The global investor initiative Climate Action 100+ involves more than 440 investors with a combined $39 trillion in assets under management. Investors engage with the 100 largest corporate greenhouse gas (GHG) emitters, as well as with 60 other influential companies positioned to drive the low-carbon transition. The initiative’s focus companies are collectively responsible for more than two-thirds of global GHG emissions and through engagement investors already have achieved emissions reductions commitments from numerous companies, including BHP Billiton, Daimler, Duke Energy, Heidelberg Cement, Nestle and VW.
Read moreNatural Gas In The Power Sector: Bridge Fuel Or A Stranded Asset?
As the window of opportunity to prevent catastrophic climate change narrows, natural gas has been lauded by many in the power sector as a “bridge” from high-carbon coal to a low-carbon future. Indeed, gas has been an important step on the path of reducing greenhouse gas emissions and helping to move the power sector away from coal. However, natural gas is still a fossil fuel that generates considerable climate impacts, both through methane leakage across the supply chain from production to use, as well as direct combustion emissions. To achieve a safe level of climate stabilization and to protect investor portfolio exposure from global climate risks, the bridge of natural gas and its associated emissions must have a clear end.
Read moreBig Banks Must Take Responsibility For Their Own Climate Footprints
As climate-related harm accelerates, economy-wide losses are increasing and posing growing risk not only to the individual companies in which shareholders invest but, significantly, to their entire portfolios. A 2018 analysis in Nature found that limiting global warming at 1.5°C versus 2°C will save $20 trillion globally by 2100. Failure to maintain warming below 2°C will cost the economy vastly more.
Read moreRenewable Energy And Energy Efficiency = Clean Energy Future
Over the past several years, investors have increasingly focused on clean energy as a way for companies to mitigate climate risk and take advantage of opportunities as we transition to a low-carbon economy. In the absence of strong legislative action, corporate commitments are crucial in reaching the levels of decarbonization necessary to keep warming under 1.5°C .
Read moreVerizon Heeds Shareholder Call To Source More Renewable Energy
When Green Century first engaged Verizon Communications, the company sourced 2 percent of its energy from renewable sources—and had a goal to increase that amount to 4 percent by 2025.
Read moreThe Beverage Recycling Conundrum
The beverage container touches many industries, upstream and downstream, and presents logistical and environmental challenges at each step. ClearBridge takes a life cycle approach to the beverage container’s challenges, finding that there are several entry points for action that can reduce environmental impact.
Read moreStarbucks Signals Historic Shift From Single-Use Cups And Plastics To Reusable Packaging
An estimated eight million tons of plastics are swept into oceans annually. Plastic beverage containers are among the most common items found in beach cleanups. In 2008, Starbucks pledged that, by 2015, it would serve 25 percent of beverages in reusable containers like ceramic mugs. Ten years later, the company had little to show for its efforts, with less than 2 percent of beverages served in reusable cups.
Read moreA Lighter Chemical Footprint Sought For Consumer Goods, Health Care, Technology Sectors
Materiality of chemicals in products is well established in the Sustainable Accounting Standard Board’s (SASB) standards for Consumer Goods, Health Care, and Technology & Communications. These standards reflect rising demand from consumers and institutional purchasers for safer products and growing evidence of the harmful effects of toxic chemicals, including a peer-reviewed study showing that toxic chemicals cost the world 10 percent of annual global gross domestic product, $11 trillion a year in disease burdens. Yet companies in these sectors have been slow to assess and reduce the chemical footprint of their products.
Read moreRegenerative Agriculture Takes Root Among Food Manufacturers
Food manufacturers have a critical role to play in sustainable food systems. As major purchasers of commodity crops, these companies wield immense power to shift the way food is grown. Some, such as Kellogg and General Mills, are starting to use that power to drive positive change after persistent shareholder pressure.
Read more2020 Could Be Pivotal Year For Sustainability Accounting Standards
The Sustainability Accounting Standards Board (SASB) was formed in 2011 to formulate social and environmental disclosure standards in line with definitions of financial materiality under U.S. securities laws. Financial materiality is a critical feature from the standpoint of mainstream investors, as many of them construe their fiduciary responsibilities to mean that any engagement or voting effort directed toward ESG issues must have monetary benefits for their customers.
Read moreInvestors Drive Market Forces For Progress On Antibiotics In Factory Animal Farming
The meat and poultry industries have made significant progress in tackling antibiotic resistance over the past four years, encouraged by persistent shareholder engagement on this critical issue.
Read moreElectric Vehicles Drive Shift To Low Carbon Economy
As companies consider how to reduce their emissions to comply with the goals of the Paris Climate Treaty, they can look to electric vehicles as a feasible option. Carbon emissions from vehicles contribute significantly to global warming, and the transportation sector is one of the larger contributors to greenhouse gas emissions (GHG) in the U.S. As institutional investors seek to offset and mitigate the rising levels of carbon and other GHGs, electric vehicles (EVs) are an increasingly viable solution. With sales of EVs growing faster than predicted a few short years ago, the outlook for EV production and adoption is becoming increasingly robust.
Read moreNYC Pension Funds Sues Transdigm To Include Greenhouse Gas Reduction Proposal On Proxy
New York City Comptroller Scott Stringer, on behalf of the New York City pension funds (the “NYC Funds”), submitted a shareowner proposal to TransDigm Group on September 19, 2019, requesting that the company adopt a policy with time-bound, quantitative, company-wide goals for managing greenhouse gas (GHG) emissions, taking into account the objectives of the Paris Climate Agreement, and report on its plans to achieve these targets.
Read moreGrowing Support For Climate Financial Disclosure And Scenario Analysis
The Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) has raised awareness of climate risks and opportunities to new levels. As a global, industry-led initiative formed by G20 nations, it has support from over 500 corporations and has led many other companies to consider its recommendations.
Read moreEnergy & Banking Companies Need Plan To Reduce Full Climate Footprint In Line With Paris Goals
Climate change poses growing risk to the individual companies in which shareholders invest and, significantly, to shareholders’ broader portfolios. As climate related harm accelerates, economy-wide losses are increasing and hurting portfolios. A 2018 analysis in Nature suggests that keeping global temperature rise below 1.5 degrees instead of 2 degrees can prevent over $30 trillion in economic damage.
Read moreFossil Fuel Industry Sees Plastic As Saving Grace, But Demand May Plummet
Plastics and other petrochemical goods are set to overtake the transport sector as the largest driver of global oil demand. Oil and chemical companies have invested a whopping $180 billion in new and projected plastics facilities, largely due to the fracking boom. But calls by governments and a variety of stakeholders to reduce single use plastics raise questions about whether projected demand for plastic products may slump, resulting in stranded petrochemical assets. Furthermore, extreme weather is creating new risks from flooding that exacerbate plastics pollution risks from petrochemical plants.
Read moreShareholders Play Key Role In Reducing Deforestation And Climate Risk
As investors analyze the climate resiliency of their portfolios, they should consider risks associated with the agricultural sector and especially the conversion of forests and peatlands to crop and pasture land. The burning and razing of forests is one of the largest contributors to global greenhouse gas emissions. Deforestation contributes as many greenhouse gas emissions as the global transportation sector, with commodity-driven deforestation itself responsible for two-thirds of tropical forest loss.
Read moreSocial Cost And Material Loss: The Dakota Access Pipeline
For 25 years shareholders have been raising concerns over corporate infringement on Indigenous Peoples’ Rights. Indigenous Peoples have helped to raise international awareness about how pipelines such as the Dakota Access, Keystone, and Trans Mountain projects harm local communities. Companies often minimize the social cost of public protests, even as investors contend that grassroots opposition can impose significant financial and brand risks.
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