At last count, more than 850 institutions, accounting for about $1tn globally, had announced they would sell some or all of their shares in fossil fuel companies, according to Fossil Free UK, an organisation campaigning for divestment. Momentum behind divestment has been impressive. The trouble is that divestment removes shareholders’ most important power to drive change: their vote. So while divestment gets headlines, in the end it’s likely to be a Pyrrhic victory. This matters because the scale of the transformation in our energy system needed to achieve a 2°C cap on global warming demands that all of us – including fossil fuel companies – work together. The last thing society needs is an isolated fossil fuel industry determ ined to carry on finding and developing reserves regardless of the impact on the planet. This is particularly dangerous given that these companies frequently wield outsized influence through longstanding political relationships and lobbying networks that have acted as a powerful obstacle to regulatory action.
FT 24th April 2018 read more »
One of Europe’s biggest investment managers is preparing to name and shame companies which behave unsustainably – and to ditch billions of pounds of investment in their shares. Legal and General Investment Management (LGIM), which manages assets worth almost £1 trillion, has stepped up efforts to push the firms in which it invests to clean up their act with a “climate change pledge”. Those who have done well will be “named and famed” next month, said Helena Morrissey, LGIM’s head of personal investing. But those who have not listened to the investor will be named and shamed. On top of that, some LGIM funds will dump their shares. “We work with 90 or so of the world’s largest companies across six sectors whose actions we think will have the biggest implications for climate change in the future,” she told th e City Week conference. “Next month we will be naming and faming, and naming and shaming. The reason we are shaming [the worst performers] is that we gave them a number of years and they did not take any notice. “There comes a time when we should vote with our feet. We will be divesting from those companies.”
Telegraph 23rd April 2018 read more »
Has government gone cold on onshore oil and gas? What ministers and industry said last week. Ministers said last week they were doing everything they could to promote UK onshore oil and gas production. But that’s not how it looked to the industry speaking to investors at the weekend. In this post, Paul Seaman reports on the contrasting views at key events in Westminster: a parliamentary debate and question time on onshore oil and gas production; and the UK Investor Show at the Queen Elizabeth Conference Centre.
Drill or Drop 23rd April 2018 read more »