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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.
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.”
Choosing the right method to measure portfolio emissions is crucial to investors’ alignment with the ParisAgreement, and should reflect their strategy. Reasons are manifold but include better risk management, earlier identification of stranded assets, and the realisation that ParisAgreement goals are in jeopardy.
The active investment mandate will identify and invest in companies considered laggards in their climate-related progress, but which have the potential to align with the goals of the ParisAgreement.
Now they must wait to see how signatories to the ParisAgreement act on the commitments outlined in the official response to the Global Stocktake, as well as multiple other pledges announced across the two weeks before that final text was signed, sealed and gavelled. C has not lessened; if anything, it has increased,” he says.
Rooted in these evolving expectations, to further collectively address some of the structural barriers to effective stewardship such as short-termism, information asymmetry, and corporate access, we should encourage better transparency and accountability across the investment value chain. Paris Aligned Investment Initiative.
UK pension schemes will be required to demonstrate alignment with the ParisAgreement from October, but will also be given greater flexibility to make climate-positive investments as well as new stewardship guidance, Work and Pensions Secretary Therese Coffey confirmed today. Paris alignment. degrees Celsius.
For example, an asset manager may have a limited carbon footprint and can appear to be on track to net zero by divesting its high-carbon assets, however such action is effectively passing the problem onto someone else. Some companies may also need to tap into some form of government support.
We are not afraid to be quite assertive towards companies – we see that as our role in the market.” “We are not afraid to be quite assertive towards companies – we see that as our role in the market.” This no-nonsense approach to engagement is not limited to environmental risks.
The last act of the IPCC’s Sixth Assessment Cycle, which started in 2015, the summary will outline our progress, or otherwise, in fulfilling the obligations of the ParisAgreement. He did admit, however, to calling for better data on emissions and transition plans , in the interest of offering informed choices.
Ahead of their expected Q2 publication, the Commission has encouraged organisations to come forward with proposals for sustainability-led cooperation “to inform the policy revision and ensure that guidance can be as concrete as possible”.
The new indicator includes metrics to see whether any emissions reductions have been due to actions such as divestment. While at a corporate level firms might be decreasing their emissions, real economy emissions will increase as the assets continue to be run by a different party.
In our progress report this year [following the new protocol], we hope to have deeper insights on emissions reductions that can be shared ahead of COP28 and the global stocktake of the ParisAgreement,” said Bolli. In 2022, NZAOA introduced a member-led process to review members’ published and report targets on an anonymised basis.
n December 2015, the world took a vital step in tackling climate change by adopting the ParisAgreement. The ISSB is set to publish its long-awaited standards – IFRS S1 and S2 – which will provide general requirements for disclosure of sustainability-related financial information and climate-related disclosures on 26 June.
Data gaps shouldn’t prevent large pension schemes from beginning to measure and disclose the extent of portfolio alignment with the ParisAgreement, said the UK government following its consultation on climate and investment reporting.
It emphasised the importance of trustees raising their climate stewardship ambitions by using Paris-alignment metrics to inform their engagement efforts to ensure they are truly contributing to the goals of the ParisAgreement. . Trustees can then use this information to prioritise specific companies for engagement. .
The trend is towards requiring more and more detailed information.”. Failing to provide information. One challenge is the ability of trustees to obtain the relevant information from asset managers. “These new regulations are likely to be added to in the future,” said Simon Borhan, Managing Associate at Linklaters, the law firm.
Perhaps more encouragingly, almost a fifth of shareholders voted in favour of resolutions calling on ExxonMobil and Shell to accurately disclose the role of asset transfers in their reported GHG emissions reductions, which would stop them claiming CO2 cuts from divestments.
A new report by UK-based NGO ShareAction has highlighted inconsistencies in how 60 assessed CA100+ asset owner and manager members have been reporting on their engagement activities with companies, noting a wide spectrum in the quality of information disclosed and overall transparency. .
And while there are instructive parallels with the catalytic impact of the ParisAgreement on identifying and mitigating climate risks by the private sector, there are also important differences. Hard to ignore Demand for more information is coming from many stakeholders and is getting harder to ignore.
Oil and gas major Shell is under increasing pressure ahead of its annual general meeting (AGM) on 23 May, with asset owners like PGGM and the Church of England Pensions Board announcing their support for a shareholder proposal calling for the company to align its Scope 3 emissions target with the ParisAgreement. Car manufacturer Toyota is facing (..)
Increasingly, discussions in hard-to-abate sectors revolve around determining the points at which policymakers need to intervene and where investors can and should focus their efforts to ensure the best results.
The fund’s strategy includes a commitment to increasing investments in appropriate clean energy and low carbon opportunities, divestment of thermal coal miners and engagement with fossil fuel companies to set net zero targets. Unisuper, a superannuation fund, led Climate Action 100+’s engagement with the steel producer BlueScope.
In a matter of days, more than 1,300 of the UK’s largest companies will be obliged to start disclosing financially material climate information in line with the recommendations set by Taskforce on Climate-related Disclosures (TCFD). EVIC identifies greenhouse gas emissions per market capitalisation of a company including debt at year end.
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 intention is to align its portfolio with the goals of the ParisAgreement. Newsom also was named to a two-year term as co-chair of the Under2 Coalition, a network of states and regions looking to integrate the ParisAgreement goals with a mind to social justice. . On the other side of the U.S., New York Gov.
The framework is accompanied by a draft implementation plan to be used by entities to demonstrate in detail the Paris-alignment of their pledges. A UNFCCC portal will be a single source of information on the pledges and plans of non-state actors, once it has established a process to monitor and analyse net zero alliances and initiatives.
University activists are increasingly citing the oil and gas industry’s targeting of kids in the classroom as another reason to divest from fossil fuels. The divestment solution. Divestment is an increasingly popular approach to combating the fossil fuel industry’s influence. The case for divestment is persuasive.
The final agreement requests parties to come to COP27 next year in Egypt with updated plans on how to slash greenhouse gas emissions by 2030. Under the ParisAgreement, countries were only obliged to update their goals by 2025. trillion in assets, have committed to divest. In a first-of-its-kind lawsuit in the U.S.,
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