Eighteen months ago, the fund started by former US banker David Di Pilla announced its target to achieve net-zero for scope 1 and scope 2 emissions by FY28. Alongside this came an energy road map and the first phase of its ‘Energy Management System’, which was subsequently rolled out across 18 sites.
As Australia’s energy transition ramps up, spurred by a greater government commitment, the ethical investment manager says investors risk getting saddled with “stranded assets” if they don’t limit their exposure to fossil fuels.
Taking a long-term view of disruptive trends, and their implications on long-term asset class forecasts and strategic allocation, Amundi shares its updated annual capital market assumptions publication.
Using Coles as a case study, Australian Ethical demonstrates how sustainability-minded money managers are dealing with the nuanced issues involved in appraising the activities of big companies.
The ethical money manager says Lendlease failed to provide information required to independently assess the impact of its planned development in Mt Gilead, an area deemed critical to the survival of a resident koala colony.
Being independent used to be enough to attract new clients, says Wattle Partners’ Drew Meredith. Today, they are increasingly demanding alignment with their own values.
Check out a selection of the images from The Inside Network’s inaugural ESG event in Tasmania, which saw a host of advisers, thought leaders and consultants share ideas on all things sustainability.
It now sits aside recycling, reducing energy consumption and using biodegradable products as one of the most common methods of making a positive impact according to research from Australian Ethical and Investment Trends.
For ESG discourse to matter, it must translate into quantifiable action. That means broadening the conversation beyond the close circle of sustainability converts and having tough conversations about capital flows.
All advisers have a role to play in the transition to ESG, and it will be a spectrum of outcomes rather than a binary one. One thing we cannot forget, however, is the powerful role that capital flows can have on creating change.
The continuation of an economic world built on linear consumption, LGT Crestone’s Rachel Etherington says, will further burgeoning social and economic issues that threaten to destabilize the global system.
Despite a backdrop of weaker returns and uncertainty, Australian Ethical has continued to grow via great engagement and ‘consumer love’.
Many are seeking to oversimplify ESG, which is an inherently complex part of investing, while others are overcomplicating what is really a simple consideration.
In the wake of the pandemic, investors have continued to pile money into variously labelled ESG/sustainable funds. Are they doing what they say?
