BlackRock Support for Climate, Social Proposals Hits New Low (FundFire)

The firm’s backing for such shareholder proposals plummeted from a high of 47% in 2021 to 4% over the twelve months ending in June amid a political backlash.

BlackRock has drastically cut back its support for proposals put forth by shareholders on environmental and social issues, the Financial Times reports.

The world’s largest asset manager backed just 4%, or 20 of the 493 environmental proposals put forward by shareholders in the twelve months ending in June. That compares to the firm’s peak support of 47% of ESG proposals in 2021, the FT reported, citing an annual stewardship report BlackRock released Wednesday.

https://www.fundfire.com/c/4602324/609264/blackrock_support_climate_social_proposals_hits?referrer_module=emailMorningNews&module_order=1&code=WTIxbGNtdGxja0J5ZDJKaGFYSmtMbU52YlN3Z05UYzNPREU0TXl3Z01UWTFNamMzTmprMk53PT0

Microsoft invests in AI in Wisconsin and adds supplier climate requirement

Microsoft announces $3.3 billion investment in Wisconsin to spur artificial intelligence innovation and economic growth

https://news.microsoft.com/2024/05/08/microsoft-announces-3-3-billion-investment-in-wisconsin-to-spur-artificial-intelligence-innovation-and-economic-growth

Microsoft announced a broad investment package designed to strengthen the role of Southeast Wisconsin as a hub for AI-powered economic activity, innovation, and job creation. These investments include $3.3B in cloud computing and AI infrastructure, the creation of the country’s first manufacturing-focused AI co-innovation lab, and an AI skilling initiative to equip more than 100,000 of the state’s residents with essential AI skills.

“Wisconsin has a rich and storied legacy of innovation and ingenuity in manufacturing,” said Brad Smith, Vice Chair and President of Microsoft. “We will use the power of AI to help advance the next generation of manufacturing companies, skills and jobs in Wisconsin and across the country. This is what a big company can do to build a strong foundation for every medium, small and start-up company and non-profit everywhere.”

Tech giant reports 30% rise in emissions and says biggest challenge in meeting its own climate goals is reducing carbon footprint of supply chain

https://www.wsj.com/articles/microsoft-imposes-new-climate-requirement-on-suppliers-in-effort-to-lower-its-emissions-32169953?mod=djemSustainableBusinessPro

Microsoft will ask its main suppliers to use 100% renewable energy by the end of the decade, as it reported a 30% rise in emissions and acknowledged that its biggest challenge in meeting its climate goals comes from the construction of new AI infrastructure and tackling emissions from its supply chain.

Chief Sustainability Officer Melanie Nakagawa said the company will require “select scale, high-volume suppliers to use 100% carbon-free electricity by 2030” for goods and services delivered to Microsoft. The tech heavyweight said the requirements will be rolled out at the start of the 2025 fiscal year as part of an overall update to the company’s Supplier Code of Conduct.

Dan Romito asks the tough questions on ESG regulation and the future of the energy transition.

Marquette S-Lab Co-Director and Head of ESG Consulting at Pickering Energy Partners recently presented at the Marquette graduate level Sustainable Finance class. Romito walked the class through the most pressing questions on ESG regulation and its impact on the energy transition.

https://marquette.hosted.panopto.com/Panopto/Pages/Viewer.aspx?id=cc058228-463e-45ab-ba23-b15c0108bbab

US SEC to vote on long-awaited climate disclosure rule, notice says (Reuter’s)

Wall Street’s top regulator will vote on March 6 on whether to adopt rules requiring U.S.-listed companies to report climate-related risks, the agency said in a notice on Wednesday, in a potentially major overhaul of U.S. disclosure rules.

The Securities and Exchange Commission rules aim to standardize climate-related company disclosures about greenhouse gas emissions, risks and how much money they are spending on the transition to a low-carbon economy. The agency says that such information is important for investors.

https://www.reuters.com/business/finance/us-sec-vote-long-awaited-climate-disclosure-rule-notice-says-2024-02-28/

Climate Risk and the Future of US Commercial Real Estate (Enterprising Investor – CFA)

https://blogs.cfainstitute.org/investor/2024/01/17/climate-risk-and-the-future-of-us-commercial-real-estate/?s_cid=eml_Enterprising

The imperatives of climate change demand enhanced risk management in the commercial real estate (CRE) loan market: Investors and lenders must refine their strategies and conduct meticulous property-level risk assessments as part of their credit analysis. Community and regional banks are particularly susceptible to climate-related financial risk due to their CRE loan balance sheet exposure and must navigate unpriced climate risks to ensure balanced and resilient loan portfolios. To maintain portfolio health and overall stability, these institutions must exercise ongoing vigilance in their risk monitoring.

Exxon Sues Two ESG Investors (WSJ)

https://www.wsj.com/business/energy-oil/exxon-sues-two-esg-investors-2057e696?mod=Searchresults_pos1&page=1

Exxon Mobil XOM -0.16%decrease; red down pointing triangle is suing two sustainable investment firms in a bid to block them from putting forward a shareholder proposal that would commit the oil company to further curb its greenhouse-gas emissions and target its customers’ emissions.

In a federal lawsuit filed in Texas on Sunday, the Houston-based oil giant said investment firms Arjuna Capital and Follow This became Exxon shareholders only to put forward proposals that would “diminish the company’s existing business.” 

U.S. ESG Funds Notch First Year of Outflows (P&I)

https://www.pionline.com/esg/us-esg-funds-notch-first-year-outflows-2023?utm_campaign=smartbrief

U.S. sustainable funds had their worst calendar year in 2023, according to Morningstar, which has been tracking them for more than a decade.

Investors pulled $13 billion from U.S. sustainable funds in 2023, including $5 billion in the fourth quarter alone, due to a combination of lagging performance, politics and one iShares fund’s bad year.

Marquette hosts fourth annual Sustainability 2.0 Conference with record attendance

https://www.linkedin.com/feed/update/urn:li:activity:7123047495059865600/

Marquette was delighted to host executives and corporate leaders from companies and investment firms from across the country on October 24 at its annual Sustainability 2.0 Conference. 

The event garnered its largest attendance ever. 

Experts from around the world came together to discuss the challenges and opportunities facing organizations for a sustainable economy, now and in the future. 

Marquette College of Business Launches Sustainability Lab

The Marquette University Sustainability Lab is a cross-disciplinary project that aims to research and disseminate knowledge, foster and develop managers around effective sustainability and stewardship practices increasingly demanded across industries globally. Our lab aligns with the university’s commitment to the Laudato Si’ papal encyclical and furthers our Catholic, Jesuit mission to care for our common home. Through instructional opportunities that span business, the STEM fields, the humanities and more, the Sustainability Lab provides students with the knowledge they need to Be the Difference.

Housed in finance and the college of business, the S-Lab is interdisciplinary across the university including the Office of Economic Partnerships, supply chain management, communications, engineering, the natural sciences, the Women’s Leadership Institute, the law school and the Center for Peacemaking.

Its purpose: to research, educate and bring together this generation of sustainability leaders.

Marquette has long been recognized as a leader in sustainability. The university hosts the “Sustainability 2.0” Conference every fall, bringing together business leaders and executives from investment firms, public and private companies and NGOs for the largest regional conference on the issue. Our ESG (environmental, social and governance) courses are, likewise, unique among Midwest universities, designed with the future of corporate behavior in mind. Finally, the university itself is a recipient of the Princeton Review’s “Green College” designation and is recognized as one of the country’s most sustainable campuses.

Co-director, Dr. Christopher K. Merker, had this to say on the Lab and the critical importance of sustainability on present and future business performance: “Our goal is to help people understand and adapt to the world that’s changed around them. Those who undertake this successfully will be prepared to handle the strategic issues around sustainability, whether as an investor or as a business manager.”

What does ChatGPT have to say about climate change and sustainable finance? (Cary Krosinsky)

https://www.linkedin.com/posts/carykrosinsky_introducing-chatgpt-activity-7053366368624099329-UfLG/

Maybe we should let ChatGPT run everything

I asked “Do we need to solve climate change?” 

Answer: “Yes, it is critical that we address climate change. Climate change is a global crisis that poses significant threats to our planet and our way of life. It is caused by human activities such as burning fossil fuels and deforestation, and it leads to a wide range of harmful impacts, including rising temperatures, sea level rise, extreme weather events, and loss of biodiversity. If we do not act to address climate change, the consequences will be severe and long-lasting, affecting not only our generation but also future generations. Therefore, it is essential that we take action to reduce greenhouse gas emissions and transition to a low-carbon economy through policies, innovations, and individual actions. By working together, we can mitigate the effects of climate change and ensure a sustainable future for ourselves and future generations”

Followup question: “Can sustainable finance help solve climate change and if so how?”

Answer: “Yes, sustainable finance can play a significant role in addressing climate change. Sustainable finance refers to financial activities that support sustainable development and the transition to a low-carbon economy. By directing capital towards sustainable investments, sustainable finance can help to reduce greenhouse gas emissions and mitigate the effects of climate change. There are several ways in which sustainable finance can contribute to addressing climate change: Encouraging investments in renewable energy: Sustainable finance can help to direct more capital towards renewable energy such as solar and wind power, which can replace fossil fuel and reduce greenhouse gas emissions. Supporting energy efficiency: Sustainable finance can also help to fund energy efficiency projects, such as building retrofits and energy-efficient appliances, which can reduce energy consumption and greenhouse gas emissions. Promoting sustainable agriculture and forestry: Sustainable finance can support investments in sustainable agriculture/forestry, which can help to reduce deforestation, conserve biodiversity, and promote sustainable land use practices. Encouraging companies to reduce emissions: Sustainable finance can encourage companies to reduce their greenhouse gas emissions by linking financing to environmental, social, and governance (ESG) criteria. Facilitating the transition to a low-carbon economy: Sustainable finance can help to finance the transition to a low-carbon economy by supporting research and development of new technologies, such as carbon capture and storage and electric vehicles. Overall, sustainable finance can play a crucial role in addressing climate change by directing capital towards sustainable investments and promoting the transition to a low-carbon economy”

Maybe ask it questions you have for yourself and your family

https://lnkd.in/d7rcCXkz