investments
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Oil and gas firms hide climate impacts in investments
A new study shows that oil and gas companies often fail to report emissions from their investments, obscuring the true climate impact of their operations.
In short:
- Clarity AI found that accounting for investment-related emissions would increase the carbon footprint of the top 20 oil and gas companies by 24%.
- The study highlights that 90% of the world's largest oil companies do not report emissions from joint ventures, complicating accurate climate risk assessment for investors.
- Scope 3 emissions, which include emissions from a company's entire value chain, are 26 times greater than direct emissions, according to Boston Consulting Group.
Key quote:
"I'm a strong believer that traditionally, we have relied way too much on the data that companies are reporting."
— Patricia Pina, Clarity AI
Why this matters:
Accurate emissions reporting is crucial for investors to assess climate risks and make informed decisions. Without transparency, fossil fuel companies may not face enough pressure to transition to sustainable practices, delaying necessary action to combat climate change.
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Federal incentives drive Midwest clean energy manufacturing boom
The Midwest is seeing a surge in clean energy investments, with $30 billion in private capital flowing in since the Inflation Reduction Act was passed in 2022.
In short:
- Midwestern states, including Michigan, Indiana, and Ohio, have attracted significant investments for clean energy projects.
- The region's manufacturing heritage is helping it become a hub for electric vehicles, batteries, and renewable energy equipment.
- More than 300 major clean energy projects have been announced nationwide since 2022, with the Midwest receiving about a quarter of the $123 billion total investment.
Key quote:
“This is like a new era in American manufacturing as it switches to clean energy.”
— Michael Timberlake, E2 communications director
Why this matters:
The investment surge is being funneled into a variety of renewable energy initiatives, from wind and solar farms to advanced battery storage and electric vehicle infrastructure. These projects are set to reduce the region's reliance on fossil fuels, cutting down on greenhouse gas emissions and air pollution. For states long dominated by traditional manufacturing and coal industries, this transition marks a significant pivot towards a greener future.
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Legal complaints against university fossil fuel investments filed in the US
Students at Columbia, Tulane and the University of Virginia have legally challenged their universities' investments in fossil fuels, claiming these are illegal and breach institutional obligations.
In short:
- Students argue investments in fossil fuel companies contradict the schools’ missions of promoting " socially beneficial ends."
- They highlight conflicts of interest with faculty and board members receiving payments from the fossil fuel sector.
- Legal actions align with broader divestment efforts and increased scrutiny of fossil fuel influence in academia.
Key quote:
"Universities occupy a unique position as a bastion of values and morals the best of society should strive for. When Columbia refuses to commit to divestment, it hinders those very same principles and continues a blatant disregard of the important climate work its own faculty, students and affiliates do."
— Nicole Xiao, second-year Columbia student studying climate systems science.
Why this matters:
Universities investment strategies set precedents, affecting public perceptions and policies on critical issues like climate change. As of 2023, more than 1,500 institutions representing more than $40 trillion in assets have pledged to stop investing in fossil fuel companies.
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Newsletter
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Banks pressured to tighten climate strategies for agriculture sector
Despite constituting a small fraction of their portfolios, big banks' financing of the industrial livestock industry plays a disproportionately large role in global greenhouse emissions, a recent environmental report reveals.
In short:
- A new report indicates big banks' funding of the industrial livestock sector is significant for its climate impact, despite being a minor part of their loan portfolios.
- Among the banks, three major ones account for 60% of financial backing to the largest animal agriculture companies, which are key in emissions.
- Proposed solutions include mandatory emissions reporting and reduction plans for these companies, aligning with global climate objectives.
Key quote:
"We're saying to them, 'Look, this is something that is a very, very tiny portion of your portfolio, but could actually make massive strides towards your own stated climate commitments,'"
— Monique Mikhail, campaigns director of Friends of the Earth’s Agriculture & Climate Finance program
Why this matters:
The financing from major banks helps sustain and expand these operations, directly linking them to the environmental impact associated with industrial livestock farming. This support extends not only to the farms themselves but also to the entire supply chain, including feed production, animal breeding, meat processing, and distribution networks, all of which contribute to the carbon footprint of the industry.
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UAE eyes investment in European nuclear projects for a green shift
In a strategic move toward sustainable energy, the UAE signals interest in investing in European nuclear energy projects.
In short:
- The UAE is exploring investments in European nuclear energy, targeting infrastructure stakes without direct management.
- Discussions with the UK on the Sizewell C project highlight the UAE's broader strategy to diversify from oil and support clean energy transitions.
- This move aligns with global efforts to enhance nuclear capacity, signaling a significant shift towards sustainable energy sources.
Key quote:
"Sizewell C is a crucial part of the UK's agenda for new nuclear power, which is central to our plans for achieving a low cost, clean and secure electricity system."
— spokesperson for Britain's Department for Energy Security and Net Zero
Why this matters:
By diversifying their energy mix with nuclear power, regions can reduce their reliance on imported fossil fuels, which are often subject to geopolitical tensions and price fluctuations. This move towards self-sufficiency is especially pertinent for European nations seeking to mitigate their dependence on gas imports, particularly from regions with unstable political climates.
In 2018, Peter Dykstra wrote about the apparent slow death of nuclear power.
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Pension funds in Canada are behind on addressing climate-induced financial risks, according to a report
A new report criticizes Canadian pension funds for inadequate responses to the financial risks posed by climate change, demanding more proactive measures.
In short:
- Canadian pension funds are under scrutiny by Shift Action for not adapting their investments to mitigate climate crisis risks.
- The analysis shows a significant gap between Canadian pensions and their global counterparts in climate progress.
- Shift Action's report calls for urgent, transparent action from pension funds to align with climate targets and avoid economic repercussions.
Key quote:
"The risks of a warming world are considerable Failing to have a credible and ambitious climate plan is a recipe for underperformance in the years to come."
— Adam Scott, executive director of Shift Action
Why this matters:
Pension funds play a vital role in shaping the future economy, influencing the health outcomes of the public and the environmental sustainability of the nation. The direction taken by these funds can significantly impact both immediate and long-term public health and environmental resilience.
Meanwhile, utilities’ fossil fuel investments are driving up rates for the most vulnerable.
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Shell faces shareholder rebellion over climate activist resolution
Shell’s board faces a shareholder rebellion as large investors including the UK’s biggest pension scheme prepare to back a climate activist resolution.
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