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Meanwhile, Republicans, many from energy-producing states, have raised a growing chorus of challenges on ESG. This can be a problem for fund participants who do not share ESG goals, the Republicans wrote. Asset managers have argued that such memberships align with their fiduciary obligations, and some are giving clients more control over proxy votes. "Asset managers voting for the exclusion of one of their competitors has clear antitrust implications," the letter states. The resolutions were filed by activist shareholder group As You Sow, which the Republicans suggested had targeted Vanguard over its withdrawal.

LONDON, March 31 (Reuters) - A member of a United Nations-backed coalition of insurance firms and pension funds seeking to tackle climate change told Reuters it was considering quitting after disagreements about curbing investment in the oil and gas sector split the group. The row is the latest in a string of policy splits among major climate coalitions of financial firms. AkademikerPension wanted the position paper to state that NZAOA members should only invest in public equities or corporate bonds when the companies involved are no longer investing in exploration for new oil and gas. German insurer Munich Re (MUVGn.DE) said earlier on Friday it was withdrawing from another alliance of insurers focused on reducing carbon emissions to avoid antitrust risks. "I think it's going to be extremely difficult for a plaintiff, even a government enforcer, to prevail on an antitrust theory of harm," said Mitnick.

☆ Explainer: The business of water: no one-size-fits-all approach
▼ + stars: | 2023-03-22 | by ( Isla Binnie | ) www.reuters.com time to read: +5 min

PUBLIC-PRIVATE PARTNERSHIPSA group of experts established by the Dutch government is proposing "Just Water Partnerships" in which development finance institutions would invest alongside private firms to improve water systems in lower-income countries. One of those, the Calvert Global Water Fund, tracks the performance of an index of companies that "are offering products or services that are part of a solution to global water challenges," said portfolio manager Jade Huang. "There is no one-size-fits-all approach that can help to approach the many aspects of dealing with water challenges," Huang added. Lance Coogan, who developed that concept for water price indexing, describes it as "the volume-weighted average of the actual water transactions that are taking place". How can you have those things without having the water price?"

☆ UN warns 'vampiric overconsumption' is draining world's water
▼ + stars: | 2023-03-22 | by ( Isla Binnie | ) www.reuters.com time to read: +3 min

UNITED NATIONS, March 22 (Reuters) - The United Nations opened its first conference on water security in almost half a century on Wednesday with a plea to governments to better manage one of humanity's shared resources. A quarter of the world's population relies on unsafe drinking water while half lacks basic sanitation, the U.N. said. "We are draining humanity's lifeblood through vampiric overconsumption and unsustainable use, and evaporating it through global heating," said U.N. Secretary General Antonio Guterres. But Guterres said it must "result in a bold Water Action Agenda that gives our world's lifeblood the commitment it deserves". The United States quickly responded to Guterres' call.

Despite SVB's demise knocking the value of banks globally, particularly European lender Credit Suisse, U.N. climate envoy Mark Carney said he, too, did not expect a "material" impact on climate tech funding. "At a minimum, this will likely drive continued tightening of investments and a push to have their portfolio companies cut (cash) burn," it said in a note. Mona Dajani, partner at law firm Shearman and Sterling, said most of her clean energy clients either banked with SVB or faced some other impact from its troubles. SVB "cultivated a reputation as being very friendly to clean energy... they were willing to underwrite more risk," she said. "Not all the companies are going to make it and now that’s happening to climate companies."

Entities rated by MSCI ESG Research include Adani Green Energy, Adani Power, Adani Total Gas, Adani Transmission and Adani Enterprises, according to the statement. This week, MSCI ESG Research flagged all its covered Adani Group entities for the metric of accounting investigations, while some were flagged for the securities valuations metric, it said. "Across various Adani Group entities, MSCI ESG Research has identified issues relating to governance, board independence, related party transactions, and controlling shareholders," the company said. Since the short-seller report release, MSCI ESG Research has added "Bribery and Fraud" and "Governance Structures" controversy cases to all Adani Group companies in its coverage, it said. Sustainability ratings company Sustainalytics downgraded corporate governance-related scores for some Adani Group companies last month.

REUTERS/Nathan Frandino//File PhotoNEW YORK/HOUSTON, March 10 (Reuters) - Corporations and investors have been pouring money into renewable energy projects, seeing an opportunity to grasp the Holy Grail of socially conscious investing: do good while doing well. But sharply higher interest rates have further stressed a model strained by soaring prices for steel and silicon, vital for wind turbines and solar panels. Higher costs have buyers and sellers of renewable power projects recalculating potential returns, hampering fundraising and mergers and acquisitions (M&A). A decade of low interest rates meant borrowers could raise cheap debt to build projects and juice returns. Financial investors traditionally took stakes in operating renewables projects to avoid risks of construction delays and ensure stable returns.

NEW YORK , March 7 (Reuters) - Bank of America Corp's (BAC.N) Chief Executive Officer Brian Moynihan had a clear message for shareholders on Tuesday: "We are capitalists." The proclamation from the head of the second-largest U.S. lender might seem obvious, but comes at a time when Wall Street titans face more criticism for embracing environmental, social and governance (ESG) considerations. The word "capitalism" is mentioned 22 times in BofA's latest annual report spanning 222 pages, rising from 16 times a year earlier. Still, the CEO acknowledged there are concerns about whether companies share profits or pay people fairly and equitably. The lender outlined its ESG goals in the report, including a pledge to achieve net zero greenhouse gas emissions by 2050 and deploy $1.5 trillion in sustainable finance by 2030.

☆ Rivian plans to sell $1.3 bln in bonds to shore up capital, shares fall
▼ + stars: | 2023-03-07 | by ( ) www.reuters.com time to read: +2 min

SAN FRANCISCO, March 6 (Reuters) - Rivian Automotive (RIVN.O) plans to sell bonds worth $1.3 billion, it said on Monday, as weakening demand and lofty costs tighten a cash crunch around electrical vehicle makers. Initial investors will get an option to buy an additional $200 million of the bonds for settlement 13 days after the bonds are issued, Rivian said in a statement. The capital from this offering will help facilitate the launch of Rivian's smaller R2 vehicle family, a Rivian spokesperson told Reuters, adding that convertible debt was "optimal cost of capital versus selling equity at today's levels." It reported cash and cash equivalents of $11.57 billion at the end of December, down from $13.27 billion a quarter earlier. The interest rate, initial conversion rate and other terms of the bonds will be decided at the pricing of the offering.

☆ Anti-ESG crusader Ramaswamy launches U.S. presidential bid
▼ + stars: | 2023-02-22 | by ( Isla Binnie | ) www.reuters.com time to read: +2 min

A former biotechnology investor and executive, Ramaswamy will pursue the Republican nomination in what is shaping up to be a crowded field. A political outsider, Ramaswamy rose to prominence in 2021 as the author of "Woke Inc: Inside Corporate America's Social Justice Scam". But Ramaswamy's contrarian message made him popular in conservative political circles and a regular guest on cable TV shows. Ramaswamy co-founded Strive with former Anheuser-Busch Inbev SA executive Anson Frericks, who will continue to run the firm. Reporting by Isla Binnie in New York; Editing by Simon Cameron-MooreOur Standards: The Thomson Reuters Trust Principles.

NEW YORK, Feb 21 (Reuters) - Major U.S. pension fund CalPERS is seeking a meeting with rail operator Norfolk Southern (NSC.N) at which it plans to ask about the derailment of a train loaded with toxic chemicals earlier this month, a spokeswoman for the fund said on Tuesday. CalPERS, which stands for the California Public Employees' Retirement System, held $200.6 million worth of Norfolk Southern debt and equity as of the end of 2022, a CalPERS spokeswoman said. "We are in the process of requesting a meeting with Norfolk Southern," she said. Talks between the fund and companies are usually confidential, but CalPERS will update its membership "if anything pertinent comes from this discussion," the spokeswoman added. Norfolk Southern did not immediately respond to a request for comment.

☆ Campaigners urge bond investors to shun Adani Group on green concerns
▼ + stars: | 2023-01-30 | by ( Isla Binnie | ) www.reuters.com time to read: +2 min

NEW YORK, Jan 30 (Reuters) - An advocacy group focused on the impact of debt markets on climate change called on Monday for major bond investors to shun India's Adani Group, saying a critical report by a short-seller had undermined confidence in the company's governance. Billionaire chairman Gautam Adani, one of the world's richest people, dismissed these as baseless. Spokespeople for the Adani Group, BlackRock, Allianz and Pimco did not immediately respond to requests for comment. Green bonds, used to raise funds for specific projects that are seen to benefit the environment, are one of Adani's sources of financing. "The interconnected financial nature of the Adani Group makes it clear that buying debt from any subsidiary of Adani, is by extension supporting Adani's mining businesses," Haines said in the letter.

Steel producers are estimated to produce 7-9% of all harmful emissions, according to the World Steel Association. Boston Metal makes parts for cells in which electricity splits iron ore, creating liquid iron and no byproducts or emissions apart from oxygen. "What is the point of having an electric car running on a battery and carrying dirty steel?" ArcelorMittal's investment marks a shift in steel companies' willingness to invest in the technology since Boston Metal first went out looking for funding in 2018, Carneiro said. Now all the steelmaking companies are very interested in following what we are doing because they need a solution."

LONDON, Jan 20 (Reuters) - Spain's markets and competition regulator is reviewing whether gas distributor Madrilena Red de Gas (MRG) has complied with legislation designed to protect the financial strength of energy distributors, according to two sources familiar with the situation. The amendment grew out of worries about the excessive indebtedness of the gas transportation and distribution networks. The CNMC has not to date published a notice of regulatory action concerning MRG. The filings also show that MRG's ultimate parent Elisandra Spain IV - Elisandra Spain V's sole owner - paid dividends totalling more than 104 million euros to its shareholders. At the end of 2021, MRG carried 925.5 million euros of net adjusted financial debt on its balance sheet, 6.55 times its earnings before interest, taxes, depreciation and amortisation (EBITDA), per its latest annual accounts.

Focusing on environmental, social or governance-related issues, ESG in industry parlance, could hit returns to investors, critics said. Other states followed, with Texas accusing BlackRock and banks including Bank of America (BAC.N) of 'boycotting' fossil fuel companies in the transition to a greener economy. WHY IT MATTERSThe criticism comes at a critical time for global climate efforts. A landmark U.N. report earlier this year said time was running out to cap global warming at 1.5 degrees Celsius by 2050. With a number of investigations into finance-linked ESG activities still in train across various states, the prospect of a let-up in pressure in 2023 is slim.

☆ Analysis: U.N. nature deal can help wildlife as long as countries deliver
▼ + stars: | 2022-12-22 | by ( Gloria Dickie | ) www.reuters.com time to read: +5 min

Conservationists praised the deal's ambition, saying it amounted to a Paris Agreement for nature in setting out 23 specific targets against which countries can measure their progress. "This is equivalent to the 1.5 degrees Celsius global goal for climate," said Marco Lambertini, director-general of World Wildlife Fund International. "Otherwise, there is a big risk that the cheapest areas are protected rather than those that matter most for biodiversity." During the talks, delegates discussed whether protected areas should be entirely off-limits to human settlement and development, or if some resource extraction should be allowed if managed sustainably. Canada, one of the world's largest nations, is expanding protected land and marine areas in the Arctic.

Another was the requirement for companies to assess and disclose their impact and reliance on nature, despite the word "mandatory" being dropped from the final deal. While protecting nature comes at a cost, those companies that step up will attract more investors. "The big losers across the board will be 'business as usual'," said Eurasia Group senior analyst Franck Gbaguidi. A body representing some of the world's largest mining companies, including Glencore (GLEN.L) and Newcrest (NCM.AX), said disclosure would lead to a level playing field between sectors. The bill was ultimately calculated at $20 billion per year by 2025 and $30 billion per year by 2030.

Here are some of the key areas agreed on after two weeks of negotiations hosted in Montreal, Canada. CONSERVATION, PROTECTION AND RESTORATIONDelegates committed to protecting 30% of land and 30% of coastal and marine areas by 2030, fulfilling the deal's highest-profile goal, known as 30-by-30. Wealthier countries should contribute at least $20 billion of this every year by 2025, and at least $30 billion a year by 2030. BIG COMPANIES REPORT IMPACTS ON BIODIVERSITYCompanies should analyse and report how their operations affect and are affected by biodiversity issues. This reporting is intended to progressively promote biodiversity, reduce the risks posed to business by the natural world, and encourage sustainable production.

☆ Congo says unable to support U.N. nature deal in current form
▼ + stars: | 2022-12-19 | by ( ) www.reuters.com time to read: 1 min

MONTREAL, Dec 19 (Reuters) - The Democratic Republic of Congo is unable to support the adoption of a proposed global deal to protect nature after two weeks of United Nations-backed negotiations, a representative from the country told a summit on Monday. Talks are likely to continue Monday morning. The summit is due to conclude on Dec. 19. Reporting by Gloria Dickie and Isla BinnieOur Standards: The Thomson Reuters Trust Principles.

MONTREAL, Dec 19 (Reuters) - A United Nations summit approved on Monday a landmark global deal to protect nature and direct billions of dollars toward conservation but objections from key African nations, home to large tracts of tropical rainforest, marred the final passage. The Kunming-Montreal Global Biodiversity Framework, reflecting the joint leadership of China and Canada, is the culmination of four years of work toward creating an agreement to guide global conservation efforts through 2030. "The parties which are developed nations should provide resources to parties which are developing," the Congolese representative said through a translator. The deal, which contains 23 targets in total, replaces the failed 2010 Aichi Biodiversity Targets that were intended to guide conservation through 2020. Investment firms focused on a target in the deal recommending that companies analyse and report how their operations affect and are affected by biodiversity issues.

This could change after negotiators at the U.N. nature summit in Montreal secured long-awaited formal support on Monday for a Global Biodiversity Framework to protect nature. Just 907.6 million euros are invested in Morningstar’s top 10 equity funds with biodiversity in their name. "We know the global economy and every company in it is negatively impacting biodiversity," said Tom Atkinson, portfolio manager at AXA Investment Managers, which has a 117 million euro Article 9 biodiversity impact fund. "At the moment we can only assess the negative impact (on biodiversity) of the companies in our portfolio, this is why more biodiversity funds don't exist and why regulation is arguably dragging." Three of the six largest biodiversity-named funds assessed by Reuters are overweight industrials versus the MSCI ACWI Index (USD).

The Kunming-Montreal Global Biodiversity Framework, reflecting the joint leadership of China and Canada, is the culmination of four years of work toward creating an agreement to guide global conservation efforts through 2030. A Congolese representative argued that developed nations should provide more resources to nature conservation efforts in developing countries. [1/6] The leadership of the U.N.-backed COP15 biodiversity conference applaud after passing the The Kunming-Montreal Global Biodiversity Framework in Montreal, Quebec, Canada December 19, 2022. Developed countries will provide $25 billion in annual funding starting in 2025 and $30 billion per year by 2030. The agreement, which contains 23 targets in total, replaces the 2010 Aichi Biodiversity Targets that were intended to guide conservation through 2020.

Policymakers hope an ambitious deal can spur nature conservation in the same way that an international pact in Paris in 2015 helped mobilize efforts to limit planet-warming carbon emissions. However, the text mentions only that $20 billion to $30 billion per year comes from developed countries by 2030. "Probably we will have to reach an agreement between $30 billion and $100 billion," Colombia's Muhamad told reporters. The draft deal does not mention setting up a separate facility. Lastly, risks from pesticides and highly hazardous chemicals would be reduced by at least half, but the text does not address slashing their overall use.

The presidency of the Montreal summit is held by China, which is responsible for releasing the draft text, based on the last two weeks of negotiations, as the best compromise for parties to discuss going forward. However, the 30-by-30 target does not contain a global goal and makes limited mention of the ocean, which could leave international waters unprotected. Financial mobilization has remained another key sticking point at the talks, and the draft puts forward allocating $200 billion per year for conservation initiatives - a target seen as critical for the successful implementation of any deal. The draft does not mention setting up a new facility. Lastly, the text does not address slashing the use of pesticides but does say that the risks from pesticides and highly hazardous chemicals should be reduced by at least half.

☆ Investor group launches campaign to help companies protect nature
▼ + stars: | 2022-12-11 | by ( Expert Analysis | Reuters Professional | Calls Grow For Companies To Disclose Impacts On Nature In Bid To Plug Finance Gap | ) www.reuters.com time to read: +2 min

REUTERS/Luis EcheverriaMONTREAL, Dec 11 (Reuters) - Here's the plan: Select 100 companies whose business burdens nature. Such is the vision of a campaign called "Nature Action 100" launched on Sunday by 11 investment firms hoping to encourage companies to help preserve ecosystems that support more than half the world's economic output. "The aim of Nature Action 100 is to engage those companies that have the highest impact on nature, not only to protect the natural environment but also to mitigate the risks these companies face from mounting pressure to effectively address biodiversity issues," Wearmouth said in a statement. The list of 100 companies will be published next year. Nature Action 100 would seek to select 100 companies for investors to focus on in suggesting how the private sector can navigate any new rules and monitoring their progress, the group said.

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