Trillion-Dollar ESG Boom Is Punishing Old-School Energy Stocks
With around half of the world’s oil supply sourced from public companies, rising ESG pressure on the global energy industry “is constraining investment in oil and gas,” according to Morgan Stanley analysts led by Devin McDermott. There are other reasons for underperformance: Poor spending decisions among energy producers have undercut business growth, per Morgan Stanley. Meanwhile, alternative Read more
Baring Asia Sets Up $3.2 Billion ESG Loan for Investments
With initial commitments of about $1.5 billion, the credit facility will be subject to sustainability performance targets in areas such as gender diversity and climate change, according to a statement obtained by Bloomberg News. Baring will pay lower interest rate on the loan if it meets those goals, while using the proceeds to support its investment platform. Baring will require its portfolio of Read more
How the UAE is becoming sustainable finance centre
In recent years, sustainable finance has expanded beyond socially responsible investing to include asset management and ownership with environmental, social, and corporate governance standards that drive investment and disinvestment decisions, often linked to the United Nations’ Sustainable Development Goals. Institutional investors and asset managers are at the vanguard of these changes, taking a more hands-on approach based on investor requests, with the awareness that ESG investments and capital allocation can lead to more business prospects and potentially higher returns over time. Standardization of ESG-related terminologies, such as climate, blue, green, impact, or sustainable, is one of the key areas being tackled in order to provide a more consistent understanding of these terms and reduce the possibility of financial products or investments being “greenwashed.” The Dubai Financial Services Authority is working hard in these areas to establish a supervisory and regulatory framework for the development sector. Read more
Corporate Sustainability is beyond the environment
The UK government adopted a range of steps in January to encourage new jobs and skills to stimulate economic growth and recovery as the country battled another wave of growing Covid-19 cases. Many companies are well on their way to becoming more ecologically friendly as they work to combat climate change and reach the government’s goal of net-zero carbon emissions by 2050. However, while the business community recognises the importance of social issues as a component of long-term sustainability, it is frequently unclear how to formulate successful policy, how to quantify that policy, or even what social sustainability should entail. Read more
