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More than half of divestments by Norges Bank Investment Management (NBIM) last year were the result of unacceptable social and governance-related risks. This can escalate action to voting, and, when necessary, resort to risk-based divestment. trillion in assets under management (AUM). trillion in assets under management (AUM).
But when the largest players’ strategies are so wholly focused on dirty revenue maximisation – campaign Follow This called Chevron’s purchase of Hess a bet that Paris would fail – is there any justification for engagement over divestment? At the very least, investors should pursue a policy of engagement with consequences.
The investors that were more exposed to power and gas benefited more than the peer groups that had mostly divested from conventional power generation. Operational valuecreation is paramount, said the report’s authors, with many investors saying the focus will shift towards more “hands-on valuecreation”.
More recently it has become more widespread across the institutional investor community , as they increasingly recognize we cannot continue to focus solely on financial valuecreation at the expense of people and the planet. The assessment also informs portfolio decisions (i.e.
We pursue a strategy of engagement rather than divestment. Q – You have recently increased your exposure to several oil and gas companies. How does that align with your climate policy? A – Stewardship. Q – We observe that you’ve also voted against shareholder resolutions supporting Paris-aligned climate transition plans.
But Byrns sees divestment as unlikely outcome because American Century does a lot of work up front in finding companies that have well-defined improvement pathways relating to its KPIs, has consistent dialogues with the companies and has a long track record with its other strategies.
He said in a statement that the outcome of the company’s AGM showed that rules and valuecreation matter most. A stronger possibility is that more investors choose to divest from Exxon, following continued examples of climate denial and obfuscating.
Many ESG issues can be material to a company’s core strategy and long-term valuecreation. billion in AuM – informed Kentucky State Treasurer Allison Ball and Attorney General Daniel Cameron that it would not divest, as instructed, from asset managers, including BlackRock, as it would violate its fiduciary duty.
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