Subbu Loganathan’s Post

$25 billion for green investments over the next six years from CalPERS pension fund. Funding for the energy transition at this scale is only to be welcomed (and many more investors must follow suit to get close to filling the current private finance gap). Yet, without attention to the governance and benefit-sharing dimensions of renewables and other forms of green investment, we risk having an insufficient pipeline of viable projects, and projects stalling and/or failing to deliver on their potential emissions and broader social and environmental benefits. Ambitions for renewables capacity are already being scaled back in Europe. [https://lnkd.in/dfHi-Ut8] There are critical concerns around participation and accountability that merit close attention. Corruption risks are one factor – as highlighted in a symposium hosted by the World Bank and partners earlier this month. Major investors – both public and private – need to look more urgently at these dimensions. Perhaps it’s past time for a climate investment governance hub? #climatefinance #energytransition #justtransition #renewables #governance #corruption #participation Mark Robinson Maja de Vibe Alexandra Manea, PhD Sebastian Sahla Robin Varghese Leila Kazemi Lisa Sachs https://lnkd.in/dvvy8ti3

Recent reports have revealed that Australia's largest super funds have doubled their investments in fossil fuel companies, totaling over $34 billion.....at the same time reducing their investment in clean energy by half a billion dollars. How much of this has been done under the wrappers of sustainable funds? How horrified would an average investor be if it was their super - remembering that super is the main investment vehicle for people under 40. This significant investment in climate-wrecking industries highlights the critical role financial advisers must play in helping their client cut through the noise. #financialadvise #ESG #Sustainability

Interesting article - highlighting when subsidies are withdrawn - we still need to address the commercial viability of green technologies both in development and long term sustainability. This includes on going maintenance the biggest financial killer especially over large geographic areas. https://lnkd.in/gD_3AWy8

Top1000funds.com Investors trying to change the world: Why climate investing is so difficult. Responsible asset owners are preparing their portfolios for the climate transition, reducing holdings in companies with high emissions and pledging billions to climate investments. But climate proofing portfolios is proving one of the most arduous and complex challenges investors have ever faced. https://lnkd.in/eC9PmRcj Fjärde AP-fonden (AP4) Pictet Asset Management CPP Investments | Investissements RPC CalSTRS Universities Superannuation Scheme (Ltd) NZ Super Fund HOOPP (Healthcare of Ontario Pension Plan) #climatechange #netzero #investing #renewables #assetallocation

Today, Aviva Investors launches its latest report, Boosting Low Carbon Investment in the UK: a Policy Roadmap. My wonderful colleague Sophie English and I have been working on this for many months. After extensive consultation with our different investment desks and discussions with businesses from across the economy, we put forward public policy priorities for the next five years to overcome hurdles that are currently preventing private investors to commit capital to low carbon infrastructure and businesses at the pace, scale, and affordable cost needed to build a competitive low carbon economy in the UK. This Roadmap first looks at cross-economy solutions to unlock low carbon investment across multiple sectors, such as planning and carbon pricing reform and an action plan to tackle skills gaps in sectors such as construction, renewable energy, and heavy industry. Our Roadmap then does a deep dive on eight key sectors that are essential to decarbonise and where improving risk adjusted returns for private investors could unlock significant private capital: power, heavy industries (such as steel, cement, and chemicals), buildings (energy efficiency and heat), surface transport (cars, vans, HGVs, buses, and rail), aviation, shipping, nature restoration, and engineered greenhouse gas removals. You can read more about our Roadmap by clicking on the link below, we look forward to engaging with many of you on it: https://lnkd.in/embtMPaX A big thank you to our CEO Mark Versey and Chief Sustainable Finance Officer Steve Waygood for giving us the space and support to carry out this project. We also hugely appreciate the feedback received from so many external experts including Professor Jim Watson (University College London), Professor Robert Gross (UK Energy Research Centre), Chris Stark (then at Climate Change Committee), Matthew Bell (Frontier Economics), Sam Peacock and Alistair McGirr (SSE), Michelle Hubert (National Grid), Ana Musat (Renewable UK), Adam Berman and Dhara Vyas (Energy UK), Martin Casey (Cemex), Matthew Knight (Siemens Energy), Andy Walker and Sam French (Johnson Matthey), Daphne Vlastari (BASF), David Johnson (Michelin UK), Arjan Geveke (Energy Intensive Users Group), Ben Richards and Nick Lakin (Kingfisher), Julia Barrett (Willmott Dixon), David Symons (WSP), Steven Fitzgerald (Ryanair), Adam Read and Stuart Hayward-Higham (Suez Recycling and Recovery UK), Signe Norberg and Rachel Solomon Williams (Aldersgate Group), James Alexander and Oscar Warwick Thompson (UK Sustainable Investment and Finance Association). #netzero #climate #greenfinance #IndustrialStrategy       

At the end of June, the British Columbia Investment Management Corporation (BCI), the $233-billion investment manager for 740,000 public sector workers in BC, published its 2023-2024 Corporate Annual Report and other climate disclosures. Click through to read our full climate and energy analysis. The report shows that BCI is making progress on aligning its portfolio with a safe climate. It has surpassed its 2025 target for investing in sustainable bonds, exceeded its 2025 target to reduce the emissions intensity of its public equities portfolio and is beginning to report progress toward engaging its highest-emitting companies to develop mature net-zero plans. The investment manager has laid out strong climate expectations in its proxy voting guidelines, is disclosing some details of engagement to stakeholders and has recently raised its voice on key climate policy engagements, such as by responding to Environment and Climate Change Canada consultations on methane regulations.   But to make its approach to climate-related risks comprehensive and credible, BCI still must fill in the missing pieces by: -Committing to net-zero financed emissions by 2050 at the latest; -Setting interim portfolio-wide emissions reduction targets (both intensity-based and absolute); -Measuring and disclosing the emissions of BCI’s Infrastructure & Renewable -Resources portfolio, and setting targets to reduce them, backed by credible transition plans; -Backing its engagement of high-carbon companies with an escalatory approach to divestment;   -Placing an exclusion on new fossil fuel investments; -Developing a phase-out plan for existing fossil fuel assets; -Setting an ambitious target for investments in climate solutions. BCI has made some encouraging moves in a climate-aligned direction, and it’s time for the investment manager to add it all up and create a comprehensive, credible climate strategy. #cdnpoli #bcpoli #sustainablefinance #pensions https://lnkd.in/gipGmZWt

As European Investment Bank (EIB) is heralding itself as a leader in green finance, Accountability Counsel associate Sutharee Wannasiri asks a key question: "With EIB's spotty compliance with its own rules and its failure to hold itself responsible for the damage its projects have caused, how can the bank be truly equipped to select green projects and de-risk them for the private sector?" Sutharee also outlines a way forward for the EIB's new president and new head of its complaints mechanism: reform the mechanism and actually respond to its findings. Doing that will result in more sustainable projects that are actually green.

We get approached by investors every week, looking to invest in Solar Monkey. Some love our mission. Others love the high returns. The magic lies in the combination. Recently I got approached by an investor who invests in 'green solutions', but at the same time invests $145,000,000,000 in fossil fuels. My answer below (anonymised). Next year we might be raising again, looking for investors who actually support our mission:) ** Hi XX, Following your previous email I've been reflecting on the alignment of mission, purpose and culture between our organisations. But I don't think there is a sufficient match. Pls allow me to elaborate: By 2070 climate change is expected to have heated our planet to such an extent that billions of people will live in areas now considered uninhabitable. This will cause refugee streams of hundreds of millions, and have catastrophic consequences. Burning fossil fuels is the main contributor to causing climate change. On top of that, burning fossil fuels causes insane amounts of local pollution and health issues. Our belief at Solar Monkey is that we need to work hard to get away from fossil fuels asap. Alternatives are readily available, better and even cheaper. Solar will be the world's leading power supply by 2050. Now the point is... [INVESTOR] invests in fossil fuels and is working against climate change mitigation efforts. In the last 7 years, [INVESTOR] poured $145 billion into fossil fuels. By doing so the company is a big contributor to climate change, and the billions of people harmed by it. Your $1.6B of 'green investments' is nothing compared to what you invest on the opposite side. [INVESTOR] CEO claims that 'it would be stupid to move away from fossil fuel investments'. => being so invested in fossil fuels gives [INVESTOR] a strong financial incentive to prolong the era of fossil fuels. => the actions of [INVESTOR] demonstrate that their own profits are prioritised above the wellbeing of people and planet. This gives me the impression that you invest in climate solely for profit, not because you actually want to have a positive impact. In that light it makes complete sense to say that it would be stupid to move away from fossil fuel investments. => I read the purposeful mission you shared. But I judge someone based on their actions, not on their words. We are looking for partners and investors who share our ideals of wanting to create a better and cleaner world. Who are willing to make sacrifices for the better if needed. To stick their necks out, take risks and change the status quo. Who see profit as the fuel to drive the mission, rather than the goal itself. We love making money, but it also gives us the responsibility to use it wisely. Probably you personally have very positive ambitions. You are doing what feels good to you, I respect that. But it does not change my conclusion that I see no match between our organisations. Wishing you all the best in finding other investment opportunities.

The new responsible investment policy from the trustee of our master trust, The Peoples Pension, highlights its expectations on its asset managers and as part of the minimum requirements, it expects a commitment to net zero and adequate stewardship resourcing. Asset managers will be expected to support in achieving its emissions reduction targets, which are: Net zero greenhouse gas (GHG) emissions by 2050; halving GHG emission intensity by 2030 for the Scheme’s growth assets and 30% GHG emissions intensity reduction by 2025 for the developed equity portion of the portfolio. 🙌🌏 Read more here: https://bit.ly/3UBUZjC

So much good news!! And it's only Wednesday. I caught Chris Stark's appointment - which I would think dovetails into something I missed! A new National Wealth Fund - over £7bn public money to attract billions more for green investments! And no mention of green or sustainability in the title. Brilliant. This is our wealth. It is what we have and what we value; our (sustainable) future. https://lnkd.in/dGp8rMeU #nationalwealthfund #sustainablefuture #climateaction Green Finance Institute Department for Energy Security and Net Zero #rewired Rewired Earth