More listed companies are setting science-based targets, and emissions disclosures are growing, but companies’ decarbonisation trajectories still place them on a path to warm the planet by 3 degrees celsius, the latest MSCI Net-Zero Tracker report has revealed. In the April review of the progress of publicly listed companies in the MSCI ACWI index, which … Read more
Investors in Asia should prioritise assessing physical risk, and adjusting fossil fuel and deforestation policies in order to mitigate climate risk, a report by the Asia Investor Group on Climate Change (AIGCC) has found. Although Asia’s investors are making progress on climate targets, challenges remain in reaching 1.5 degrees climate goals, the report State of Net Zero … Read more
Increased demand for green bonds has spurred the standardisation and review process of the asset class, according to some investment specialists. However, investors are urged to proceed with caution given higher prices or ‘greenmiums’, alongside a lack of control as to how the money is ultimately spent by the issuers. Martin Foden, head of sterling … Read more
As the world moves towards a low carbon economy, demand for so-called transition minerals is rapidly rising. Electric vehicles, batteries, solar photovoltaic systems, wind turbines and hydrogen technologies all require specific metals like lithium, cobalt and nickel. And they need a lot of them. For example, a basic electric car requires six times more minerals … Read more
Investors have again noted the absence of the term ‘ESG’ in Larry Fink’s annual letter, with the BlackRock CEO instead focusing on retirement concerns and how countries are using natural gas alongside renewables – something he has called “energy pragmatism” . In his annual chair letter, released on 26 March, Fink emphasised a retirement crisis looms … Read more
Despite efforts from the banking sector to communicate their decarbonisation strategies in recent years, banks are facing further scrutiny for skewing their net-zero targets in favour of the lower emitting areas of their business. HSBC’s 2023 annual report published targets covering ‘facilitated emissions’, calculated with a weighting of only 33%. But, in a separate ESG … Read more
There has been an explosion of interest in sustainable strategies from institutional investors over the past year despite challenging conditions in 2023. This is according to Jean Ryan, SVP of business development and client services for KBI Global Investors, under the Amundi Group. She told FSA: “There has been an explosion of interest in climate action-oriented … Read more
By 2030, nearly half the world’s population will face water shortages. As supplies dwindle, droughts intensify, and demand escalates, we stand at the precipice of a worldwide water emergency according to the latest World Water Development report. The report underscores the stark reality of deviation from achieving Goal 6 of the UN Sustainable Development Goals (SDGs) — to … Read more
Aviva Investors has expanded its responsible investment team within its real assets unit with three new hires. Reporting to Edward Dixon (pictured), head of responsible investment, real assets, at Aviva Investors, Phillipa Grant joins as director of sustainable investments, Elizabeth Ortiz has been appointed as an associate and Jeremy Ho joins as an analyst. “Our … Read more
Five of the biggest passive fund managers – Amundi, BlackRock, DWS, Legal & General Investment Management (LGIM) and UBS AM – are “turning a blind eye” to the climate impact of their passive investments, according to an analysis from Reclaim Finance. With the number of passively managed investments growing, Reclaim Finance examined 430 ‘sustainable’ passive funds managed … Read more