Asset Managers’ Climate Pledges: Bold Promises or Mere Rhetoric?

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InfluenceMap

InfluenceMap Asset Managers and Climate Change Report: Climate analysis of the sector’s portfolios, stewardship, and policy influence, August 2023.

Despite the wave of global commitments towards achieving net-zero emissions by 2050, the recent study InfluenceMap Asset Managers and Climate Change Report: Climate analysis of the sector’s portfolios, stewardship, and policy influence by FinanceMap paints another picture. The world’s largest asset managers, controlling an astounding $72 trillion, are falling dramatically short of their ambitious climate pledges.

FinanceMap’s analysis scrutinized the strategies of 45 titan asset management firms. Their threefold criteria encompassed portfolio alignment with climate objectives, effective stewardship of their invested companies, and genuine engagement with sustainable finance policies. The results are concerning: a staggering 95% of portfolios failed to align with the imperative IEA Net Zero Emissions by 2050 Scenario.

The research also revealed that these financial behemoths are holding nearly three times the equity value in fossil fuel enterprises compared to their ‘green’ investments. The definition of ‘green’ here leans on the EU Taxonomy and Bloomberg data. Equally alarming is the 45% dip in top-tier Stewardship asset managers since 2021, those once hailed for their groundbreaking climate stewardship practices.

Though European asset managers, such as Legal & General Investment Management, BNP Paribas, and UBS, demonstrate commendable engagement with their investee companies, their American counterparts present a grim scenario. US firms like BlackRock, Vanguard, and Fidelity Investments have shown declining or consistently low stewardship scores, hinting at a worrying trend in the US’s approach to environmental, social, and governance factors.

Even as these revelations come to light, the irony lies in the fact that 86% of these asset managers are members of at least one industry group that actively oppose the very sustainable finance policies needed for global decarbonization.

Daan Van Acker, FinanceMap’s Program Manager, summarizes the situation aptly: “While they may talk the talk, most asset managers are not walking the walk.”

For access to the report, readers can visit FinanceMap.org.

August 4th marks three years of the Great American Outdoors Act

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Yinan Chen, Public Domain, via Wikimedia Commons
Yinan Chen, Public Domain, via Wikimedia Commons

A celebration of conservation, economic growth, and recreational opportunities

The Great American Outdoors Act (GAOA) represents a vital investment in the conservation and maintenance of US public lands and Bureau of Indian Education (BIE) schools. Establishing the National Parks and Public Land Legacy Restoration Fund (GAOA LRF) provides a permanent source of funding for the Land and Water Conservation Fund (LWCF), safeguards natural areas and cultural heritage, and addresses overdue maintenance. Since 2021, GAOA has supported 17,000 jobs annually and generated $1.8 billion for local economies.

August 4 marks three-year anniversary

On August 4, the Department of the Interior will celebrate the three-year anniversary of GAOA’s enactment by waiving entrance fees at all department-managed lands. Secretary Deb Haaland highlighted the importance of GAOA in ensuring public lands are safe and accessible while also boosting the economy and preparing infrastructure to combat climate change.

The Great American Outdoors Act ensures that our public lands are safe and accessible for all visitors and staff by investing billions of dollars in infrastructure projects. I was proud to co-sponsor this historic law, which provides critical investments in our public lands to ensure they are ready to meet the challenges of climate change, while boosting the American economy by creating good-paying jobs.

As our public lands continue to meet increased visitation, GAOA complements President Biden’s Investing in America agenda to strengthen our infrastructure and prepare it to meet future needs.

—Secretary Deb Haaland

GAOA LRF is financing deferred maintenance, improving over 2,200 assets across the nation, and enhancing visitor safety and accessibility. The fund also supports Indigenous communities by enhancing BIE-funded schools and creating better learning environments for Indigenous youth.

In addition, GAOA permanently funds the LWCF at $900 million annually, which has already financed $5.2 billion for over 45,000 projects nationwide since 1965.

Celebrate GAOA’s anniversary at one of our National Parks

The National Park Service offers a plethora of outdoor recreational activities and ways to celebrate GAOA’s three-year anniversary. National Parks offer cycling, camping, and hiking, as well as cultural and natural programs including ranger talks and live performances. Many parks also host events such as music, theater, and craft demonstrations. In addition, some parks provide sports facilities for activities like golf, tennis, and running.

GAOA’s contributions are vital to President Biden’s economic agenda, creating good-paying jobs, boosting infrastructure, and fostering resilience against climate change.

Rising hope worldwide: ecocide law gains momentum in recent developments

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nature-clouds-hdr-phenomenon, 19 August 2014, 20:21, Wikimedia Commons
nature-clouds-hdr-phenomenon, 19 August 2014, 20:21, Wikimedia Commons

Global ecocide law movement promises a sustainable tomorrow

The growing global momentum for an ecocide law reflects a heightened awareness of the imperative to protect the environment for future generations. As nations unite to combat ecocide, hope for a sustainable and secure future strengthens.

Netherlands proposes ecocide law

In the Netherlands, Member of Parliament Lammert van Raan of Partij voor de Dieren (Party for the Animals) has introduced a law proposal to criminalize ecocide. The proposal, which aims to hold individuals accountable for serious environmental damage caused by human actions or inaction, is currently undergoing a four-week public consultation period. If approved by Parliament, the bill will become law, reflecting the growing social opinion on the importance of protecting the environment. This move is seen as a significant step towards preventing ecocide globally, with various organizations, including Stop Ecocide NL and Stop Ecocide International, supporting the initiative.

OSCE calls for international ecocide law

The Parliamentary Assembly of the Organization for Security and Co-operation in Europe (OSCE) has made a groundbreaking endorsement, urging its participating States to incorporate ecocide as a concept in national and international law. This endorsement, part of the Final Declaration from the 30th Annual Session in Vancouver, highlights the rising concern over microplastic and nanoplastic pollution and calls for reducing greenhouse gas emissions according to the Paris Agreement. Jojo Mehta of Stop Ecocide International welcomes this intervention, emphasizing that recognizing ecocide as a crime in both peacetime and conflict can effectively deter severe and long-term environmental harm.

Global Greens Congress backs ecocide law

At the Global Greens Congress in South Korea, representatives from Green Parties, Indigenous communities, civil society, and NGOs from around the world formally endorsed the establishment of an international crime of ecocide. The endorsement statement by the Global Greens emphasized the urgent need for legal recognition and a global framework to address ecocide. This move aims to shift attitudes, policy decisions, and cultural behavior toward protecting vital ecosystems and endangered species. The endorsement marks a collective effort to strengthen legal frameworks and accountability in environmental protection.

Kakhovka Dam destruction: A case of ecocide

In southern Ukraine, the breach of the Kakhovka Dam has caused devastating consequences for both humans and the environment. The ecological impacts of this disaster have been likened to “ecocide,” highlighting the gravity of the situation. Ukraine called on the international community to provide expertise and assistance to assess the full extent of the damage suffered. With the recognition that crimes of this scale require independent international investigations, Ukraine seeks cooperation with the International Criminal Court (ICC). The incident underscores the urgency of recognizing ecocide as a standalone crime, applicable in both wartime and peacetime, to prevent severe and widespread environmental harm.

The global momentum behind the push for an ecocide law signifies the increasing awareness of the need to protect the environment and ensure the well-being of the planet for future generations. As nations and organizations come together to address ecocide, the hope for a sustainable and ecologically secure future grows stronger.