This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
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.
All commercial investment products derived from The Clean200 require a licence. for more information. Larry Fink, the CEO of the largest investment firm in the world, wrote in his 2022 letter to CEOs: “It’s been two years since I wrote that climate risk is investment risk. Information Technology 48. 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.
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. Sustainableinvestments should grow as divestment from carbon-intensive industries intensifies.
The award, which recognizes high-impact research in sustainable finance, was presented to Stefano Giglio (Yale School of Management), Theresa Kuchler (NYU Stern), Johannes Stroebel (NYU Stern), and Xuran Zeng (NYU Stern).
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.
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.”
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.
Louise Wihlborn, SustainableInvestment Analyst at Aviva Investors, told ESG Investor that this year the firm will continue to increase the stringency of its escalation action, particularly with poorer performers. “We believe robust, persistent engagement can be a powerful agent for change.” Wihlborn said.
The framework will form part of the UK’s Sustainability Disclosure Requirements (SDRs), the UK’s equivalent of Europe’s Sustainable Financ e Disclosure Regulation (SFDR). Consumers need the right information to make decisions,” said Sadan. I really want you to make sure that this is not about just divestment.
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.”.
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. This achievement was one of several high points in the pension fund’s 2023 sustainableinvesting (SI) report , published in April.
Research predicts new demands on asset managers, as clients’ sustainableinvestment priorities mature. Institutional and intermediary clients’ sustainableinvestment demands are growing increasingly sophisticated, requiring managers to reappraise their skills and budget levels.
Its communication on a ‘ competition policy fit for new challenges ’ promised “guidance and legal certainty to enable cooperation” in pursuit of sustainability, within updates to its horizontal block exemption rules. Removing impediments.
Following this year’s proxy season, the UK Asset Owner Roundtable has invited asset managers to have a “constructive dialogue” with its members to improve alignment on climate-related engagements with investee firms.
Climate change is the leading issue being addressed by US asset owners that incorporate ESG factors into their investment decisions, according to the US SIF Foundation’s latest biennial Report on US SustainableInvesting Trends. Managers also reported applying fossil fuel divestment screens across US$1.2
Bolli was co-lead author of the protocol report, alongside Udo Riese, Global Head of SustainableInvesting at Allianz Investment Management. The latest edition of the protocol for members includes targets on private assets and outlines ways to report on sovereign bond emissions.
Meanwhile in the asset management sector, Legal & General Investment Management said it would divest from Russian sovereign debt and the manager has reduced total exposure to 0.1% This can be particularly significant when information is an integral part of modern political conflict. . of AUM or £1.3 billion. .
Students are also starting to pressure their universities to divest from border and surveillance companies. And it is working in the UK on affordable housing for refugees.
Anti-modern slavery legislation is in its infancy and investors must rely on myriad sources of information to identify and mitigate the risk of slavery and forced labour in investee companies and their wider supply chains. Divestment was the least selected due diligence action by both business and general respondents.
From experience we know at G&A Institute that when firms move out of P/E portfolio (via IPO, SPAC , acquisition by larger firm, management buyout, other means) the proactive burnishing of corporate ESG reputations can be a big plus in the divestment of today’s P/E entity. TOP STORIES.
It sent questionnaires pre-filled with publicly available information to the selected asset managers and 64 out of 77 responded directly to verify and supplement answers. The 13 which did not respond had their information completed by ShareAction based on publicly available information.
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.
Manning said feedback on this subject would inform a planned review of the overall UK legal and regulatory framework relating to investment stewardship, due to be conducted later this year. Manning said the TPT’s guidance would provide support and input for investors’ sustainability-related stewardship activities. “If
According to Reuters, environmental groups are calling for “robust rules in the textile-specific standards currently in development under the EU’s Corporate Sustainability Reporting Directive (CSRD).” For more information , view the full newsletter here. View our news feed here.
Hard to ignore Demand for more information is coming from many stakeholders and is getting harder to ignore. They realise they need to make that information available as without it we won’t be able to make investment or lending decisions.” Nature is at the base of every supply chain.
This slashes portfolio emissions and sends a strong signal to oil and gas firms about the financial consequences of failing to set out credible transition plans.
Large institutional investors such as Norges Bank Investment Management, Storebrand, Nest and the Church of England Pensions Board have announced exits from Russian investments, while many Western corporates have shuttered operations, McDonalds and Coca-Cola among the latest. . Ratings under review .
Through SIPs, trustees with 100 or more members are now expected to publicly state their – or their external managers’ – engagement policy and priorities, and explain in detail how they steward their sustainableinvestments. Trustees can then use this information to prioritise specific companies for engagement. . “We
However, as institutional investors, academics, NGOs, investor networks and data providers congregated in London last week for ESG Investor ’s inaugural Stewardship Summit , it became clear that many asset owners lack the resources necessary to fulfil their engagement ambitions.
For asset managers, corporate climate performance should strongly informinvestment stewardship, proxy voting and fund construction. Advancing sustainableinvesting in 2021 will also necessitate a shift in proxy voting among the world’s largest asset managers. Align proxy voting with climate goals.
The influence of sustainability-minded investors can be seen in divestment strategies of both state- and privately-owned debt issuers. Divestment is typically a last resort. . Many high-emitting miners and oil and gas companies are pushing their fossil fuel assets to private markets,” says Spavieri. .
CPP Investments is a founder signatory of the UN-supported investor network, with the organisation expanding the size, and enhancing the strategies, of its sustainableinvestment team over the past 17 years.
Paul Lee, Head of Stewardship and SustainableInvestment Strategy at investment consultancy Redington, says concerns that fiduciary duty may constrain investor action on climate change or indeed ESG risks more broadly are overstated.
She cited the massive growth of ESG initiatives as a great achievement but was wary of the lack of democratized data that can clearly define certain ESG investments as sustainable. Pretorius and Free agreed and claimed investors will expect even more from companies than mere divestment from non-renewable assets. said Free.
Will Martindale, Group Head of Sustainability at Cardano, says trustees are enthusiastic in their embrace of TCFD, despite its shortcomings. In terms of metrics to inform disclosures, Cardano uses enterprise value including cash (EVIC) which is the measure set out in the EU benchmarks.
billion in long-term fixed-income securities and $600 million in overnight cash investments managed by BlackRock because of the firm’s commitment to sustainableinvesting. To do this I looked at the publicly available returns of the Florida Long Duration Portfolio as of March 2022, the most-recent information on it I could find.
The regulatory fatigue is palpable among asset managers,” Hortense Bioy, Head of SustainableInvesting at Morningstar Sustainalytics, told ESG Investor. Greater impact of the regulation has yet to be seen, as we anticipate a wave of fund rebranding and divestments,” she said.
The regulatory fatigue is palpable among asset managers,” Hortense Bioy, Head of SustainableInvesting at Morningstar Sustainalytics, told ESG Investor. Greater impact of the regulation has yet to be seen, as we anticipate a wave of fund rebranding and divestments,” she said.
We organize all of the trending information in your field so you don't have to. Join 5,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content