Three-quarters of European companies have set emission-reduction goals, but details of how they intend to achieve them are lacking, while only one in ten is on track to hit net-zero targets, finds recent research. Pressure is growing on corporates – and regulators – to take more action.
Research shows that ESG strategies that focus on companies’ fixed climate scores, rather than performance metrics, risk undermining the much-needed energy transition to net zero
Investors increasingly claim to be incorporating ESG factors into their portfolios. But are they doing so genuinely and for the right reasons, and what should best practice entail in ESG integration? The concept is still vague, with a clear definition some way off.
Initiatives are under way to build the markets for so-called blue bonds – which finance ocean-related conservation projects – and environmentally related debt swaps. But there are doubts over the scalability of such programmes, despite the huge appetite for sustainable assets.
Despite concerns that ignoring health issues increases investment risk, fresh research indicates investors do not have the necessary support or inclination to implement effective screening measures.
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An Australian parliamentary inquiry into the domestic finance sector’s shift away from coal exposure underlines the government's reputation as a climate policy laggard. But it may inadvertently help boost the country’s sustainable investment industry, argue some market participants.
Under fire for their lack of transparency and buying of out-of-favour fossil fuel assets, private equity managers are being urged by their clients and others to use their capital and clout more positively.
A recent essay by the former global head of sustainable investing at the world’s largest asset manager poured scorn on the climate claims of ESG investment strategies. But experts argue that while ESG investing is far from perfect, it still has a significant role to play in helping to achieve net zero.
Hopes are rising that asset managers will become more open to implementing British pension schemes’ voting preferences in light of new, less prescriptive recommendations from a government-backed taskforce.
Science-Based Targets are a vital starting point for a company’s transition plan, but the inclusion of high-emitting coal companies on the initiative's approval list presents problems for investors forming policies around them.
Investors need to adopt a new approach to low-emission equity benchmarks if they are to achieve decarbonisation goals effectively, argue executives from State Street Global Advisors and S&P Global.
Climate disclosure does not change corporate behaviour fast enough and time is running out, executives from Invesco and two influential investment associations said at a Capital Monitor event. They argued that a carbon tax is needed to prompt a fundamental market shift.
Asset owners and managers are becoming more proactive in assessing positive and negative impact in respect of the UN’s Sustainable Development Goals. But some experts feel they can go further.
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