Only 1.4% of cars made are electric

 

 

The world’s largest investment funds — controlling $37-trillion in assets — are failing to bring their portfolios in line with the Paris climate goals, new analysis showed this week.

The funds control portfolios containing a fifth of the total value of world capital markets, yet their investments in sectors such as cars and coal puts them “significantly at odds” with the Paris aim of limiting global warming to well below 2°C, the Britain-based think tank InfluenceMap said.

Recent years have seen a global movement calling on shareholders to stop their institutions investing in fossil fuel use and exploration. But the industry pushback has been hard, with pension and sovereign wealth funds seeking to draw down their fossil investments challenged by shareholders in companies belonging to their portfolios.

“If the finance sector is making broad statements about being in line with the Paris agreements, that would suggest their portfolios should aim for that alignment,” said InfluenceMap’s executive director Dylan Tanner. “It’s clear that they do not.”

This was clearest in the automotive sector, where institutional reluctance to green production lines and sophisticated lobbying techniques are holding back progress, the report said.

In 2018, car manufacturers produced 96-million vehicles worldwide, but only 1.4% of them were electric vehicles (EVs).

“The sector is not investing in EVs at anywhere near enough pace, and the fleet volumes are growing so much that the internal combustion engine will overwhelm any benefits from EVs,” Tanner said.

Last year the Intergovernmental Panel on Climate Change (IPCC), in its assessment on the difference between 1.5°C and 2°C of warming, laid out a timeline for phasing out coal by 2030.

The funds analysed by InfluenceMap manage at least 30% more coal production than would be consistent with the Paris goals.

“It should also be noted that coal industry interests continue to lobby aggressively to delay policy which may realise the IPCC’s 2030 phaseout timeline,” it said.

The protect value, the analysis recommended that shareholders pressure corporations to bring their business plans in line with Paris climate goals, largely through investment in greener technology.

“The assess management industry is only starting to be aligned with the Paris Agreement,” said Christiana Figueres, a former UN climate change secretary and founding partner of the Global Optimism consultancy.

“In the face of the climate emergency, it is critical for investors to show companies the path to follow.” — AFP

Advertisting

Workers’ R60m ‘lost’ in banks scam

An asset manager, VBS Mutual Bank and a Namibian bank have put the retirement funds of 26 000 municipal workers in South Africa at risk

‘Judge President Hlophe tried to influence allocation of judges to...

Deputy Judge President Patricia Goliath accuses Hlophe of attempting to influence her to allocate the case to judges he perceived as ‘favourably disposed’ to former president Jacob Zuma

SAA grounds flights due to low demand

SAA is working to accommodate customers on its sister airlines after it cancelled flights due to low demand

Lekwa municipality won’t answer questions about why children died in...

Three children are dead. More than a dozen homes have been gutted by fires in the past six months. And, as...
Advertising

Press Releases

MTN unveils TikTok bundles

Customised MTN TikTok data bundles are available to all prepaid customers on *136*2#.

Marketers need to reinvent themselves

Marketing is an exciting discipline, offering the perfect fit for individuals who are equally interested in business, human dynamics and strategic thinking. But the...

Upskill yourself to land your dream job in 2020

If you received admission to an IIE Higher Certificate qualification, once you have graduated, you can articulate to an IIE Diploma and then IIE Bachelor's degree at IIE Rosebank College.

South Africans unsure of what to expect in 2020

Almost half (49%) of South Africans, 15 years and older, agree or strongly agree that they view 2020 with optimism.

KZN teacher educators jet off to Columbia University

A group of academics were selected as participants of the programme focused on PhD completion, mobility, supervision capacity development and the generation of high-impact research.

New-style star accretion bursts dazzle astronomers

Associate Professor James O Chibueze and Dr SP van den Heever are part of an international team of astronomers studying the G358-MM1 high-mass protostar.

2020 risk outlook: Use GRC to build resilience

GRC activities can be used profitably to develop an integrated risk picture and response, says ContinuitySA.

MTN voted best mobile network

An independent report found MTN to be the best mobile network in SA in the fourth quarter of 2019.