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As the burning of fossil fuels presents us with yet another summer of catastrophic impacts, the pressure is growing for institutional investors to either phase out their oil, gas and coal and pipeline assets or explain how they’re aligned with a safe retirement future for pension members like us. All are OMERS plan members. .
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.
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.
“For me, this was the main outcome from COP26 because it shifted the onus from the politicians and regulators towards the real economy.”. We quickly went from the positivity of COP26 into 2022, which has presented a range of challenges for us all,” said Neil Brown, head of equities at GIB Asset Management. Beast from the east.
Pension funds are confronted with immense pressures such as meeting their liabilities, managing deficits, navigating turbulent globaleconomies, and coping with growing regulatory burdens. California’s proposed divestment laws addresses the systemic risk of climate change, he says. It can be an uneasy relationship.
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