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EE: The debate about divestment versus engagement in fossil fuels is probably more heated now than ever. MH: Choosing among responsible investment tools – positive and negative screening, divestment and engagement – is complicated. Both divestment and shareholder action have a role. What are your thoughts on that?
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. Sustainableinvestments have now reached $4 trillion. Cement carbon laggards Companies in the cement industry that were divested by NBIM.
See below for the highlights of the past week, and get all your ESG news at ESG Today: Sustainability Goals, Initiatives and Achievements. Florida Bans ESG Investing in $228 Billion State Pension Funds. Texas Places BlackRock, Credit Suisse & UBS on Divestment List for “Boycotting” Fossil Fuel Companies in Anti-ESG Backlash.
With competition around sustainableinvesting heating up globally, the UK government to ensure the country remains attractive – particularly at a time when green pledges have been rolled back by the incumbent administration, driving potential scores of investors away. “The
In particular, many states have enacted laws or other policies requiring state entities to integrate sustainability factors into their investment policies, processes and decisions. For instance, Illinois enacted the Illinois SustainableInvesting Act in 2019. Legislators in New Jersey have introduced a similar bill.
The measures serve as a reminder of the long-term consequences of the invasion, for human rights on the ground, and for business and investment ties further afield. Divestment from Russian investments was a complex affair and an incomplete one.
Ninety One has been among the first joiners of the World Benchmarking Alliance’s call on asset managers to review their approach to sustainableinvesting to ensure it does not unintentionally lead to divestment from EMs. He reported that many original equipment manufacturers want to be more vertically integrated.
In the US, the California Transparency in Supply Chains Act (TSCA) came into effect at the beginning of 2012 and applies to retail sellers and manufacturers that do business in the state of California and whose annual gross revenue exceeds US$100 million.
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 Paris Agreement. Car manufacturer Toyota is facing (..)
SustainableInvesting – Greater Scrutiny. The divestment movement will wane. Jonas Rooze, manager of sustainability and climate research. 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.
Take two car manufacturers, one making its own tyres while the other outsources to a tyre manufacturer. Martindale adds: “That would give us the confidence in investing in a product that seeks to achieve positive change rather than simply divesting from high polluting companies.”.
Many investors also have weapons-focused exclusions enshrined in their investment policies. Goldman Sachs Asset Management’s 2024 statement on sustainableinvesting, for instance, alluded to its exclusionary framework – which included civilian firearms and controversial weapons. “The
Responsible investors and arms manufacturers need a level playing field which can only be delivered through risk-based human rights due diligence legislation, based on double materiality […] and backed by civil liability, Bloomer said. They have called on the finance sector to treat weapons manufacturers as ethical investments.
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