Today’s ESG Updates
- JP Morgan’s Investments In Glencore: an insight into the rise of ‘sustainable’ investing as leading banks aim to promote ‘ethical’ investing to customers
- Trump’s Cryptocurrency Announcement: Trump announced five cryptocurrencies to be included in the strategic reserve causing a spike in the market
- EU Grants Automakers More Time: The EU Commission has agreed to allow European automakers three years to meet CO2 targets
- Deloitte & IIF Report: A thorough report on the financial sector and its commitment to net-zero targets
JP Morgan’s questionable ‘sustainable’ investment in Glencore, a firm with major coal mining operations
JP Morgan, alongside other world-leading banks in recent years has promoted an ‘ethical’ approach to investing but specific guidelines are somewhat misleading. Within JP Morgan’s sustainable funds’ specifications, only at least 51% of investments must have positive environmental and social impacts. Also, companies that make more than 20% of revenues from thermal coal extraction are excluded from ‘sustainable funds’ which Glencore is in line with, however in terms of actual profit, coal mining accounts for nearly half. Campaigners have expressed their anger having highlighted the environmental breaches in Glencore’s operation in South Africa’s coal belt. Companies aiming to align with authentic sustainable goals may use ESG solutions.
Photo credit: Vladimir Patkachakov
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Further reading: JP Morgan’s ‘sustainable’ funds invested £200m in mining giant Glencore | Environment | The Guardian
Trump’s announcement of cryptocurrencies in strategic reserves sends market price soaring
Following Trump’s designation of five digital assets in a new U.S. strategic reserve of cryptocurrencies, market value spiked. This announcement signals a definitive shift to US government participation in the crypto economy and may be the beginning of a regulatory framework being established. Under Joe Biden’s administration, the US government had focused on the cryptocurrency industry with hopes of protecting US citizens from fraud and money laundering. However, under Trump, the Securities and Exchange Commission has withdrawn investigations into several crypto companies. The future role of cryptocurrency in U.S. government finances is rapidly changing.
Photo Credit: Kanchanara
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Further reading: Trump names cryptocurrencies in strategic reserve, sending prices up
EU due to propose three years for automakers to reach CO2 targets
Following mounting pressure from European automakers, the EU Commission has decided to give automakers three years rather than one to reach CO2 emission targets in 2025. EU Commission president Ursula von der Leyen announced the proposal at a news conference, stating that the EU executive would allow compliance over three years. To meet this target, European carmakers would have to rely on selling more electric vehicles, a market in which they are behind Chinese and U.S. competitors.
Photo Credit: Olena Bohovyk
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Further Reading: EU to propose giving automakers three years to meet CO2 emission targets
Deloitte & IIF publish joint report: ‘The road to net zero’ on how financial firms are approaching a low carbon future
A recent joint report from Deloitte and the Institute for International Finance has released some staggering figures on financial firms and their alignment with greater ESG goals. Where in 2020, only 15% of financial firms had a CSO, now 45% do. As greenhouse gas emissions must peak in 2025 before falling over the next five years, financial firms are accelerating their commitments. Firms that do so yield positive results such as greater product innovation, integration of sustainability in corporate strategy, and sourcing of ESG data. In terms of governance, there are significant structural challenges to executing net zero goals. However, there is undeniably an industry commitment to net-zero and instilling of ESG goals in company ethos. Firms interested in committing to sustainable goals may use ESG solutions.
Photo Credit: Dan V
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Further reading: 45% of Financial Firms Appoint Chief Sustainability Officer’s: Deloitte & IIF Report
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit: Vladimir Patkachakov
