All articles tagged with #esg investing
An FT Markets Insight op-ed argues that escalating climate damage and extreme weather threaten sovereign credit and could trigger a climate–sovereign doom loop, raising borrowing costs and squeezing adaptation budgets, with investors urged to account for climate risk in asset allocation as private insurance remains thin and the risk of market shocks grows.
A new White House order aims to limit the influence of proxy advisory firms like ISS and Glass Lewis, which could weaken shareholder rights and impact ESG considerations in investment decisions, reflecting broader efforts to shift power towards CEOs and away from activist shareholders.
President-elect Donald Trump has nominated Paul Atkins, a former SEC commissioner and critic of climate disclosure regulations, to lead the Securities and Exchange Commission. Atkins, known for his support of cryptocurrency and opposition to the SEC's climate-disclosure rule, is expected to roll back efforts promoting environmental, social, and governance (ESG) investing. Environmental groups have criticized the nomination, fearing it will undermine responsible investing and climate accountability. Atkins would replace Gary Gensler, who has been a proponent of the climate disclosure rule.
President-elect Donald Trump has nominated Paul Atkins, a former SEC commissioner and critic of climate disclosure regulations, to lead the Securities and Exchange Commission. Atkins, known for his support of cryptocurrency and opposition to the SEC's climate-disclosure rule, is expected to roll back efforts promoting environmental, social, and governance (ESG) investing. Environmental groups have criticized the nomination, fearing it will undermine responsible investing and climate accountability. Atkins would replace Gary Gensler, who has been a proponent of the climate disclosure rule.
President-elect Donald Trump has nominated Paul Atkins, a former SEC commissioner and critic of climate disclosure rules, to lead the SEC. Atkins opposes the SEC's climate-disclosure rule, which requires companies to report climate-related risks, arguing it burdens businesses. Environmental groups criticize his nomination, fearing it will undermine ESG investing efforts. Atkins, known for supporting cryptocurrency, would replace current SEC Chair Gary Gensler, who has been active in regulating the crypto industry and promoting climate disclosures.
President-elect Donald Trump has nominated Paul Atkins, a critic of the SEC's climate disclosure rule, to lead the agency. Atkins, known for his support of cryptocurrency and opposition to ESG investing, is expected to roll back regulations requiring companies to disclose climate risks. Environmental groups have criticized the nomination, fearing it will undermine responsible investing efforts. The SEC's climate rule, paused amid legal challenges, was championed by outgoing SEC Chair Gary Gensler, who will step down on Inauguration Day.
President-elect Donald Trump's nominee for the SEC, Paul Atkins, opposes the agency's climate disclosure rule, which mandates companies to report climate-related risks. Atkins, a critic of the rule, argues it burdens businesses and is unnecessary, aligning with Republican opposition. Environmental advocates fear his appointment could undermine ESG investing efforts. Atkins, known for supporting cryptocurrency, would replace current SEC Chair Gary Gensler, who backed the climate rule and targeted the crypto industry.
President-elect Donald Trump has nominated Paul Atkins, a critic of the SEC's climate disclosure rule, to lead the Securities and Exchange Commission. Atkins, known for his support of cryptocurrency and opposition to ESG investing, has argued that the climate disclosure rule burdens companies and is unnecessary. Environmental groups have criticized his nomination, fearing it would undermine efforts to promote responsible investing. Atkins would replace Gary Gensler, who has been a proponent of the climate disclosure rule and is set to step down on Inauguration Day.
Eleven states, led by Texas, have filed a lawsuit against major money managers BlackRock, Vanguard, and State Street, accusing them of colluding to reduce coal supply and increase electricity prices through ESG (environmental, social, and governance) investing strategies. The lawsuit claims these firms used their collective influence to push environmental initiatives that decreased coal production, leading to higher utility costs for residents. This legal action represents a significant conservative pushback against ESG investing practices.
Wall Street giants like JPMorgan, State Street, and Pimco have recently withdrawn from Climate Action 100+, a group of institutional investors pushing companies to address climate issues. This shift comes amid increasing criticism of "woke capitalism" and scrutiny of ESG investing, with concerns including regulatory scrutiny, antitrust regulations, and potential client disapproval. The departures mark a significant change for finance firms that have previously championed the fight against climate change, and other finance giants like BlackRock and Bank of America have also scaled back their environmentally friendly initiatives.
A coalition of 12 Republican state agriculture commissioners are investigating six large U.S. banks over their involvement in the Net-Zero Banking Alliance, expressing concerns that the banks' net-zero commitments could negatively impact American farmers, food availability, and consumer prices. The officials argue that the banks' climate initiatives may lead to impractical and costly changes in farming operations, potentially endangering the country's food security. They have requested information from the banks and are pushing back against what they see as a threat to American agriculture posed by the ESG movement.
The House Judiciary Committee has issued subpoenas to BlackRock and State Street as part of an ongoing investigation into their promotion of environmental, social, and governance (ESG) goals. The committee is examining whether advocating for ESG investing violates antitrust laws. Republicans on the committee are concerned that ESG goals could hinder asset managers from acting in the best interests of their clients and harm the U.S. economy. BlackRock and State Street have stated their commitment to cooperating with the committee's requests.
BlackRock CEO Larry Fink responded to Republican attacks during the presidential debate by launching an offensive online, targeting claims about energy and ESG (environmental, social, and governance) investing. Fink clarified that he has not endorsed any candidate for president and meets with policymakers to understand policy implications for BlackRock's clients. The debate highlighted the GOP's longstanding criticism of BlackRock's ESG embrace, with more than a dozen officials pulling investments from the firm. BlackRock defended its investment decisions, stating that it has invested $170 billion in American public energy companies, including oil and gas holdings. The firm has recently overhauled its lobbying operation to address growing pressures on its reputation and navigate a complex set of policy challenges.
President Biden's ESG (environmental, social, and governance) rule, which promotes sustainable investing, has survived a legal challenge from Republican state attorneys general. The rule, which replaced a regulation issued by the Trump administration, aims to address climate change and encourage the adoption of ESG principles in 401(k) plans. The court ruling preserves the Biden administration's positive stance on ESG investing and signals a "tonal shift" that may encourage fiduciaries to consider ESG factors in their investment decisions. However, roadblocks remain, including concerns over potential class-action lawsuits and future regulatory changes.
BlackRock, the world's largest asset manager, has seen a significant decline in its support for climate and social resolutions, according to a report by ShareAction. The report reveals that BlackRock supported only 10% of climate-related resolutions and 8% of social resolutions in 2020, compared to 23% and 16% respectively in 2019. This decline raises concerns about BlackRock's commitment to addressing environmental and social issues through shareholder activism, especially as the company has positioned itself as a leader in ESG investing.