Wall Street’s Biggest Names Are Backing Off Their Climate Commitments

Posted: December 10, 2022 by oldbrew in Accountability, COP26, Emissions, Energy, Legal, net zero
Tags: ,

Crazy world of climate finance [image credit: renewableenergyfocus.com]

Finance giants don’t like hefty fines for exaggerating their supposed climate virtues, or law suits for not acting in the best interests of their clients. Solution: leave their net-zero climate club.
– – –
Vanguard, the world’s second-largest asset manager, announced that it is resigning from a global net-zero initiative.
. . .
Shortly before COP26, last year’s United Nations climate conference in Glasgow, financial institutions were rushing to announce their climate commitments, says Grist (via Gizmodo).

The conference’s leadership and Mark Carney, a special envoy appointed by the United Nations to push private finance to invest in climate solutions, announced the creation of the Glasgow Financial Alliance for Net-Zero, or GFANZ.

The initiative’s goal was to increase the number of financial institutions committed to net-zero principles — essentially a promise that the work done by these institutions (investing, lending money, managing major assets like pension funds) would not cause an overall increase in the world’s carbon emissions.

During the conference, Carney announced that the coalition had grown to 450 firms responsible for $130 trillion in assets, a pot of wealth equivalent to more than five times the gross domestic product of the United States.

“You need things like GFANZ that are relentlessly, ruthlessly, absolutely focused on that transition to net-zero,” he told Bloomberg at the time.

But just a year later, many Wall Street firms are backtracking.
. . .
The discussion is complicated by the fact that many fossil fuel investments managed by Vanguard and other asset management firms are held in index funds that track the performance of the overall stock market — the kind that many American workers use to save for retirement, for example.

These index funds invest in a broad range of companies regardless of those companies’ carbon emissions, and GFANZ didn’t change that — in part because changing the makeup of a fund would require the approval of investors and could result in legal challenges.

Full article here.

  1. Phoenix44 says:

    They are finding that actually doing is costly. They thought it would just be fine words and that they could still just get on with making as much money as possible.

  2. Jamie Spry says:

    Reblogged this on Climatism and commented:
    Go woke, go broke.
    Corporations, slowly beginning to realise that slavish adherence to ClimateChange™️ ideology will cripple their own interests, too.
    It’s the irreparable damage being done to the poor and middle class sectors that is of actual concern, IMO.
    How long the MainstreamMedia™️ continues their “climate crisis” fantasy/narrative is where the rubber meets the road. It’s in their hands, unfortunately.

  3. oldbrew says:

    More cracks in the climate finance wall?

    Germany considers €1 billion in support for 10 fossil fuel projects overseas
    Published on 09/12/2022

    German support for any of the projects would breach a pledge made last year to stop funding coal, oil and gas projects overseas from 1 January


  4. […] Wall Street’s Biggest Names Are Backing Off Their Climate Commitments — Tallbloke’s Talksh… […]

  5. JB says:

    Wall Street moguls in their high towers of mega-finance seem to think they are immune to consequences. Gee, where could they have acquired that attitude?

  6. Eric says:

    Reblogged this on Calculus of Decay .

  7. Graeme No.3 says:

    Reminds me of those old videos of cars being crash tested. The test dummy is strapped in without resistance until the test car crashes.
    Our political dummies were oblivious of the fatal consequences until reality intruded, and are now scrambling to avoid their own smash. Their next problem will be how to explain the change of direction to the people they’ve deluded for years.

  8. oldbrew says:

    They were ‘climate commitments’ in name only anyway.

  9. Ned Nikolov, Ph.D. says:

    Since investment management requires practical intelligence instead of irrational ideology, I wonder, if some big financial guys will figure out that the entire Net-Zero climate agenda is based on a science delusion “supported” by fabricated data. In other words that it is a political scam of gigantic proportions…

  10. oldbrew says:

    They’re all at it…

    European banks continue fossil fuel funding despite climate pledges, report finds
    By E&T editorial staff

    Published Monday, December 12, 2022


  11. catweazle666 says:

    Get Woke, Go Broke, as a wise man once said!

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