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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.
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.
We had developed a strong methodology of research and engagement with companies, regulators and governments for work on a range of issues. For example, we developed a significant investor presence on issues of forest land management. The “clean hands” approach of divestment best expressed the moral outrage of activists over apartheid.
The award, which recognizes high-impact research in sustainable finance, was presented to Stefano Giglio (Yale School of Management), Theresa Kuchler (NYU Stern), Johannes Stroebel (NYU Stern), and Xuran Zeng (NYU Stern). So quantifying biodiversity risk is paramount.
This week in ESG news: Microsoft launches new multi-framework ESG reporting solution; Goldman Sachs exits Climate Action 100+ as political pressure builds; World Bank issues bond with interest linked to reforestation-based carbon removals; GM signs its largest-yet renewable energy deal; Texas expands its divestment list of financial companies “boycotting” (..)
Role of active stewardship across environmental and social themes emphasised at ESG Risk & Investment Asia 2022. . 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 SustainableInvesting for Asia at Manulife Investment Management. .
See below for the highlights of the past week, and get all your ESG news at ESG Today: Sustainability Goals, Initiatives and Achievements. Florida Bans ESG Investing in $228 Billion State Pension Funds. Texas Places BlackRock, Credit Suisse & UBS on Divestment List for “Boycotting” Fossil Fuel Companies in Anti-ESG Backlash.
Sustainableinvestment opportunities and risks are slowly beginning to emerge as Europe outlines its plans to rearm. But some called for a more fundamental reboot of investment in European innovation especially in clean technologies to pursue trajectories that are compatible with its climate transition targets.
Larry Fink, the CEO of the largest investment firm in the world, wrote in his 2022 letter to CEOs: “It’s been two years since I wrote that climate risk is investment risk. Sustainableinvestments have now reached $4 trillion. Cement carbon laggards Companies in the cement industry that were divested by NBIM.
Renewables Developer Avantus Renovare Raising $7.5 Million to Turn Landfill Waste into Renewable Biofuels ESG Investing Texas Pulls $8.5 Billion From BlackRock Over ESG Investing BlackRock Calls Texas Decision to Divest $8.5 Million to Turn Landfill Waste into Renewable Biofuels ESG Investing Texas Pulls $8.5
Financial organisations thus have a major role to play in the decarbonisation of the global economy, yet it is estimated that since the Paris Agreement in 2015, the 60 largest banks have instead invested $5.5 Clearly much more needs to be done to pivot towards more sustainableinvestment and lending practices.
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.
This represents a significant number of funds that may need to consider either divesting from the stocks or rebranding. Our research shows that more than 1,600 funds are exposed to at least one stock potentially in breach of activity-based exclusion rules.
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.
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. This achievement was one of several high points in the pension fund’s 2023 sustainableinvesting (SI) report , published in April.
The net zero race The former MP also emphasised the importance of the Global Stocktake , and the development of new nationally determined contributions (NDCs) under the Paris Agreement, which need to be submitted by 2025 with detailed sectoral commitments.
As a result, companies, funds and investment managers developing and implementing ESG policies and programmes must understand and navigate this increasingly complex legal landscape. For instance, Illinois enacted the Illinois SustainableInvesting Act in 2019. Legislators in New Jersey have introduced a similar bill.
The framework will form part of the UK’s Sustainability Disclosure Requirements (SDRs), the UK’s equivalent of Europe’s Sustainable Financ e Disclosure Regulation (SFDR). Sadan also advised that in order to affect change on firms’ ESG practices, investors need to engage over the long term rather than divestinvestment.
Both were speaking at a panel session on putting net zero commitments into practice on the second day of the event, hosted by the UN-convened Principles for Responsible Investment (PRI) this week in Toronto, Canada. of CDPQ’s total C$452 billion (US$329.7 billion) in AUM.
The International Energy Agency estimates that US$1 trillion a year to 2050 will need to be spent in developing economies to achieve net-zero GHG emissions. Yet, many institutional investors remain reticent to invest in developing economies. In 2022, only 2% of impact funds were focused on EMs, representing just 0.1%
David Byrns, Portfolio Manager at American Century, explains why transition investing is fundamental to achieving net zero. While global sustainableinvestments reached US$30.3 Best-in-progress approach American Century launched a new strategy called Global Sustainable Value in November 2023. “The
Research predicts new demands on asset managers, as clients’ sustainableinvestment priorities mature. Institutional and intermediary clients’ sustainableinvestment demands are growing increasingly sophisticated, requiring managers to reappraise their skills and budget levels.
They were the culmination of two years’ work, including the TPT’s Disclosure Framework, published in October to help companies develop robust transition plans as part of their annual reporting. At the core of the centre’s thinking is the integrated transition-planning ecosystem.
Better Ventures builds on a decade of experience to back founders leveraging scientific breakthroughs and emerging technologies in service of the UN’s SustainableDevelopment Goals. FullCycle Climate Partners invests in growth stage companies with developed climate-critical infrastructure technology. Better Ventures.
Earlier at the conference, Zheng Zeguang, Ambassador from the People’s Republic of China to the UK, observed that the two countries should “step up policy coordination” on green finance and support green and low-carbon development. . Collaborative mindset . Engagement is just one piece of the puzzle. Data tools . C,” he said.
Article 9 funds are considered the most sustainable, requiring portfolios with 100 per cent sustainableinvestments. The advantages of Article 9 funds lie in their ability to provide clear signals to investors regarding their commitment to sustainability.
All were quick to acknowledge the progress made since the last time such sustainableinvestment get-togethers were done face to face. To divest from carbon-intensive firms without understanding their future plans, she warned, risked a “paper decarbonisation”, rather than real reductions in carbon emissions.
As more and more institutions and people are divesting from fossil fuels globally, climate responsible finance is booming. Part of this revolution is the meteoritic growth of green bonds, which were started in 2007 by the World Bank and the European Investment Bank. Of course, not all green bonds are necessarily green, or sustainable.
Pomfret, who has held roles at Bloomberg and Allianz Global Investors, notes that at COP27 forced migration wasn’t a topic, despite emerging conversations on its role in climate adaptation to tackle labour shortages in developed countries. “We saw lots of conversations about what loss and damage look likes.
In May , Phoenix Group became the CA100+’s new Shell co-lead, following the Church of England stepping back from engagement after five years and divesting from the oil and gas giant the following month.
Bolli was co-lead author of the protocol report, alongside Udo Riese, Global Head of SustainableInvesting at Allianz Investment Management. The latest edition of the protocol for members includes targets on private assets and outlines ways to report on sovereign bond emissions.
Pillars of the post-WW2 global financial system are not yet on the same page for climate risk and sustainabledevelopment. The measures serve as a reminder of the long-term consequences of the invasion, for human rights on the ground, and for business and investment ties further afield. 0.25% of GDP growth and an additional 0.1-0.4%
ESG Investor’s weekly round-up of news about funds designed to meet sustainableinvesting criteria, including HSBC AM, RLAM, LOIM, Algebris Investments and TLEI. . HSBC Asset Management has launched the HGIF Global Emerging Markets Corporate Sustainable Bond fund.
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. We pursue a strategy of engagement rather than divestment. Q – You have recently increased your exposure to several oil and gas companies.
Meanwhile in the asset management sector, Legal & General Investment Management said it would divest from Russian sovereign debt and the manager has reduced total exposure to 0.1% of AUM or £1.3 billion. .
In the UK, the Competition & Markets Authority (CMA) gave detailed guidance in January 2021 to businesses and trade associations on the treatment of sustainability agreements under UK competition law. Removing impediments.
Paul Lee, Head of Stewardship and SustainableInvestment Strategy at investment consultants Redington, told ESG Investor the proposals should simplify the vote reporting process for both parties.
An accompanying story by Reuters tells us that Blackstone recently hired five managers to beef up its internal ESG team as the firm moves to drive sustainability and diversity across its broad portfolio of holdings. What about P/E and sustainability? . For information on The Blackstone Group’s sustainability journey: [link] org/.
– Fears about AI went up another notch this week, with bigtech insiders questioning whether the firms developing the technology (or indeed regulators or policymakers) can erect the necessary guard rails to control their creations and avoid potential social harms.
According to Reuters, environmental groups are calling for “robust rules in the textile-specific standards currently in development under the EU’s Corporate Sustainability Reporting Directive (CSRD).” For more information , view the full newsletter here.
Between 2007 and 2019, Exxon delivered less than 1% in shareholder returns (capital gains and dividends) per annum, around 10% in total over the 12-year period, the report noted. This slashes portfolio emissions and sends a strong signal to oil and gas firms about the financial consequences of failing to set out credible transition plans.
The review factored in the implications of UK market abuse regulations and developments in competition law in major jurisdictions. The SDR proposals recognise the role of stewardship as a legitimate part of a sustainableinvestment strategy, with the inclusion of the sustainable improvers category,” said Manning.
Additionally, there will be ongoing development of new green assets, including renewable energy,” Richard Manley, Chief Sustainability Officer at CPP Investments, tells ESG Investor. Later this year, the TPT aims to finalise its disclosure framework and implementation guidance and will develop sectoral guidance.
Investors want greener options and are willing to pay for it — since 2020 sustainabilityinvestments have increased 63%. Market regulator Hong Kong Exchanges and Clearing, with a $6 trillion market capitalisation, now requires issuers to disclose their environmental, sustainability and governance scores. billion annually.
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