May the forest be with you! Putting a price on nature March 2, 2021 | City Talk Natural resources are often seen as free inputs that any company may use to produce an output. The exploitation cost alone is how firms assess a natural asset’s monetary value. In this way, natural resources tend to be seen as infinite: there is no clear sense of how overexploitation can destroy surrounding ecosystems. Today, many [...]
Vanguard and BlackRock uncovered as largest investors in coal industry February 25, 2021 The US mutual fund company Vanguard has been named the world’s largest institutional investor in the coal industry, with holdings of almost $86 bn, according to research carried out by Rainforest Action Network, Urgewald and 28 other NGO partners. The investor is closely followed by BlackRock, which has invested over $84bn in the coal industry [...]
NatWest issues €1bn affordable housing bond in ESG push February 23, 2021 NatWest Group is issuing a €1bn affordable housing bond, the first of any kind issued by a UK bank. The proceeds of the bond will be allocated to non-profit housing associations which provide access to affordable housing. The selected associations provide affordable rent, supported housing and shared property schemes. They own around 150,000 units of [...]
Exclusive: Brewin Dolphin’s CEO on Brexit, pandemic market sentiment and why ESG is not so clear-cut February 18, 2021 As the City comes to terms with a new post-Brexit reality and slowly looks towards a post-pandemic recovery, City A.M sits down with the CEO of one of the Square Mile’s best-known investment managers, Robin Beer of Brewin Dolphin. Beer, who joined the firm in 2008, initially managed the Nottingham office and was regional director [...]
HSBC suspected of greenwashing as lawyers urge bank to clean up February 11, 2021 Lawyers for an environmental charity have written to HSBC to remind it of its legal duties with regard to climate risk, as the banks mulls supporting a climate change resolution ahead of its next annual general meeting. The resolution, which was filed by ShareAction last month, called on the bank to take urgent action to [...]
The truthiness of ESG criticism February 2, 2021 | City Talk There are two often-repeated critiques of Environmental, Social, and Governance (ESG) investing that I really can’t stand. They have the quality of truthiness about them and are what academics sometimes call “as if” arguments. For my younger readers, the term truthiness is defined by Wikipedia as follows: “Truthiness is the belief or assertion that a particular statement [...]
EU securities watchdog calls for stricter regulation on greenwashing January 29, 2021 The European Securities and Markets Authority (ESMA) said today EU rules are needed to regulate ratings on the environmental, social and governance (ESG) aspects of companies to avoid investors being deceived by “greenwashing”. Asset managers use ESG ratings to make “green” environmentally conscious investment decisions. Greenwashing refers to inaccurate claims that investments are sustainable and [...]
Thames have changed: CEOs going green will reap the benefits January 26, 2021 WHEN Paul Polman drank a glass of water drawn from the murky River Thames a decade ago the Dutchman could hardly have imagined how many of his peers would follow suit. Not by matching his dubious consumption, but by attempting to generate more from the companies they run than profit alone. Polman’s stunt took place in November [...]
Sustainability investing: what does the future look like? January 5, 2021 | City Talk ‘Future of Sustainability in Investment Management: From Ideas to Reality’ is a newly published CFA Institute report. The 60-page publication was informed by the views of more than 7,000 industry participants, including 3,500+ retail investors, 920+ asset owners and 3,050+ investment practitioners. Research included virtual roundtables across 31 markets. Here we summarise its findings. The [...]
Exclusive: Banks failing to prioritise the climate will lose customers, survey shows December 22, 2020 Customers are expecting more from their banks when it comes to climate change and could lose out to more green competitors if they fail to prioritise the environment. Some 71 per cent of UK banking customers are more likely to choose a bank with a positive social and environmental impact, according to new research from [...]