targets.
“Our long-term return will depend on how the companies in our portfolio manage the transition to a zero emissions society.” . The fund will be engaging with all portfolio companies and asking for science-based short-term, medium-term and 2050 netzero targets.
Chris Skidmore, former MP and author of the netzero review, talks about what the next UK government should do to get the country’s netzero commitments back on track. “I cannot vote for the [Offshore Petroleum Licensing] bill next week. In May, a High Court ruling ordered it publish a revised netzero strategy.
billion green bond to build new netzero chemical plant, and more. Billion Green Bonds to Fund New NetZero Chemical Plant Private Equity & Venture Capital Industrial Decarbonization Startup Celadyne Raises $4.5 Billion to Build Gigafactories Across Europe Dow Issues Inaugural $1.25
Other commitments in the plan include implementing a climate transition investment framework, integrating climate risk and opportunity assessments into its investment strategy and joining the UN-convened NetZero Asset Owner Alliance (NZAOA). . Multi-pronged climate engagement .
The Canadian Pension Climate Report Card acknowledged that most funds had made “measurable progress” in developing climate-aware investment strategies. A spokesperson said CPP Investments would continue to invest in and exert its influence in the whole economy transition as active investors, rather than through “blanket” divestment. “We
The Institutional Investors Group on Climate Change (IIGCC) has launched a new toolkit to help asset owners and managers enhance their stewardship practices when engaging with companies on their progress transitioning to netzero greenhouse gas (GHG) emissions. . Engagement over divestment .
Pension scheme says country’s new framework will support its netzero strategy; asserts that divestment of fossil fuels amounts to “passing the buck ”. HOOPP aims to engage with investee companies to reduce their carbon emissions “brick by brick” and views divestment as “passing the buck”, said Wissell.
Many of the potential building blocks are already in place, suggested Ellis, adding that existing sector-specific nature-positive pathways, such as those developed by the World Business Council for Sustainable Development , needed to be translated to local requirements.
Asset managers should divest from fossil fuel companies that are proving resistant to influence and concentrate their finite engagement resources on those which can plausibly be influenced,” the paper noted.
The NetZero Industry Act (NZIA) , designed to accelerate investment in the clean energy transition, included proven renewable technologies like wind and solar, but also other innovations that have yet to deliver at scale, such as carbon capture and storage (CC S).
From its net-zero by 2030 ambition and the development of science-based targets to its energy efficiency programs to transportation and waste minimization goals, Powering Progress embodies PSEG’s aspirations for today and ensures it will be here to support communities into the future.
The Financial Conduct Authority’s decision to halt the development of an effectiveness metric undermines systemic stewardship, says Gustave Loriot-Boserup, Founder of Compass Insights. Many also signed up to the NetZero Investment Managers Initiative and the NetZero Asset Owner Alliance. A – Stewardship.
This is anchored in our comprehensive net-zero science-based targets and an ambitious impact plan for 2025 that includes saving 800 million tons of CO2 emissions for our customers by that time. The demand from them for sustainability advice has never been higher – and we’ve developed our talent base and capabilities accordingly.
The protocol outlines how the 84 alliance members, with a collective US$11 trillion in assets, can align their sub-portfolio decarbonisation targets with netzero. From 2023 onwards, members are also being asked to set decarbonisation targets on new commercial real estate loans, reporting on progress from 2024.
Three years earlier, Rathbones had signed up to the Principles for Responsible Investment (PRI), which he had helped develop. Divestment option Despite the headway being made with engagement, many large asset owners still opt for other solutions. Divestment has been a recurring theme across Crossman’s two-decade career.
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.
David Byrns, Portfolio Manager at American Century, explains why transition investing is fundamental to achieving netzero. But the range of transition planning frameworks being developed to support organisations on their path to netzero is inevitably driving demand for assets turning from brown to green.
Pension fund makes case for divestment, against backdrop of increasingly positive climate policy across major markets. In response, PME has divested from fossil fuel investments and redirected the funds towards the energy transition by focusing on solar and wind projects.
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