Sustainable finance is rife with greenwash. Time for more disclosure

  • 📰 TheEconomist
  • ⏱ Reading Time:
  • 85 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 37%
  • Publisher: 92%

Malaysia News News

Malaysia Malaysia Latest News,Malaysia Malaysia Headlines

The green boom reflects soaring demand from investors. Over 40 green firms have seen their share prices triple since the start of 2019

. On average, each of them holds investments in 17 fossil-fuel producers. Six have invested in ExxonMobil, America’s biggest oil firm. Two own stakes in Saudi Aramco, the world’s biggest oil producer. One fund holds a Chinese coal-mining company.investing is hardly a champion of social virtue either. The funds we looked at invest in gambling, booze and tobacco.ESG

investing, which the White House saw as a left-wing conspiracy. By contrast, President Joe Biden’s administration sees it as a potentially useful weapon to fight climate change. The Securities and Exchange Commission, Wall Street’s regulator, worries thatWhat should governments do? One possibility is to follow the European Union’s approach. Its latest Green Deal includes lots of new rules about sustainable finance.

A better system would force companies to reveal their full carbon footprint, including emissions from the products they sell and the goods and services they buy. It would help if big polluters also revealed how they expect their footprint to change and the amount of capital expenditure that goes toward low-carbon investments. That way an investor could work out how much pollution their portfolio is responsible for today and how it might look tomorrow.

The results of such disclosure may come as a surprise. We estimate that listed firms that are not state-controlled account for only 14-32% of the world’s emissions—so green investing can be only part of the answer. About 5% of these firms account for over 80% of the total emissions. They are mostly oil producers, utilities, cement firms and mining companies. Better disclosure would also show that only a tiny number of firms are investing heavily in renewable energy or breakthrough technologies.

The combined effect would be to expose as bunk the idea that swathes of the corporate world and asset-management industry are planet-saving heroes. And it would help investors put their money into truly green firms, ensuring a better allocation of capital and a faster energy transition.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

جب تک کہ عمران خان یہ پختہ اور مخلص وعدہ نہیں کرتے ہیں کہ وہ اللہ کے سوا کبھی کسی کے سامنے سر نہیں جھکائے گا جیسا کہ وہ ماضی میں کہتے تھے ، ان کی مشکلات اور مشکلات آج بھی اسی طرح برقرار رہیں گی۔ پر مزید۔ - محمد قاسم کے خواب

Excellent news, makes sense.

Which companies are I wanna buy their stock

This is not good

Binance, in my opinion, does the same thing as Jordan Belfort (The Wolf of Wall Street movie (2013)), bought all the shares at a low price, then raised the price, the fools bought, now Binance is drop

WHAAAT? There's no money to be made in renewable energy!!

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 6. in MY

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Bethenny Frankel On Why The Best Time To Start A Business Is NowBethenny Frankel shares her best advice on what it takes for entrepreneurs to succeed post-pandemic Boss!
Source: Forbes - 🏆 394. / 53 Read more »