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I’m reminded of this debate amid the current turmoil over a greeninvestment label in Europe, a situation caused largely by the unwillingness of the sustainable investment sector to create its own industry standard. Until very recently, the initiative has been considered a success.
If companies want to do big business with the Canadian government going forward, they’ll need to prove how green they are. The federal government is pursuing new policies on procurement and low-carbon investment standards aimed at boosting the business prospects for companies committed to net-zero climate plans.
EU climate taxonomy simplified The new rules also reduce the reporting burden under the EU taxonomy, the classification system that determines whether companies are making capital investments in line with a net-zero future. Companies are required to report under a list of hundreds of data points, which vary by company.
At a forum on sustainable finance in Ottawa this week, a parade of speakers, including Environment Minister Steven Guilbeault, warned that Canada is falling behind global competitors in the race to attract the investment needed to fuel the transition to a net-zero economy. Canada is playing catch-up,” he acknowledged. “We
The European Union, China, the United Kingdom and about 20 other countries are developing such taxonomies as a way of discouraging greenwashing and channelling investment to the climate transition. The EU’s taxonomy has been particularly controversial because of its inclusion of natural gas and nuclear as “greeninvestments.”
Portfolio-wide commitments to netzero emissions have surged among Asian investors, according to a new study from The Asia Investor Group on Climate Change (AIGCC). A total of 40% of survey respondents had committed to netzero emissions, compared with none the previous year.
Pfizer Announces 2040 NetZero Commitment. SLC Management Commits $139 Billion Portfolio to NetZero by 2050. European Lawmakers Defeat Move to Keep Nuclear and Gas out of GreenInvestment Taxonomy. K2 Launches ESG Certification for Fund Managers to Tackle Greenwashing Risk. ESG Services and Tools.
Nine out of ten – Using home-field advantage in New York Climate Week , US Treasury Secretary Janet Yellen unveiled nine “voluntary” ‘Principles for Net-Zero Financing and Investment’, aimed at promoting “consistency and credibility” in the actions of financial institutions that have made netzero commitments.
The European Markets and Securities Authority (ESMA) released an analysis that noted the “absence of harmonised and standardised reporting requirements” for private sector actors against SDG targets, and concluded that most funds claiming to contribute to SDGs neither explained clearly how they aligned, nor invested any differently to non-SDG funds.
A proposal made by the Dutch Authority for Financial Markets last month suggested the current SFDR framework could be improved by discarding the current Article 8/Article 9 distinction and replacing them with three categories.
The government is putting together a comprehensive investment plan (CIP) to fund its net-zero aim. For the power sector alone, state utility Perusahaan Listrik Negara has repeatedly stated a need for at least US$500 billion to reach its net-zero goal by 2060, far surpassing the state budget’s funding capacity.
Levick also noted that the taxonomy could be employed via initiatives such as a netzero test, which the UK might apply to all its public investment decisions, utilising the taxonomy to evaluate whether investments align with the its definition of ‘green’.
According to the International Energy Agency (IEA), US$4 trillion needs to be invested in renewable energy globally every year by 2030 to achieve netzero by 2050. At least US$1 trillion of this needs to be annually invested in EMDEs. The finance sector .
More vibrant corporate green bond markets can promote more advanced corporate green strategies: companies tend to set comprehensive targets and improve disclosure by engaging in sustainable finance. This plays a particularly crucial role in supporting the UK’s 2050 netzero goal.
While this may seem a long way from where things stand today, there is no denying that addressing environmental concerns – and social and governance issues – is increasingly expected to be at the heart of every firm’s investment process. In part, this shift has been driven by the regulators.
This not only creates considerable confusion among investors but exposes them to accusations of greenwashing, as well as the risk of holding investments that are not aligned with their own ESD/SDG requirements. And just as well! Capture the opportunity. The post From Rhetoric to Practice appeared first on ESG Investor.
This week in ESG news: Biden admin invests $6 billion in industrial decarbonization projects; Microsoft signs one of largest-ever biochar carbon removal deals; Mississippi orders BlackRock to ‘cease and desist’ from ESG investing; Walmart invests in 1 GW of new clean energy projects; Vanguard found guilty of misleading greeninvesting claims in Australia; (..)
Sitting uncomfortably – A change of tactics now seems clear for asset owners seeking more credible and transparent netzero transition plans from investee firms. To quote a past contributor to ESG Investor , for fund managers, it’s still not easy being green.
The year started optimistically, fresh off the bold and ambitious agreement in November 2021 that established the Glasgow Financial Alliance for NetZero (GFANZ). Index fund managers slow-walked on net-zero. More than US$8 trillion removed from sustainable investment tally. Canadian and U.S. In the U.S.,
To reach net-zero emissions by 2060, the World Bank estimates China needs between US$14-17 trillion in additional investments for green infrastructure and technology in the power and transport sectors alone, and much of this will need to come from the private sector. ChinaSIF estimates that the size of China’s ESG market in 2022 was RMB 24.6
As the UK government also grapples with strengthening the economy, and the implementation of Brexit continues to rumble in the background, greeninvestment is naturally becoming deprioritised. The very concept of a netzero trajectory is being challenged.
US sustainable investment non-profit Ceres remarked on its rapid economic impact, pointing to the creation of 170,000 green jobs already. The act also kickstarted an era of greeninvestment competition.
Aconsequence of this pushback came on New Years Eve, when global financial behemoths Bank of America and Citigroup left the Net-Zero Banking Alliance, one of the investment industry climate coalitions championed by the United Nations. By the second quarter of 2024, Morningstar estimates that net inflows had dropped to US$6.3
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