From Wikipedia, the free encyclopedia

I'm about to retitle section 8 as "Policies, politics and finance" and add subsection 8.4 "Finance". My draft of subsection 8.4 includes the following: (for detailed references, see the draft)

  • A paragraph on investor preferences, with these references: - "Do investors care about carbon risk?", Journal of Financial Economics - "The Evolving Landscape of Big Data Analytics and ESG Materiality Mapping", The Journal of Impact and Esg Investing
  • A paragraph on environmental, social, and corporate governance (ESG), with these references: "Five ways that ESG creates value". McKinsey - "The Best ESG Funds Of July 2022". Forbes Advisor - "It's Not Easy Being Green: Bringing Transparency and Accountability to Sustainable Investing". U.S. Securities and Exchange Commission
  • A paragraph on carbon credits, with this reference: "What are carbon credits? How fighting climate change became a billion-dollar industry". NBC News
  • Two paragraphs on the transition away from fossil fuels, with these key references: "The big choices for oil and gas in navigating the energy transition". McKinsey & Company - "World's top banks pumped $742 bln into fossil fuels in 2021 - report". Reuters - "Why the divestment movement is missing the mark". Nature Climate Change

Here is the draft for the new subsection 8.4:

Finance

By the end of 2021, investors were expressing a preference for businesses that act to reduce CO2 and methane pollution. [1] Improved ways of handling computer data were beginning to help identify "climate responsible" businesses, governments and other organizations. [2]

The concept of Environmental, social, and corporate governance (ESG) provided businesses with a way to commit to sustainable practices. [3] Many mutual funds, index funds and exchange-traded funds (ETFs) have specialized to invest in ESG businesses. [4] In May of 2022 the United States Securities and Exchange Commission (SEC) expressed concern that exaggerated or false claims about ESG practices (an example of greenwashing) could be misleading investors. [5]

In addition to conventional forms of financing, carbon credits have provided a unique but sometimes abused way to direct investments into carbon reduction projects. [6]

It’s been difficult to forecast future allocation of investment between non-sustainable and sustainable energy sources. By 2021 oil and gas companies needed to develop new policies and strategies in the face of an uncertain future for fossil fuel use. [7] As of mid-2022 the transition away from fossil fuels was expected to be bumpy, complicated by the Russo-Ukrainian War. [8] [9] Climate action advocates expressed concern that large banks continued to fund expansion of oil, gas and coal. [10]

By autumn 2020, as measured in US dollars, institutional investors managing $14 trillion worth of assets worldwide had committed to sell some or all of their fossil fuel holdings. [11] The Global Sustainable Investment Alliance reported that as of December 31 2019 the equivalent of $35 trillion US dollars were invested in sustainable assets within the 5 major economies of the United States, Europe, Japan, Canada and Australasia. [12]

  1. ^ Bolton, Patrick (November 2021). "Do investors care about carbon risk?". Journal of Financial Economics. 142 (2): 517–549. doi: 10.1016/j.jfineco.2021.05.008. Archived from the original on 7 July 2022. Retrieved 13 July 2022 – via Science Direct. {{ cite journal}}: |archive-date= / |archive-url= timestamp mismatch; 16 June 2022 suggested ( help)
  2. ^ Gopal, Sucharita (22 November 2021). "The Evolving Landscape of Big Data Analytics and ESG Materiality Mapping". The Journal of Impact and Esg Investing. 2 (2): 77–100. doi: 10.3905/jesg.2021.1.034. |s2cid=245744494. Archived from the original on 25 February 2022. Retrieved 24 February 2022 – via Portfolio Management Research.
  3. ^ Henisz, Witold (14 November 2019). "Five ways that ESG creates value". McKinsey. Archived from the original on 14 July 2022. Retrieved 29 July 2022.
  4. ^ Berger, Rob (1 July 2022). "The Best ESG Funds Of July 2022". Forbes Advisor. Retrieved 29 July 2022.{{ cite web}}: CS1 maint: url-status ( link)
  5. ^ Lee, Allison (25 May 2022). "It's Not Easy Being Green: Bringing Transparency and Accountability to Sustainable Investing". U.S. Securities and Exchange Commission. Archived from the original on 15 July 2022. Retrieved 29 July 2022.
  6. ^ Thompson, Lucas (30 October 2021). "What are carbon credits? How fighting climate change became a billion-dollar industry". NBC News. Archived from the original on 31 July 2022. Retrieved 31 July 2022.
  7. ^ Beck, Chantal (10 March 2021). "The big choices for oil and gas in navigating the energy transition". McKinsey & Company. Archived from the original on 15 March 2021. Retrieved 31 July 2022.
  8. ^ Eckhouse, Brian (20 April 2022). "Energy Transition Still Means Billions in Fossil-Fuel Investment". Bloomberg. Archived from the original on 25 April 2022. Retrieved 2 August 2022.
  9. ^ "Short-Term Energy Outlook". U.S. Energy Information Administration. 12 July 2022. Archived from the original on 13 July 2022. Retrieved 2 August 2022.
  10. ^ Jessop, Simon (30 March 2022). "World's top banks pumped $742 bln into fossil fuels in 2021 - report". Reuters. Archived from the original on 31 March 2022. Retrieved 4 August 2022.
  11. ^ Mormann, Felix (2 November 2020). "Why the divestment movement is missing the mark". Nature Climate Change. 10 (December 2020): 1067–1068. doi: 10.1038/s41558-020-00950-2. ISSN  1758-678X.
  12. ^ "Global Sustainable Investment Review 2020" (PDF). Global Sustainable Investment Alliance. p. 5. Archived (PDF) from the original on 3 July 2022. Retrieved 26 March 2022.
From Wikipedia, the free encyclopedia

I'm about to retitle section 8 as "Policies, politics and finance" and add subsection 8.4 "Finance". My draft of subsection 8.4 includes the following: (for detailed references, see the draft)

  • A paragraph on investor preferences, with these references: - "Do investors care about carbon risk?", Journal of Financial Economics - "The Evolving Landscape of Big Data Analytics and ESG Materiality Mapping", The Journal of Impact and Esg Investing
  • A paragraph on environmental, social, and corporate governance (ESG), with these references: "Five ways that ESG creates value". McKinsey - "The Best ESG Funds Of July 2022". Forbes Advisor - "It's Not Easy Being Green: Bringing Transparency and Accountability to Sustainable Investing". U.S. Securities and Exchange Commission
  • A paragraph on carbon credits, with this reference: "What are carbon credits? How fighting climate change became a billion-dollar industry". NBC News
  • Two paragraphs on the transition away from fossil fuels, with these key references: "The big choices for oil and gas in navigating the energy transition". McKinsey & Company - "World's top banks pumped $742 bln into fossil fuels in 2021 - report". Reuters - "Why the divestment movement is missing the mark". Nature Climate Change

Here is the draft for the new subsection 8.4:

Finance

By the end of 2021, investors were expressing a preference for businesses that act to reduce CO2 and methane pollution. [1] Improved ways of handling computer data were beginning to help identify "climate responsible" businesses, governments and other organizations. [2]

The concept of Environmental, social, and corporate governance (ESG) provided businesses with a way to commit to sustainable practices. [3] Many mutual funds, index funds and exchange-traded funds (ETFs) have specialized to invest in ESG businesses. [4] In May of 2022 the United States Securities and Exchange Commission (SEC) expressed concern that exaggerated or false claims about ESG practices (an example of greenwashing) could be misleading investors. [5]

In addition to conventional forms of financing, carbon credits have provided a unique but sometimes abused way to direct investments into carbon reduction projects. [6]

It’s been difficult to forecast future allocation of investment between non-sustainable and sustainable energy sources. By 2021 oil and gas companies needed to develop new policies and strategies in the face of an uncertain future for fossil fuel use. [7] As of mid-2022 the transition away from fossil fuels was expected to be bumpy, complicated by the Russo-Ukrainian War. [8] [9] Climate action advocates expressed concern that large banks continued to fund expansion of oil, gas and coal. [10]

By autumn 2020, as measured in US dollars, institutional investors managing $14 trillion worth of assets worldwide had committed to sell some or all of their fossil fuel holdings. [11] The Global Sustainable Investment Alliance reported that as of December 31 2019 the equivalent of $35 trillion US dollars were invested in sustainable assets within the 5 major economies of the United States, Europe, Japan, Canada and Australasia. [12]

  1. ^ Bolton, Patrick (November 2021). "Do investors care about carbon risk?". Journal of Financial Economics. 142 (2): 517–549. doi: 10.1016/j.jfineco.2021.05.008. Archived from the original on 7 July 2022. Retrieved 13 July 2022 – via Science Direct. {{ cite journal}}: |archive-date= / |archive-url= timestamp mismatch; 16 June 2022 suggested ( help)
  2. ^ Gopal, Sucharita (22 November 2021). "The Evolving Landscape of Big Data Analytics and ESG Materiality Mapping". The Journal of Impact and Esg Investing. 2 (2): 77–100. doi: 10.3905/jesg.2021.1.034. |s2cid=245744494. Archived from the original on 25 February 2022. Retrieved 24 February 2022 – via Portfolio Management Research.
  3. ^ Henisz, Witold (14 November 2019). "Five ways that ESG creates value". McKinsey. Archived from the original on 14 July 2022. Retrieved 29 July 2022.
  4. ^ Berger, Rob (1 July 2022). "The Best ESG Funds Of July 2022". Forbes Advisor. Retrieved 29 July 2022.{{ cite web}}: CS1 maint: url-status ( link)
  5. ^ Lee, Allison (25 May 2022). "It's Not Easy Being Green: Bringing Transparency and Accountability to Sustainable Investing". U.S. Securities and Exchange Commission. Archived from the original on 15 July 2022. Retrieved 29 July 2022.
  6. ^ Thompson, Lucas (30 October 2021). "What are carbon credits? How fighting climate change became a billion-dollar industry". NBC News. Archived from the original on 31 July 2022. Retrieved 31 July 2022.
  7. ^ Beck, Chantal (10 March 2021). "The big choices for oil and gas in navigating the energy transition". McKinsey & Company. Archived from the original on 15 March 2021. Retrieved 31 July 2022.
  8. ^ Eckhouse, Brian (20 April 2022). "Energy Transition Still Means Billions in Fossil-Fuel Investment". Bloomberg. Archived from the original on 25 April 2022. Retrieved 2 August 2022.
  9. ^ "Short-Term Energy Outlook". U.S. Energy Information Administration. 12 July 2022. Archived from the original on 13 July 2022. Retrieved 2 August 2022.
  10. ^ Jessop, Simon (30 March 2022). "World's top banks pumped $742 bln into fossil fuels in 2021 - report". Reuters. Archived from the original on 31 March 2022. Retrieved 4 August 2022.
  11. ^ Mormann, Felix (2 November 2020). "Why the divestment movement is missing the mark". Nature Climate Change. 10 (December 2020): 1067–1068. doi: 10.1038/s41558-020-00950-2. ISSN  1758-678X.
  12. ^ "Global Sustainable Investment Review 2020" (PDF). Global Sustainable Investment Alliance. p. 5. Archived (PDF) from the original on 3 July 2022. Retrieved 26 March 2022.

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