Barclays, Swiss Re, Energy Efficiency, BHP, and 2023
This is the last Insights ESG Weekly Update of the year. The Insights ESG team wishes you and your family good health and happy holidays!
Here are 5 ESG insights you might have missed this week:
1. Barclays Coal Plan Exposes Reach of Biden’s Inflation Reduction Act-
The UK bank is acting to phase out financing to the world’s dirtiest companies earlier than previously stated.
Barclays Plc, one of Europe’s biggest coal financiers, said its analysis of the IRA has led it to commit to wind down its funding for coal in the US five years earlier than planned. Chief Executive Officer C.S. Venkatakrishnan told shareholders recently that the bank now expects to phase out its financing of thermal coal power in the US by 2030.
Social values give investors a non-pecuniary reason for allocating money and sticking with their choice, a rare advantage for funds in an industry where a competitive edge normally means lower fees.
2. Through ‘Ownership Trusts,’ Investors Can Help Employees Become Owners and Owners Retire-
Employee-focused purpose trusts, or ownership trusts, could help address wealth gaps by cutting employees in on the wealth they helped create.
Common Trust is seeking to help meet the demand driven by a “silver tsunami” of owners over the age of 55 in search of a succession plan. As many as three in five U.S. businesses will seek a sale in the coming decade. Private buyers, such as private equity firms, are expected to meet only a fraction of that demand.
Employee ownership trusts are inexpensive to execute, flexible in design, and free of fiduciary issues that sometimes arise with employee stock options plans, another popular employee ownership tool. That makes them useful to companies with as little as 10 employees.
3. Swiss Re's Natural Catastrophes Insured Loses-
Natural catastrophes caused an estimated USD 115 billion of insured losses in 2022 to date, coming in well above the 10-year average of USD 81 billion.
Hurricane Ian was the single largest loss-causing event of the year to date, with an estimated insured loss of USD 50–65 billion.
Secondary perils such as floods and hail storms caused over USD 50 billion insured losses, yet again affirming their significant contribution to the global total.
4. IEA's Energy Efficiency 2022-
IEA’s primary annual analysis on global developments in energy efficiency markets and policy.
This year record-high consumer energy bills and securing reliable access to supply are urgent political and economic imperatives for almost all governments. In response to the energy crisis countries are prioritising energy efficiency action due to its ability to simultaneously meet affordability, supply security and climate goals.
While efficiency investment has recently been increasing to reach new record levels, the pace of global energy intensity improvements had noticeably slowed in the second half of the last decade and virtually stalled during the first two years of Covid-19. With efforts to better manage energy consumption as a result of the crisis increasing the rate of improvement once more, the question as to whether 2022 will see a sustained efficiency turning point, and what more can be done, are key themes of this year’s report.
Link to Source: https://www.insightsesg.com/post/iea-s-energy-efficiency-2022
5. How the World’s Biggest Miner Hopes to Profit from the Energy Transition-
A conversation with BHP chief Mike Henry.
“If the world said tomorrow there is no capital available for mining, decarbonization is impossible. It simply can’t happen...There is a growing recognition of the criticality of mining to the world’s decarbonization effort.”
At BHP, copper, nickel and potash are being emphasised because they will ride the world’s emerging megatrends, the group’s chief executive Mike Henry told us. Global population growth is driving demand for food, while the accelerating energy transition is creating an increasing need for metals such as copper and nickel.
One more thing: We wish you all a wonderful holiday season. Thanks again for your support this year, see you in 2023!
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