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EE: There’s a general concern about greenwashing and the dissonance between what many companies say they believe about ESG issues and what they are actually doing. Do you feel corporate greenwashing has increased or decreased from the 1970s and ’80s? Both divestment and shareholder action have a role.
along with ongoing corporate greenwashing and fossil-fuel disinformation, it’s sometimes hard to tell if society is moving forward or slipping back. In 2016, we created the Clean200 in response to investors saying, ‘If we divest fossil fuels, there is nothing to invest in.’” You follow the money, of course. through those years.
Carbon Tracker surveyed companies from the fossil fuel, mining, manufacturing, automotive and technology sectors that are targeted for engagement by the investor-led Climate Action 100+ initiative. She added: “Investors may choose not to divest. Potential evidence of greenwashing. Start penalising auditors”.
Ninety One has been among the first joiners of the World Benchmarking Alliance’s call on asset managers to review their approach to sustainable investing to ensure it does not unintentionally lead to divestment from EMs. He reported that many original equipment manufacturers want to be more vertically integrated.
ESG investing has had to overcome numerous challenges, ranging from investor caution to multiple cases of greenwashing. It contrasted the negative performance against benchmarks resulting from divestment from fossil fuel firms with the positive relative returns achieved by funds not exposed to the sector in Q1 2020.
The Impact Investing Principles have been really helpful, especially given the increased scrutiny of funds and concerns over greenwashing. London CIV has recently signed up to the Impact Investing Institute’s (III) Impact Investing Principles for Pensions , co-created with Pensions for Purpose. Impact through stewardship.
The increased scrutiny over greenwashing is necessary, and will provoke the market to favor substance over style. The divestment movement will wane. The US is poised for a breakout year due to the combination of new EV manufacturing capacity and a refreshed federal tax credit but will still lag Europe and China.
And the mayors of 12 cities — representing 36 million residents — announced their plans to divest from fossil fuels. The RE100 , which represents more than 260 companies committed to using 100 percent renewable power, added new signatories including Intel , ASICS (the apparel company), pharma firm Sanofi and manufacturers SKF and VELUX. .
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