Today’s ESG news covers a Czech billionaire’s bold coal investments, the UK’s carbon capture funding boost, AI’s evolving role in ESG, MSCI’s appointment of a new ESG head, and New York City’s latest fossil fuel divestment proposal.
Czech billionaire Pavel Tykac doubles down on global coal investments amid energy transition
As most investors turn away from coal, Czech billionaire Pavel Tykac’s Sev.en Group is expanding its coal assets abroad, acquiring facilities in the U.S., Australia, and Vietnam. Tykac’s strategy is to capitalise on cheap valuations, betting that delays in the global energy transition will keep coal profitable outside Europe. Despite harsh criticism of the future potential of the coal industry, Pavel argues that cheap electricity has become a basic necessity of today’s world.
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Further reading: Billionaire Tykac Bucks ESG Push With Global Bet on Dirty Coal
AI seen as both a tool and a risk for ESG as global adoption peaks
A Capital Group study reveals that ESG adoption is at an all-time high. The study reveals that 90% of 1,130 global investors are ESG users. AI will play a crucial role in tackling ESG data challenges, but it comes at the price of increased energy demand for data centres. The survey highlights investors’ continued commitment to ESG despite geopolitical pressures. To keep all ESG-related data in one place, industry leaders use AI-powered ESG reporting software.
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Further reading: AI adoption for ESG research set to grow
MSCI appoints Dr. Richard Mattison as head of ESG and climate
MSCI Inc. has appointed Dr Richard Mattison as Head of ESG and Climate, effective October 29. Mattison, previously with S&P Global’s sustainability unit, will lead MSCI’s ESG product development and business strategy. With over 20 years of experience in sustainable finance, he will focus on scaling MSCI’s ESG initiatives to support investors in achieving their climate goals.
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Further reading: MSCI Welcomes Richard Mattison as New Leader for ESG and Climate Business
UK government pledges £22bn for carbon capture, but scepticism remains
With the goal of decarbonising hard-to-abate sectors like steel and cement, the UK government has pledged £22bn for carbon capture and storage (CCS) projects. While some asset owners, including pension funds, see potential in CCS, critics argue that it may extend the fossil fuel industry’s lifespan rather than accelerate the shift to cleaner energy. Despite concerns, experts agree that investing now is crucial to ensure CCS is available when needed. To make all their sustainability efforts count to the fullest, industry leaders use AI-powered ESG reporting software.
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Further reading: Can Labour’s £22bn CCS pledge capture investor interest?
NYC proposes ban for new private market investments in fossil fuel
New York City Comptroller Brad Lander has proposed banning new investments in mid- and downstream fossil fuel assets for the city’s public pension funds. Lander, emphasising the financial risks associated with climate change, is looking to build on previous divestments from fossil fuel equities. The move, supported by the Private Equity Stakeholder Project, could make NYC’s pension funds the first in the U.S. to divest from such infrastructure.
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Further reading: NYC comptroller proposes fossil fuel ban for new private market investments
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit: Markus Spiske
