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Fossil fuel exploration, mining and production
The United Nations Climate Action website confirms that fossil fuels - coal, oil and gas - are by far the largest contributor to global climate change, accounting for over 75% of global greenhouse gas emissions and nearly 90% of all carbon dioxide emissions. Investment in fossil fuels is increasingly excluded from portfolios due to the sector's significant impact on climate change and environmental degradation, including pollution and habitat destruction.
The shift towards sustainable energy alternatives has led fund managers to either exclude fossil fuel companies from their portfolios entirely, or partially exclude or limit their exposure to specific areas of the sector. Other managers choose to engage with the industry to encourage them to improve their practices towards more sustainable and less environmentally damaging operations.
FundsInsights
7 Jun 2024The Potential Impacts of Divestment from the...ESGCheck
The increasing call for divestment from fossil fuels is driven by environmental concerns. However, moving towards a greener economy requires careful consideration of the short-term consequences of abrupt divestment from the fossil fuel industry by Australia's Super Funds and other investors. This article explores the potential financial, economic, and social impacts of such a decision, focusing on labour markets, economic stability, and the ability to influence corporate behaviour through stewardship.
6 Jun 2024The superannuation industry's $150 billion fossil...Market Forces
Out of the tens of thousands of companies superannuation funds could invest in, Market Forces has identified a global list of 190 companies doing most of the climate wrecking through their coal, oil and gas expansion plans. Market Forces' analysis of the default or largest investment options of 30 of Australia's largest super funds reveals these options have collectively more than doubled their investments in Climate Wreckers Index companies over two years, with more than $39 billion invested in the companies most responsible for exacerbating climate change.
22 May 2024The Fossil Fuel Dilemma: Environmental Impact and...ESGCheck
The fossil fuel industry, encompassing oil, coal, and natural gas, has been the backbone of global energy production for over a century. Its role in powering industrialisation, transportation, and electricity generation is undeniable. However, the environmental and societal impacts of fossil fuels have become increasingly concerning, prompting debates on investment strategies within the sector. This article explores the environmental consequences of fossil fuel use, its societal implications, and the reasons behind both investment and divestment decisions.
22 May 2024Opportunities emerging from rising demand for AI...Alphinity Investment Management
The AI boom is likely to drive a surge in energy consumption after decades of sluggish demand. Powering energy-hungry data centres has become a significant bottleneck within the AI capex cycle. We take a closer look at the implications for global energy and gas markets, but also highlight various potential beneficiaries across different industries.
21 May 2024The Great ReversalsMerlon Capital Partners
We are witnessing the beginnings of a long-term economic transition where the nations of the world seek to reverse the centuries-long growth in burning carbon to fuel the global economy. At the same time, we are seeing the early stages of a reversal of the four-decades-long trend of globalisation.
10 Apr 2024ESG and RI: Beauty is in the eye of the beholderESGCheck
One of the most significant trends impacting managed funds and investment management has been the trend towards ESG - otherwise known as Environmental, Social & Governance, or more broadly, RI or Responsible Investment. According to some sources - particularly those who are strong advocates of the cause - 83% of investors consider ESG or RI to be a significant factor in their invest decision or choice of a managed fund. That may well be the case, but finding funds that meet an individual investor's requirements is anything but simple.
Fossil fuel exploration, mining and production
