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About two-thirds of the GHG reductions achieved by these companies were genuine from the planet’s perspective; much of it came courtesy of efficiency measures or retiring polluting assets. In terms of sustainable capital expenditures, as a whole the 20 companies projected total sustainableinvestments of $528 billion (all figures in U.S.
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’s also a sellable GHG product for oil and gas firms.
Financial organisations thus have a major role to play in the decarbonisation of the global economy, yet it is estimated that since the Paris Agreement in 2015, the 60 largest banks have instead invested $5.5 Clearly much more needs to be done to pivot towards more sustainableinvestment and lending practices.
Alignment is not just about divestment, said Bolli, but about a “collaborative mindset” that uses engagement to steer investee companies on the right path. . Only if engagement and voting don’t work would there be a need to divest, given the risk of strandedassets on the balance sheet, she noted. . Data tools .
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. A long way to go”.
Dr Tom Gosling, Executive Fellow at London Business School, has argued that some asset managers are effectively pulling their punches on net zero, holding off on implementing their collective and individual commitments, awaiting stronger policy direction from politicians. Lee suggests not. “In
With nature more broadly, there are further layers of complexity,” said Eric Nietsch, Head of SustainableInvesting, Asia, Manulife Investment Management. For investors and companies with assets within those key biodiversity areas, this raises the issue of strandedassets.
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