Pollutant Emissions, Investors Ask for More Transparency From the Fossil Sector

Polluting emissions, investors demand more transparency from the fossil sector

“To achieve the goals set by the Paris Climate Agreement, companies in the fossil fuel sector must be more transparent and take responsibility for their polluting emissions “. Thus the open letter sent to the Financial Times by 60 financial companies begins.

These are companies that together manage more than 10.4 trillion dollars , long-term investors of the oil & gas sector.

More costs for the sectors that emit polluting emissions

“We are strongly aware of the importance of a transition to a low polluting future ” – the letter reads – “for the sustainability of the global economy and the prosperity of our customers”.

It is also also a question of costs: the new regulations in many countries of the world are aimed at keeping the global temperature rise below 2 degrees and meeting the objectives set by the Paris Agreement . This means that in future there will always be greater costs for the sectors that emit polluting emissions and will therefore be subject to an increase in investment risks .

Reduce polluting emissions, a necessity

The CDP (formerly the Carbon Disclosure Project) estimates that the oil & gas sector is responsible for 50% of global pollutant emissions . And, they write in the open letter, “for 90% these emissions derive from the use of the products of companies in this sector”. Consequently, “reducing the polluting impact of our products would be, for these companies, the most effective strategy for moving to a world with low polluting emissions”.

The 60 big investors also ask governments to pursue a regulation that supports investments in low impact technologies .

“We will continue our vigilance and dialogue with companies in the fossil fuel sector, to better understand how the investments we choose on behalf of our customers are in line with a sustainable future . We investors are taking over our responsibility to support the Paris Agreement “- the open letter closes -” it is time for companies to do the same “.

The EU Parliament also calls for a fossil free future

A request for disinvestment from the fossil fuel sector also came from the European Parliament , which approved a resolution on sustainable finance .

The provision highlights fifty points, emphasizing the importance of a stable and ambitious regulatory and supervisory framework for mobilizing private capital towards sustainability .
And, among the various points, he also asks to put in action actions to “decarbonise” the most prestola finance . “Since by the middle of the century we have eliminated fossil fuels from our economy” – said Molly Scott Cato, the British MEP rapporteur of the resolution – “we must also eliminate the activities that depend on them from our financial system”.

Reducing the impact on the environment: we believe in it to the end

At Etica Sgr we care about the transition to a low carbon future . For this reason we join – already in 2015 – at the Montréal Carbon Pledge , an initiative promoted by the PRI aimed at institutional investors all over the world, which includes the commitment to measure, reduce and report the carbon footprint . of their equity investments.

From the last study carried out on the Ethical Equity Fund, it emerged that the companies in the portfolio are active in reducing their polluting emissions. In fact, 81% of companies have undertaken initiatives to reduce environmental impact through, for example, the development of low carbon products and production processes that are more energy efficient.