Asset owners eye greener companies to help cut portfolio emissions

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Grandpere’s love builds a Viking ship in West Pubnico | SaltWireLONDON - A group of the world's biggest pension funds and insurers have cut the emissions from their investment portfolios by reducing exposure to more polluting companies in favour of their greener peers, the chair of the industry alliance said.

How they should get there is debated, with many investors arguing that divesting out of dirtier companies - rather than pressuring them to shift tack - is simply transferring the problem to someone else. For institutions which set targets in 2019, the drop in emissions was 12% between 2019 and 2022, it said in its latest progress report.

But rather than simply dumping high-emitting sectors, many had switched to 'best in class' companies, he said, for example an oil and gas firm expanding renewable energy projects faster.

 

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