With many asset owners historically reticent, and some unable, to invest in the renewable energy market, has 2021 proved a turning point for institutional investor appetite in this crucial asset class?
Energy and Utilities
Passive investing has been posed as a threat to the planet – but how far does the data support these claims?
America's solar industry has faced challenges getting financing, but investor and public sentiment is improving and government support is growing. A $400m debt issue last month was another positive sign.
Green short-term funding has struggled to take off as an asset class. With Asia’s first green commercial paper guarantee for Taiwan’s Sing Da Marine Structure, Crédit Agricole hopes that a new wind is blowing.
The A$150bn pension fund is using its financial heft to address modern slavery and has developed a risk-assessment tool to support its reporting requirements. But while some asset managers have shown overwhelming support, others are still burying their heads in the sand.
The British bank is calculating a carbon budget that should lead to an overhaul of its balance sheet. Starting by tightening financing policy for the oil and gas sector, the group will introduce a series of emissions-led sector targets by 2022. A bold move, but critics argue the plans lack clarity.
The year to date has seen record-breaking support for shareholder resolutions, with asset managers such as BlackRock and Vanguard stepping up their stewardship. However, a lack of data on the real-world impact means the jury is still out on their efficacy.
Despite Seoul's commitment to reducing the country's reliance on fossil fuels, new coal-fired power projects are still raising funds. But the commodity's recent sharp price rise may focus the minds of corporate executives, bankers and government officials.
The debate over how the fiduciary duty to seek the best returns affects ESG investing – and whether it should do – has intensified lately, with prices of both sustainable assets and many 'dirty' investments soaring.
Despite coal's influence on global warming, less than half of the world’s largest asset managers have an investment policy in place for it, according to non-profit organisation Reclaim Finance.
The Energy Charter Treaty, which gives oil and gas companies a route to suing governments, is increasingly hindering climate policy reform, say campaigners. And it is not the only agreement of its type.
The multilateral finance institution is developing a renewable energy platform that it aims to list in London to lure more investment to Africa. Capital Monitor spoke to two top executives about the plans.
Companies across the globe, from banks to beauty product purveyors, risk losing the best staff if they fail to take account of a new generation of executives' greater ethical awareness and willingness to act on it.