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Nuclear power (including uranium mining)
Nuclear power and uranium mining are contentious due to the long-term environmental risks, including radioactive waste disposal and potential for catastrophic accidents. Investors might steer clear of the nuclear sector or choose to engage with companies to promote safety and sustainability in operations.
Fund managers adopt a cautious approach towards investments related to nuclear power and uranium mining. Some funds entirely exclude companies involved in nuclear fission electricity generation, uranium mining, or nuclear fuel processing from its investment portfolio. Similarly, other funds enforce strict revenue thresholds, often not investing in companies that derive significant income from the nuclear sector, generally limiting this to 5%. Additionally, some funds permit investments in nuclear medicine due to its medical utility but exclude companies associated with nuclear weapons and uranium mining for energy production.
21 May 2024Small-Scale Nuclear Reactors: An OverviewESGCheck
Small-scale nuclear reactors, commonly known as Small Modular Reactors (SMRs), represent a notable innovation in nuclear energy technology. These reactors are designed to be more flexible, cost-effective, and safer compared to traditional large-scale nuclear reactors. Here is a detailed exploration of what SMRs are, how they differ from conventional reactors, and their potential environmental and societal impacts.
20 May 2024Nuclear Power: ESG Acceptable or Not?ESGCheck
Nuclear power is recognised for its low greenhouse gas emissions during operational phases, making it a vital component in efforts to mitigate climate change. According to the International Energy Agency (IEA) and the International Atomic Energy Agency (IAEA), nuclear power generates about 10% of global electricity with significantly lower CO2 emissions compared to fossil fuels, contributing to the levelling of global CO2 emissions at 33 gigatonnes in 2019.
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.