March 2022

Mainstreaming the Trasition to a Net-Zero Economy

Mainstreaming the Trasition to a Net-Zero Economy

By Group of Thirty The evidence that climate change is posing unprecedented risks to our livelihoods is overwhelming. Atmospheric concentrations of carbon dioxide (CO2) have reached the highest levels in 800,000 years. Over the last three decades, the number of registered severe weather events has tripled. The cost of weather-related insurance losses has increased eightfold over the past decade, to an average of US$60 billion; and average uninsured losses from weather events have increased sevenfold. Still, these effects pale in significance...

El cambio climático y la diversidad

Climate change and diversity remain biggest concerns for investors ahead of AGM season

Climate change and diversity will be the most pressing issues for investment managers during this year’s AGM season, according to the new expectations on companies issued by the Investment Association (IA). With climate change presenting “one of the biggest risks to the long-term sustainability of a company”, investment managers will be looking for businesses to take immediate action, the IA reported, explaining how climate change will impact them and how they are mitigating the risk. IA encouraged firms to disclose their...

US. NYPD pension fund to divest $42M of Russian-issued securities investments

New York City’s Police Pension fund will divest its securities investments issued by Russian companies, following a slew of state and federal sanctions boycotting Vladimir Putin’s military invasion of Ukraine. The fund’s trustees – which include Mayor Eric Adams, city Comptroller Brad Lander and NYPD Commissioner Keechant Sewell – voted Tuesday directing the comptroller to divest $42.2 million following a review of its public equity and fixed income investments in Russian businesses. Trustees wrote in the resolution passed that they’re “concerned...

February 2022

From human rights to recycling bins: how can you define ‘ethical investing’?

Companies are facing increasing consumer and shareholder pressure to ensure the investments they make are ethical. But how do they define what’s ethical? Broadly, ethical investment is on the rise. According to the Responsible Investment Association Australasia (RIAA), about $1tn of the $2.24tn in managed funds is classified as responsible. That’s not just because Australians are becoming more aware of the impact their investments can have, but also because responsible or ethical investment is really starting to pay. Sustainable, environmentally...

Dutch pension fund PFZW to end investment in some fossil fuel companies

PFZW, the Dutch health care workers' pension fund, on Wednesday said it would disinvest from any fossil fuel company by 2024 that doesn't have a "convincing and verifiable" strategy to reach the goals laid out in the Paris Climate Change agreement. The decision by PFZW, with 278 billion euros ($316 billion) in assets, follows similar moves by other asset managers to overhaul the way they invest as part of a global efforts to reach net-zero carbon emissions by 2050. Some have...

Canada’s largest pension fund CPPIB takes engagement approach to net-zero

The Canada Pension Plan Investment Board, better known as CPP Investments or CPPIB, announced net-zero greenhouse gas (GHG) emission goals by 2050 through a decarbonisation approach focused on influencing transition within high-emitting sectors as opposed to divestment. Read also US. Pension plans increasing their focus on allocating to diverse asset managers The plan also includes increasing its investments into green and transition assets from $67 billion to $130 billion by 2030 and a carbon neutrality goal by the end of the...

UK. Force pension funds to align with net zero goal, says Richard Curtis

Pension funds should face legal obligations to bring their investments in line with the net zero greenhouse gas emissions goal, the film-maker Richard Curtis has said. Curtis, a co-founder of the Make My Money Matter campaigning group, urged ministers to follow up the UK’s legal commitment to reach net zero emissions by 2050 by making it mandatory for pension schemes to align their portfolios with the target. He told the Guardian: “The moment has arrived. Why not invest in sustainable investments?...

Latin America lags on decarbonization financing, report says

Decarbonization efforts in Latin America are being held back by lack of policy and private sector financing, according to a report released Wednesday by Janus Henderson Investors. Read also UK. Force pension funds to align with net zero goal, says Richard Curtis The Janus Henderson Latin America Decarbonization Report found that climate bond issuance in Latin America, at $45 billion in 12 countries at the end of 2021, is relatively small compared to the size of the region and to the...

UK. Climate change a ‘fundamental risk’ to scheme longevity

Climate change is severely impacting on the covenants of a range of employers sponsoring UK defined benefit (DB) schemes, the Employer Covenant Practitioners Association (ECPA) says. In a paper published today (8 February), the ECPA said climate change is "progressively impacting" the covenant of many sponsors, from impacting upon cashflows to representing a "fundamental risk" to scheme longevity. It argues that DB schemes should consider the impacts of climate change through sectoral analysis, including regulation and technological evolution, to best consider...

UK. 21 million savers tempted by green pension options amid increasing awareness

Awareness of the link between pensions and climate change has grown by around 85 per cent in the past year, analysis from Make My Money Matter (MMMM) has revealed, with an increasing number of savers tempted by green pension options as a result. Research from the group revealed that 51 per cent of savers, representing around 21 million individuals, would choose a green pension if offered one by their provider, up from 44 per cent in 2021, a "substantial" increase...