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Then we can create the trade relationships that will underpin international supplychains for these new industries.” It would also create supplychains that can support the wider economy. That doesn’t happen overnight, because just divesting and allowing another investor to purchase the asset isn’t the answer.
One might expect governance ratings to change over time rather than overnight,” said a sustainableinvestment analyst at a large UK-based asset owner. . Any decision made to disengage or divest must be done in a responsible fashion, including scrutinising for any unintended human rights consequences.” .
Oliver Balch reports that new research from the campaign group Fashion Revolution indicates that 53% of the world’s biggest 250 fashion brands still lack a firm decarbonization target, and only one in 10 of the global brands studied disclose details of their energy procurement at the supplychain level.
The impact of human rights abuses in portfolio companies and their supplychains is becoming more apparent to investors. Martin Buttle, Head of Good Work at NGO ShareAction says, given the estimates, “there is a very real chance that victims are present in the global supplychains” of investee companies.
Million to Turn Landfill Waste into Renewable Biofuels ESG Investing Texas Pulls $8.5 Billion From BlackRock Over ESG Investing BlackRock Calls Texas Decision to Divest $8.5 This week in ESG news: Texas pulls $8.5 Renewables Developer Avantus Renovare Raising $7.5
For financial institutions such as banks, insurance companies and investment managers, scope 3 emissions from supplychains and lending/investment portfolios are often more complex than for other industries. Clearly much more needs to be done to pivot towards more sustainableinvestment and lending practices.
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. Canada Signs EV and Battery SupplyChain Agreements with Volkswagen, Mercedes-Benz. ESG Investing. Sustainable Finance.
Nature is at the base of every supplychain. For now, business understanding and disclosure of nature risk – both from investee firms’ direct operations and along their supplychains – is patchy at best, with firms in the APAC region lagging global peers. Ecosystem services are absolutely critical to the creation of GDP.
It also tries to identify the risk of human rights abuses of refugees in supplychains. Students are also starting to pressure their universities to divest from border and surveillance companies. It includes tracking company refugee programmes such as support for entrepreneurship or specialised training.
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% of AUM or £1.3 billion. .
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.
There is a lack of clear economic incentives across markets to invest in GHG reduction, for example, due to the inconsistent introduction of carbon pricing. Today, the pension fund has evolved its approach to sustainability, integrating consideration of ESG factors through the lifecycle of the investment.
According to its analysis, private equity firms have snapped up oil, gas and coal assets worth US$60 billion over the past two years, many divested by listed firms in response to the environmental concerns of institutional investors. Removing impediments. Lawyers say clients across sectors are currently being asked to walk a fine line.
Funds marketed as environmentally friendly are being used by major asset managers to funnel millions of dollars to the world’s largest meatpacker, JBS, a company notorious for its links to deforestation and human rights abuses via its supplychain. JBS is widely regarded as an ESG pariah.
SustainableInvesting – Greater Scrutiny. The divestment movement will wane. Jonas Rooze, manager of sustainability and climate research. Elsewhere growth is set to stagnate – turbine orders are down as onshore wind developers continue delaying projects amid high costs and supplychain constraints.
Will Martindale, Group Head of Sustainability at fiduciary manager and pension provider Cardano , has been on the front-line helping pension funds to implement their disclosure requirements and says this has been made more challenging by a lack of data from investee companies, particularly on Scope 3 (supplychain) emissions.
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
Ceres CEO Mindy Lubber opened her testimony asserting: “Climate change, water scarcity and pollution, and nature loss … pose material financial risks to investment portfolios, business operations and supplychains, thus to the long-term stability of our markets and the economy.”
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