Search

Research under the microscope

The Carbon Clean 200

By Andy Behar, Michael Yow and Toby A.A. Heaps
Investing in a clean energy future

Over the past five years, and growing dramatically leading up to and post-Paris COP 21, a movement of institutional and individual investors representing more than $3.4tn in assets under management have divested a portion of their fossil fuel investments and committed to divesting the balance in the next five years. The corollary of divesting fossil fuels is re-investing in the clean energy future. As an invitation to a larger discussion of how we can invest in a clean energy future, we created the Carbon Clean 200 (Clean200TM) – a list of the 200 largest companies worldwide ranked by their total clean energy revenues.

Continue Reading...

Integrating sustainability performance into investment strategies and decision-making

Investors – what’s in it for them?

The number of investors who are integrating sustainability performance into their investment strategies and decision-making is on the rise. The number of signatories to the United Nations-supported Principles for Responsible Investment, an international network of investors working together to put the six Principles for Responsible Investment into practice, rose from 100 in April 2006 to 1,380 in April 2015, representing US$59 trillion in assets under management.

Continue Reading...

Empowering responsible investing for long-term prosperity

Despite the notable progress made in corporate sustainability reporting, there is still much room for improvement.

Last September, the Rockefeller Brothers Fund announced its pledge to divest its fossil fuel holdings as part of a larger divestment movement that aims to deprive the industry of up to $50 billion (U.S.). Later that month, the Montreal Carbon Pledge was launched where investors commit to measure and publicly disclose the carbon footprint of their investment portfolios on an annual basis. To date, investors representing assets under management of $1.2 trillion have committed to the pledge.

Add to the above fact that there is currently about $45 trillion of assets under management by 1,314 United Nations Principles for Responsible Investment (UNPRI) signatories – up from only $4 trillion back in 2006. UNPRI signatories commit to integrate six principals covering environmental, social and governance issues into their investment decision making and ownership practices.

Continue Reading...

Emission impossible

Why don’t we know how much carbon companies are creating in their supply chains?

A significant portion of the greenhouse gas (GHG) emissions produced by major companies still haven't been measured.

We have a pretty good idea of how much carbon large companies emit when they make products because most of them are reporting those emissions regularly. But what about the emissions that are not as easily linked to a company’s activities? Think of, transportation in vehicles not owned by the company, outsourced activities, waste disposal and even the use of the product by the consumer.

Continue Reading...

The need for speed

Investors can't make responsible decisions if companies don't release their sustainability data on time.

Companies may be spending too much time producing glossy reports about their good deeds and not enough time giving investors the information they need to make responsible decisions.

An often-overlooked problem with sustainability reports is that companies are slow to release them. This is partly because regulators do not enforce strict disclosure timelines, and partly because companies spend a lot of time and money producing reports for public consumption.

“Sustainability reports aren't primarily designed for investors, they’re designed for a wider stakeholder group with slightly different needs,” said Michelle de Cordova, director of corporate engagement and public policy at NEI Investments, which is home to Canada’s largest team of in-house socially responsible investment specialists.

Continue Reading...