The investor pressure on oil and gas companies to address climate change as seen in the latest proxy voting season has mounted like never before. In May, BP shareholders, representing over 99% of the votes, passed a resolution asking the company to align its business strategy and investments with the Paris Agreement. When a similar resolution was blocked by Exxon, who had asked the U.S. Securities and Exchange Commission to reject it, investors urged a vote to split the chief executive officer and board chairman roles as protest.Read More
With their widespread use across multiple sectors, from construction and infrastructure to energy and transportation, cement and steel are central to modern economy. They are also inherently energy and carbon-intensive. Taken together, those two sectors account for up to 15% of global CO2 emissions, and as the world’s population grows, emissions are only projected to increase.Read More
Still more institutional investors are divesting from coal companies to protect their investments against stranded assets. It is understandable, because most coal companies are not aligned with the well below two-degree goal. However, it raises a dilemma, because the reduced investor owners’ pressure on the coal majors due to divestment can make it more difficult to reach the Paris Agreement. This third blog in our climate series presents the results of Engagement International’s engagement with coal companies over the past three years, which can further inform investors’ strategies to the controversial industry.Read More
Electric utilities are among the biggest climate change contributors. Globally the sector is responsible for 25% of CO2 emissions, mainly due to its significant reliance on fossil fuels for energy generation.Read More
On behalf of institutional investor clients, Engagement International has evaluated and engaged with the 100 listed companies that contribute the most to climate change since the Paris Agreement was adopted in December 2015. Through in-person meetings and conference calls every six months over the past three years, we seek to encourage the companies to align their business with the well-below two-degree goal. This blog is the first of a climate series, in which we will discuss the premise and results of the engagement project “Top 100 Climate Change Contributors” (Top100CCC).Read More
Last week the EU conference gathered together experts representing various fields, including policy-makers, investors, academia, trade unions and environmentalists, with the aim to reflect on how to foster more sustainable governance in line with the Action Plan on Financing Sustainable Growth. The key message emerging from the event points out that if we want sustainable finance, we need sustainable corporate governance.Read More
ESG Engagement is mostly used for responsible investment in listed equities. However, according to a new report from PRI, engagement can also be beneficial, when it comes to corporate bonds. Read more in the latest Økonomisk Ugebrev article (in Danish).
Read about the main results of the engagement Engagement International has conducted with the 100 listed companies that are contributing the most to climate change in a new article in Økonomisk Ugebrev (in Danish).
96% of the 50 largest institutional investors in Denmark now have a set-up for responsible investment compared to 88% in 2015. Active ownership or engagement is an essential element for two-thirds of these investors, according to a new study from the Dansif, the association of responsible investors in Denmark.Read More
Read about the 25 largest climate sinners since 1988 and their (lack of) willingness to support the Paris Agreement, according to Engagement International’s dialogue with the companies. Article in Danish Økonomisk Ugebrev.
Just before Easter, the European Union finally adopted the Shareholders’ Rights Directive that is encouraging institutional investors to behave more as active and responsible owners. After ten years of dispute, the European Council followed the EU Commission and Parliament and gave its green light for the comprehensive directive that applies to more than 8.000 listed companies. The member states have now up to two years to transpose the new provision into domestic law.Read More
Extremely high payments to CEOs are often explained by the “fact” that they get “peanuts” compared to the much higher financial value they are creating for shareholders. In Denmark, it has recently been the answer to the many critics of the IPO of Nets, which resulted in a gain of nearly USD 100 million for the CEO. And the answer was similar when it was known that America’s new foreign minister, Rex Tillerson, raised an annual compensation of USD 27 million as CEO of Exxon Mobil and an even greater amount when he said goodbye to the oil company. However, two independent studies based on the US data prove that the truth is rather the opposite.Read More
During the last months of 2016, Engagement International engaged on behalf of institutional investors with 28 of the 100 listed global companies that are contributing the most to climate change – now or potentially later, due to their fossil fuel reserves. About 40% of the companies have a clear commitment to the Paris Agreement and are explicit about their own responsibility to contribute to the two-degree-goal. However, in general, the highly exposed energy-, mining-, steel- and cement companies need to do much more. Two thirds have shown an increasing carbon emission intensity over the last five years. And a new set of very ambitious financial disclosure recommendations from the Financial Stability Board (FSB) will push not only these highly climate change exposed companies, but organisations in all industries to adopt a better management of their climate risks and opportunities.Read More
The amount of responsible investments in Europe and the US has grown significantly the past two years and strategies are getting still more sophisticated. It began more than 250 years ago with religiously inspired exclusions of companies that could be associated with alcohol, tobacco, weapons etc. This first generation approach is still the most dominating strategy according to new surveys from Eurosif, US SIF and PRI. However, in Europe engagement and voting have grown more than 30% the last two years.Read More
Climate change mitigation efforts gained its momentum in October, when European Union jointly ratified the Paris Agreement to limit global warming. At the same time the debate in Poland is ongoing over the need of a comprehensive energy strategy until 2050. Although the EU countries share common interests, they face different challenges.Read More
There are many indications that Denmark now must relinquish its position as the country with the least corrupt public sector, according to Transparency International. Danish Police has arrested nearly 50 current and former public servants and accused them for being bribed with smartphones, computers and other electronic equipment from the IT vendor Atea. The case is the largest of its kind in Denmark and embarrassing, especially because the persons arrested work for the National Police, the Armed Forces, the Military Intelligence Services, the Public Prosecutor’s Office, the Ministry of Foreign Affairs and the City of Copenhagen.Read More