It’s a new dawn on Wall Street..The UN Agenda 2030 “great reset” is being fuelled by big money..“Big money is turning its back on companies that aren’t conforming to one simple idea…sustainability – and it is fueling one of the biggest transfers of capital the world has ever seen. In fact, within a year, 77 per cent of institutional investors will stop buying into companies that aren’t, in some way, sustainable,” said Oilprice.com.The transformation is being led by the world’s largest global investment management company – New York based Black Rock, Inc., with US$7.81 trillion in assets under management as of Q4 2020..BlackRock says its clients will double their “environmental, social and corporate governance” (ESG) investments in just five years..Its 2021 Global Outlook refers to a New Investment Order: “We have entered a new investment order. The Covid-19 pandemic has accelerated profound shifts in how economies and societies operate across four dimensions: sustainability, inequality, geopolitics and the joint macro policy revolution. We believe this calls for a fundamental rethink of investment portfolios – starting now..“The pandemic has added fuel to pre-existing structural trends such as an increased focus on sustainability, rising inequality, and the dominance of e-commerce at the expense of traditional retail. Strategic implication: We prefer sustainable assets amid a growing societal preference for sustainability.”.It appears the global green movement has finally been heard on Wall Street..Fund managers now say climate change is their top concern – and a leading-criterion when deciding where they put their money..“Sustainable assets already account for $17.1 trillion, but there could be as much as $120 trillion up for grabs. And that’s exactly why sustainable stocks are outperforming the market,” reports Oilprice.com.“They are the new go-to investment…this sector is a safe haven in that the road to sustainability is long. AND it’s not just Big Money’s downside protection against ESG-related risks, many are money-makers.”.Today’s institutional investor is looking for the value that only high-tech sustainability, good governance and social impact can deliver. .Price Waterhouse Cooper (PwC) advises investors “public awareness of ESG-related risks has catapulted climate change and sustainability to the top of the global agenda” and COVID has brought “the real-life impacts of overlooking ESG factors into the spotlight.”.BlackRock CEO Larry Fink refers to a “fundamental reshaping of finance”, saying: “Climate change has become a defining factor in companies’ long-term prospects.”.“The evidence on climate risk is compelling investors to reassess core assumptions about modern finance. Research from a wide range of organizations – including the UN’s Intergovernmental Panel on Climate Change, the BlackRock Investment Institute, and many others, including new studies from McKinsey on the socioeconomic implications of physical climate risk – is deepening our understanding of how climate risk will impact both our physical world and the global system that finances economic growth,” said Fink..The S&P Global “ESG Risk Atlas: Sector and Regional Rationales and Scores” rates oil and gas at high in terms of exposure to environmental and social risks..This will likely hurt future oil and gas sector investment..Ken Grafton is the Western Standards Ottawa Bureau Chief. He can be reached at kgrafton@westernstandardonline.com
It’s a new dawn on Wall Street..The UN Agenda 2030 “great reset” is being fuelled by big money..“Big money is turning its back on companies that aren’t conforming to one simple idea…sustainability – and it is fueling one of the biggest transfers of capital the world has ever seen. In fact, within a year, 77 per cent of institutional investors will stop buying into companies that aren’t, in some way, sustainable,” said Oilprice.com.The transformation is being led by the world’s largest global investment management company – New York based Black Rock, Inc., with US$7.81 trillion in assets under management as of Q4 2020..BlackRock says its clients will double their “environmental, social and corporate governance” (ESG) investments in just five years..Its 2021 Global Outlook refers to a New Investment Order: “We have entered a new investment order. The Covid-19 pandemic has accelerated profound shifts in how economies and societies operate across four dimensions: sustainability, inequality, geopolitics and the joint macro policy revolution. We believe this calls for a fundamental rethink of investment portfolios – starting now..“The pandemic has added fuel to pre-existing structural trends such as an increased focus on sustainability, rising inequality, and the dominance of e-commerce at the expense of traditional retail. Strategic implication: We prefer sustainable assets amid a growing societal preference for sustainability.”.It appears the global green movement has finally been heard on Wall Street..Fund managers now say climate change is their top concern – and a leading-criterion when deciding where they put their money..“Sustainable assets already account for $17.1 trillion, but there could be as much as $120 trillion up for grabs. And that’s exactly why sustainable stocks are outperforming the market,” reports Oilprice.com.“They are the new go-to investment…this sector is a safe haven in that the road to sustainability is long. AND it’s not just Big Money’s downside protection against ESG-related risks, many are money-makers.”.Today’s institutional investor is looking for the value that only high-tech sustainability, good governance and social impact can deliver. .Price Waterhouse Cooper (PwC) advises investors “public awareness of ESG-related risks has catapulted climate change and sustainability to the top of the global agenda” and COVID has brought “the real-life impacts of overlooking ESG factors into the spotlight.”.BlackRock CEO Larry Fink refers to a “fundamental reshaping of finance”, saying: “Climate change has become a defining factor in companies’ long-term prospects.”.“The evidence on climate risk is compelling investors to reassess core assumptions about modern finance. Research from a wide range of organizations – including the UN’s Intergovernmental Panel on Climate Change, the BlackRock Investment Institute, and many others, including new studies from McKinsey on the socioeconomic implications of physical climate risk – is deepening our understanding of how climate risk will impact both our physical world and the global system that finances economic growth,” said Fink..The S&P Global “ESG Risk Atlas: Sector and Regional Rationales and Scores” rates oil and gas at high in terms of exposure to environmental and social risks..This will likely hurt future oil and gas sector investment..Ken Grafton is the Western Standards Ottawa Bureau Chief. He can be reached at kgrafton@westernstandardonline.com
