ESGByte: Issue 8

March 8, 2021

COMPANIES IN NEWS >> #Aviva #FedEx #Citigroup #Chevron #CapitalGroup #Toyota


In the eighth issue of ESGByte, we see increasing commitments to net zero emissions, more power to diversity in the workplace, government agencies in the US, Europe and Canada taking steps to boost ESG related issues and fund raising for ESG projects gaining ground.  


Aviva, FedEx and Citi target to achieve net zero emissions

Aviva, a British insurance company has announced that it plans to achieve net zero carbon emissions from its own operations and supply chains by 2040 and from its investments by 2040.

American delivery services multinational, FedEx aims to reach net zero carbon emissions from its operations by 2040 using a mix of measures including vehicle electrification, using sustainable fuels and greener facilities.

Jane Fraser, the newly appointed CEO of Citigroup announced that the firm will achieve net zero Green House Gas (GHG) emissions from its financing activities by 2050.

Green Asset Ratio disclosures may soon become a requirement for European banks

The European Banking Authority has proposed that banks disclose their green asset ratios, which will show if the firm is making the transition from financing fossil fuels towards renewable energy. Banks will need to disclose the proportion of their loans and equity holdings that are green or environment friendly.

China published its five-year plan, including its plans on climate

Some key takeaways from China’s five-year plan on the climate front include planned reduction of emission intensity (CO2 produced per unit of GDP) by 18 per cent and share of non-fossil fuel energy reaching 20 percent of the country’s energy mix. GHG emissions are slated to peak by 2030 and China is expected to reach net zero emissions by 2060, as before. Nuclear power capacity target has increased to 70 gigawatts by 2025 from 52 gigawatts earlier.   

US SEC creates a task-force on ESG issues

The Securities and Exchange Commission of the United States of America has created a 22-member enforcement task-force on ESG issues. The goal of the task-force will be to identify gaps and misstatements in ESG related disclosures. It will also look at disclosure and compliance issues related to ESG strategies of investment funds and advisors.  

Chevron’s venture arm launches Future Energy Fund II

Chevron’s venture arm has launched a second fund, Future Energy Fund II. The fund aims to invest $300 million in low carbon tech opportunities such as carbon capture, energy storage and other clean technologies

Canada takes steps towards creating a carbon credits trading marketplace

Canada’s federal government is working towards creating a domestic marketplace for trading carbon credits. It released draft regulations which will enable projects that reduce greenhouse gas emissions to earn credits that can be traded in a marketplace. GHG producing industries can purchase these credits to offset their excess emissions. The price of the carbon credit will be driven by demand-supply, subject to a ceiling.

Capital Group sees diversity as an asset

Investment firm, Capital Group has asked more than 1,500 companies to disclose enhanced data on their workforce diversity. The firm manages more than $2.1 trillion in assets. Diversity in the workforce improves overall performance of companies, including financial performance.

Toyota plans to raise $4.7 billion from its “Woven Planet Bonds”

Japanese automaker, Toyota Motor Corp plans to issue sustainability bonds amounting to approximately $4.7 billion. The proceeds will be used to fund environment related projects and a 175 acre hi-tech metropolis powered by smart technology such as autonomous vehicles, smart homes etc.

Best of the rest

Mitsui to invest in a carbon capture and storage project in UK; UK awarded a grant of 2.1 million pounds to Malawi for the addition of clean power; India to conduct auctions for green hydrogen.