Highly polluting companies need trillions of dollars of funding to reduce their carbon emissions. Transition bonds are mooted as one solution, but investors are far from convinced.
Energy and Utilities
Africa’s largest lender has decided against funding three of the continent’s coal-power projects and committed to releasing a climate plan aligned with the goals of the Paris Agreement. But it is still lagging behind local peers, lobbyists say.
The number of firms incorporating ESG metrics into leadership remuneration is rising amid shareholder pressure and as CEOs recognise the commercial and reputational benefits.
UN Sustainable Development Goal 15 figures low on investors’ agenda, while their exposure to at-risk forest companies remains high.
Regulations forcing British companies to disclose details of their gender pay gaps are having a positive impact, but some lobby groups feel they should go further.
The Finnish bank has set itself new sustainability targets. But it faces tricky decisions if it is to realise them, given its exposure to the key Nordic industries of shipping and fossil fuels.
One of the world’s most influential financiers of oil and gas remains reluctant to threaten clients with funding cuts as a means to hit net zero. The US bank argues its investment-led approach to reducing carbon intensity within sector hotspots goes far enough.
A lack of technical guidance on Europe’s SFDR legislation has left asset managers to fill in the gaps, leading to confusion and serious risks of both greenwashing and market fragmentation.
The proliferation of ESG indices and the funds launched off the back of them is great business, but the ESG ratings underpinning them are under intense scrutiny.
Momentum is gathering behind President Joe Biden’s environmental push, which includes a proposal for corporate climate disclosure. It will add a burden for companies, but the environmental risk of inaction could be a lot higher.
Analysis by Capital Monitor has discovered a small handful of influential investors with significant stakes in companies that dominate the ocean economy. Sadly, improving life below water is not high on many investment agendas.