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Divesting from fossil fuels isn’t just good for the planet. billion in returns over the last 10 years by not divesting from fossil fuels. And in 2018, Ireland became the first country to divest its national investment fund completely from fossil fuel companies. It can be good for financial returns, too.
Even if such disclosures are voluntary from a regulatory perspective, the information is critical for asset managers, especially now that they need to report their own portfolio emissions on ESG-labelled funds. That is, by showing up to shareholder meetings and trying to steer portfolio companies toward decarbonization.
for more information. Information Technology 48. Cement carbon laggards Companies in the cement industry that were divested by NBIM. Prisons Company is recommended for divestment by the Investigate project of the American Friends Service Committee. 1 Apple Inc United States Information Technology. Industrials 57.
Over time, TCCR and other NGOs pressed for maximizing the access of shareholders and other stakeholders to information, shifting the emphasis from corporate responsibility to social accountability. The role of investors in improving access to verifiable information is also critical. Both divestment and shareholder action have a role.
MAS Managing Director Ravi Menon said: “Indiscriminate divestment from carbon-intensive activities will not get us to a net-zero world. According to MAS, withdrawing financing, insurance or investment from higher climate risk-exposed companies with credible transition plans could deprive them of the financing needed to decarbonize.
Nearly all of these major investors say that they are “engaging” with high-carbon investees in their portfolios in order to advance net-zero, setting this up as a binary choice against divestment. In this way, engagement and divestment are not binary choices but complementary steps along a continuum, designed to be effective.
The industrial sector accounts for 52 companies on the list , followed by information technology (32), and consumer discretionary and materials (29 each). . $10,000 invested in the Clean200 on July 1, 2016, would have grown to $29,090 by January 29, 2025 , versus $17,670 for the MSCI ACWI/Energy benchmark for fossil fuel.
In 2016, we created the Clean200 in response to investors saying, ‘If we divest fossil fuels, there is nothing to invest in.’” Although they underperformed the MSCI ACWI broad market index, which grew 114.4%, the Clean200 trounced the key index of global fossil fuel companies (the MSCI ACWI/Energy Index), which gained only 64.5%
It is easy to generate a letter with specific information to your Super Fund. I added substantially more contextual information to my email. But a short personal note with reasons on the necessity for divesting for our future can also have an impact.&
This paper, to my knowledge, is the first attempt to try to quantify biodiversity information in such a complete way,” judge Brian Bruce says. The authors view divestment as a form of voice, with disinvestment pledges resonating with boards, customers, employees, and stakeholders, especially via social media.
And citizens and consumers will have the kind of granular information they need to more effectively target the decision-makers and brands standing in the way of a sustainable future. Sustainable investments should grow as divestment from carbon-intensive industries intensifies.
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.
More than half of divestments by Norges Bank Investment Management (NBIM) last year were the result of unacceptable social and governance-related risks. This can escalate action to voting, and, when necessary, resort to risk-based divestment. trillion in assets under management (AUM). trillion in assets under management (AUM).
To divest or not to divest? Another is establishing the liquidity levels of those investments which enable rapid divestment. Many began the divestment process because of evidence of systematic human rights abuses and corruption led from the very top. However, allocators’ work does not end there. billion (£2.3 billion (£2.3
Achieved through marginal changes in portfolio allocations and the opportunistic divestment of just a few stocks, such reductions can be used to present an unjustifiably favourable image of the environmental credentials of a portfolio. The post Divested Interests? We propose instead the use of a broader, forward-looking set of metrics.
This divestment represents a very attractive purchase price and allows us to focus on our core agricultural business and the successful implementation of our Crop Science Division growth strategy,” said Rodrigo Santos, Member of the Board of Management of Bayer AG and President of the Crop Science Division. billion U.S. dollars (2.4
Starting in 2024, the Office of the Superintendent of Financial Institutions (OSFI) will require federally regulated banks and insurance companies to start collecting information on their CO2 emissions and climate risks for annual disclosure beginning in 2025. OSFI rejected both suggestions.
billion in divestment from banks backing the project and nearly $1.4 trend; Indigenous peoples around the world are fighting to enforce their rights, especially the right to free, prior, and informed consent to projects on their land — a concept enshrined in the United Nations Declaration on the Rights of Indigenous Peoples.
Through this engagement, we learned best practices from an industry leader and will use this information with other producers to contextualize the risks facing the industry. For more information, please visit franklintempleton.com and follow us on LinkedIn , Twitter and Facebook. It potentially exacerbates it. About Brandywine Global.
For the report, ShareAction examined the governance and stewardship practices of the world’s largest 77 asset managers, with a combined $77 trillion in assets under management, across Europe, the Americas and Asia Pacific, based on data from surveys as well as publicly available information.
The survey also examined areas in which investors were seeking sustainability-related information, with 76% reporting that it is important for companies to report on the cost of meeting their sustainability commitments, and 74% looking for reporting on the roadmap to meet those commitments.
The long lag it takes to calculate this information today is untenable if countries and the corporate sector hope to act quickly, the group wrote in a blog about the initiative, co-authored by Gore and Gavin McCormick, founder and executive director of coalition member WattTime.
The divested business is set to operate as an independent company called Envu. For additional information, visit the Envu website. For more information, go to www.bayer.com. Bayer will use the net proceeds from the transaction to reduce its net financial debt. Envu’s portfolio consists of over 180 trusted and well-known brands.
This backsliding has increased polarisation between investors, with some choosing to divest and others – in recognition of their responsibility as universal owners – doubling down on engagement with the sector. It is a tool for evaluating risk in the portfolio and help us make informed decisions.”
They have to ensure that sustainability considerations don’t just inform what they do, but that they drive corporate decision-making. Take the decision we took to launch our unique Green PremiumTM program in 2008 to provide more sustainable products and be transparent with environmental information with our customers.
Launched in 2020, the framework quantifies physical and transitional risks within investment portfolios across a variety of climate scenarios, utilising machine-learning technology to collate relevant publicly available information, identifying companies failing to address climate-related risks.
When environmental regulations, such as the NAAQS, come into effect, investors know it means their companies will take a hit — so, they divest. I found no difference in divestment behaviour between ESG mutual funds and more traditional funds. This sell-off can be big. of their stock in that company. But that wasn’t the case.
This step will help you identify the riskiest physical locations and products to divest from and access public incentives. You can also divest from risky assets and manage risk within the supply chain. Investments from the community can be made in a way that benefits everybody.
The final step of escalation is divestment, with Aviva Investors stating it is “committed to full divestment of targeted companies that fail to meet its climate expectations”. Mirza Baig, Global Head of ESG Research and Stewardship at Aviva Investor, described divestment as the “ultimate sanction”. Wihlborn said.
Yet the increased level of transparency, disclosure and accountability and third-party assurance to enforce it, while good for investors, creates a range of new challenges for companies reporting ESG information and for the investors tracking them.
Additionally, businesses across all sectors can be in a state of disruption at any time due to operational changes in process or technology, corporate changes from mergers or divestments and global changes from politicians and trade wars. For these reasons and more, mainstreaming conservation into corporate operations can be challenging.
Canadian pension fund to eschew “blanket divestment”, emphasising role as “active investor and influencer”. Blanket divestment is not the best way to maximise returns without undue risk of loss. And it isn’t the way that we as active investors have maximised our returns over time.”.
The transaction includes the divestment of Bayer’s West Sacramento Biologics Research & Development site, and its internal discovery and lead optimization platform. For more information, go to www.bayer.com. For more information, visit www.ginkgobioworks.com. billion euros. billion euros. About Ginkgo Bioworks.
We will continue to provide investors the information and products they need to make sound investment choices, including products designed to meet net zero objectives.”.
We also intend for the Happiness Returns Framework to inform practical decisions which require a level of specificity. This allows the fund to make better-informed decisions regarding where to invest to achieve positive effects on societal well-being. The assessment also informs portfolio decisions (i.e.
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.
Pension scheme says country’s new framework will support its net zero strategy; asserts that divestment of fossil fuels amounts to “passing the buck ”. Engagement over divestment The Canadian Pension Climate Report Card , which benchmarks schemes’ decarbonisation efforts, criticised HOOPP for lack of ambition in January.
This includes requirements to provide country-by-country reporting of financial, tax and worker information. They should publish country-by-country reporting of tax and financial information, in line with international standards, such as the GRI Tax Standard.
The engagement programme thus far has been “constructive”, NBIM’s board claimed in December, adding that the companies have “expressed an ambition to divest the relevant assets in the Niger Delta”. This includes engaging with the local communities to address past and present oil spills before exiting the region.
Consumers need the right information to make decisions,” said Sadan. Sadan also advised that in order to affect change on firms’ ESG practices, investors need to engage over the long term rather than divest investment. I really want you to make sure that this is not about just divestment. Our job is to protect consumers.
Investors continue to suffer from poor-quality climate-related information in company reports and other statements, particularly from firms with the highest CO2 emissions. Only eight, or 6%, received ‘partial’ scores by providing all the information required by the CAAA methodology for at least one of the seven metrics used to assess them.
The company routinely posts important information on its website – www.o-i.com/investors. countries, O-I achieved net sales of $6.4 billion in 2021. Learn more about us: o-i.com /? Facebook / Twitter / Instagram / LinkedIn. i.com/investors. Forward-Looking Statements .
But this is a way to put pressure on Amazon that you also see in resolutions at their annual general meetings (AGMs).” Earlier this year, Danish pension fund PBU divested Amazon over issues with labour rights after five years of engagement. We’re totally aware of that.
Engagement with consequences PGGM will use the findings of the report to inform its engagement efforts and its voting decisions. Over the past 18 months, PFZW divested 192 oil and gas companies that did not show a sufficient willingness to transition towards an energy company aligned with the goals of the Paris Climate Agreement.
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