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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.
UK-based financial services group NatWest has been added to a list of financial companies published by the Texas Comptroller’s office that may be subject to divestment by the state’s pension funds for “boycotting” oil and gas companies. Energy Information Administration (EIA). Texas is the largest net energy supplier in the U.S.,
JPMorgan Chase, BlackRock and Citigroup were among a list of financial companies informed that they face potential divestment by Kentucky state government entities unless they stop “boycotting energy companies,” according to a statement released Tuesday by Kentucky State Treasurer Allison Ball.
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.&
Claims ESG investors “push a social and political agenda shrouded in secrecy” Investment and finance giants BlackRock, Credit Suisse and UBS are among a list of ten financial companies published by Texas as subject to potential divestment for boycotting energy companies. Energy Information Administration (EIA).
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.
Likewise, companies in all sectors have been rushing to divest of holdings in Russia , or halt operations there. This piece examines sanctions and corporate divestments through a slightly more sceptical lens. We are not arguing that divestment is or is not the right course of action for companies to take.
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).
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.
Texas Attorney General Ken Paxton announced that the state has banned UK-based bank Barclays from participating as an underwriter in Texas’ municipal bond market, following the company’s failure to respond to requests for information over its ESG policies. Energy Information Administration (EIA).
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.
Pretorius and Free agreed and claimed investors will expect even more from companies than mere divestment from non-renewable assets. Beyond divestment, “emissions can be reduced by funding greener companies on public and private markets, but also on fixed income markets, sustainable bonds, green bonds, etc.” said Free.
The new emissions disclosure bill was introduced as part of a package of climate-focused proposals, including a bill requiring state pension funds to divest from fossil fuel companies introduced by Senator Lena Gonzalez, and a bill requiring stronger corporate climate risk disclosure introduced by Senator Henry Stern.
Florida recently passed a resolution to no longer allow ESG considerations to be used by fund managers for its $228 billion of pension funds, and Texas publishing a list of fund slated for potential divestment from its pension funds, due to their strong ESG credentials and support for net zero investing and advocacy.
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.”
In a statement announcing the launch of the lawsuit, Skrmetti said: “We allege that BlackRock’s inconsistent statements about its investment strategies deprived consumers of the ability to make an informed choice. who have accused the firm of following a social agenda, or of “boycotting” and working to harm energy companies.
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.
There are a number of avenues for collaboration through industry initiatives, such as information sharing and building frameworks, she added. Such transparency has not been enough to stop some asset owners divesting from Shell in recent years, including the Church of England Pensions Board and Dutch pension providers PFZW and ABP.
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.”.
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.
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