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Race to Net Zero: Carbon Neutral Goals by Country

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The time to talk about net zero goals is running out, and the time to put them into action is well underway.

At the U.S. Climate Summit in April 2021, U.S. President Biden pressured countries to either speed up carbon neutral pledges, or commit to them in the first place.

It’s a follow-up to the Paris Agreement, which keeps signatories committed to reaching carbon neutrality in emissions in the second half of the 21st century. But 2050–2100 is a wide timeframe, and climate change is becoming both increasingly present and more dire.

So when are countries committed to reaching net zero carbon emissions, and how serious is their pledge? This infographic from the National Public Utility Council highlights the world’s carbon neutral pledges.

The Timeline of Carbon Neutral Targets by Country

The first question is how quickly countries are trying to get to net zero.

137 countries have committed to carbon neutrality, as tracked by the Energy and Climate Intelligence Unit and confirmed by pledges to the Carbon Neutrality Coalition and recent policy statements by governments.

But the earlier the pledge, the better, and most of the commitments are centered around 2050.

Country Target Year
Bhutan Achieved
Suriname Achieved
Uruguay 2030
Finland 2035
Austria 2040
Iceland 2040
Germany 2045
Sweden 2045
Afghanistan 2050
Andorra 2050
Angola 2050
Antigua and Barbuda 2050
Argentina 2050
Armenia 2050
Bahamas 2050
Bangladesh 2050
Barbados 2050
Belgium 2050
Belize 2050
Benin 2050
Brazil 2050
Bulgaria 2050
Burkina Faso 2050
Burundi 2050
Cabo Verde 2050
Cambodia 2050
Canada 2050
Central African Republic 2050
Chad 2050
Chile 2050
Colombia 2050
Comoros 2050
Cook Islands 2050
Costa Rica 2050
Croatia 2050
Cyprus 2050
Czechia 2050
Democratic Republic of Congo 2050
Denmark 2050
Djibouti 2050
Dominica 2050
Dominican Republic 2050
Ecuador 2050
Eritrea 2050
Estonia 2050
Ethiopia 2050
European Union 2050
Fiji 2050
France 2050
Gambia 2050
Greece 2050
Grenada 2050
Guinea 2050
Guinea-Bissau 2050
Guyana 2050
Haiti 2050
Hungary 2050
Ireland 2050
Italy 2050
Jamaica 2050
Japan 2050
Kiribati 2050
Laos 2050
Latvia 2050
Lebanon 2050
Lesotho 2050
Liberia 2050
Lithuania 2050
Luxembourg 2050
Madagascar 2050
Malawi 2050
Maldives 2050
Mali 2050
Malta 2050
Marshall Islands 2050
Mauritania 2050
Mauritius 2050
Mexico 2050
Micronesia 2050
Monaco 2050
Mozambique 2050
Myanmar 2050
Namibia 2050
Nauru 2050
Nepal 2050
Netherlands 2050
New Zealand 2050
Nicaragua 2050
Niger 2050
Niue 2050
Norway 2050
Pakistan 2050
Palau 2050
Panama 2050
Papua New Guinea 2050
Paraguay 2050
Peru 2050
Portugal 2050
Romania 2050
Rwanda 2050
Saint Kitts and Nevis 2050
Saint Lucia 2050
Saint Vincent and the Grenadines 2050
Samoa 2050
Sao Tome and Principe 2050
Senegal 2050
Seychelles 2050
Sierra Leone 2050
Slovakia 2050
Slovenia 2050
Solomon Islands 2050
Somalia 2050
South Africa 2050
South Korea 2050
South Sudan 2050
Spain 2050
Sudan 2050
Switzerland 2050
Tanzania 2050
Timor-Leste 2050
Togo 2050
Tonga 2050
Trinidad and Tobago 2050
Tuvalu 2050
U.S. 2050
Uganda 2050
United Kingdom 2050
Uzbekistan 2050
Vanuatu 2050
Vatican City 2050
Yemen 2050
Zambia 2050
China 2060
Kazakhstan 2060
Ukraine 2060
Australia 2050 – 2100
Singapore 2050 – 2100

As far as early achievers go, Bhutan and Suriname are the only two countries that have achieved carbon neutrality and are actually carbon negative (removing more carbon than they emit). Uruguay’s 2030 target is the earliest to try and match that feat, followed by Europe’s Finland, Austria, Iceland, Germany, and Sweden, who are all targeting 2045 or earlier.

Over 90%, or 124 of the 137 countries tracked above, set a target of 2050 for reaching carbon neutrality. This is largely due to membership in the Carbon Neutrality Coalition, which asks member states to target 2050 for their goal but leaves commitment up to them.

Only five countries have net zero pledges set for after 2050, including Australia and Singapore, which haven’t set a firm target yet. Targeting 2060, in addition to Ukraine and Kazakhstan, is the world’s largest emitter, China. The country’s recent pledge is significant, since China accounts for an estimated 25% of global emissions.

In fact, according to the Climate Action Tracker, 73% of global emissions are currently covered by net zero targets.

How Seriously Are Countries Committing to Carbon Neutrality?

Setting a goal is perhaps the easiest step towards carbon neutrality. But the real challenge is in solidifying that goal and starting to make progress towards it. That’s why it’s important to consider how deeply committed each country’s carbon neutral pledge truly is.

The most rigid commitments are enshrined in law, followed by official government policy, though the latter can change alongside governments. Likewise, proposed legislation shows forward momentum in making pledges a reality, but proposals can take a long time to become enacted (or get derailed).

As it turns out, the vast majority of carbon neutral targets are only under discussion, with no formal action being taken to act on them.

Country Target Status
Bhutan Achieved
Suriname Achieved
Denmark Law
France Law
Hungary Law
New Zealand Law
Sweden Law
United Kingdom Law
Andorra Policy Document
Australia Policy Document
Austria Policy Document
Brazil Policy Document
China Policy Document
Costa Rica Policy Document
Finland Policy Document
Germany Policy Document
Iceland Policy Document
Ireland Policy Document
Japan Policy Document
Kazakhstan Policy Document
Marshall Islands Policy Document
Norway Policy Document
Panama Policy Document
Paraguay Policy Document
Portugal Policy Document
Slovenia Policy Document
South Africa Policy Document
Switzerland Policy Document
U.S. Policy Document
Ukraine Policy Document
Uzbekistan Policy Document
Vatican City Policy Document
Canada Proposed Legislation
Chile Proposed Legislation
European Union Proposed Legislation
Fiji Proposed Legislation
South Korea Proposed Legislation
Spain Proposed Legislation
Afghanistan Under Discussion
Angola Under Discussion
Antigua and Barbuda Under Discussion
Argentina Under Discussion
Armenia Under Discussion
Bahamas Under Discussion
Bangladesh Under Discussion
Barbados Under Discussion
Belgium Under Discussion
Belize Under Discussion
Benin Under Discussion
Bulgaria Under Discussion
Burkina Faso Under Discussion
Burundi Under Discussion
Cabo Verde Under Discussion
Cambodia Under Discussion
Central African Republic Under Discussion
Chad Under Discussion
Colombia Under Discussion
Comoros Under Discussion
Cook Islands Under Discussion
Croatia Under Discussion
Cyprus Under Discussion
Czechia Under Discussion
Democratic Republic of Congo Under Discussion
Djibouti Under Discussion
Dominica Under Discussion
Dominican Republic Under Discussion
Ecuador Under Discussion
Eritrea Under Discussion
Estonia Under Discussion
Ethiopia Under Discussion
Gambia Under Discussion
Greece Under Discussion
Grenada Under Discussion
Guinea Under Discussion
Guinea-Bissau Under Discussion
Guyana Under Discussion
Haiti Under Discussion
Italy Under Discussion
Jamaica Under Discussion
Kiribati Under Discussion
Laos Under Discussion
Latvia Under Discussion
Lebanon Under Discussion
Lesotho Under Discussion
Liberia Under Discussion
Lithuania Under Discussion
Luxembourg Under Discussion
Madagascar Under Discussion
Malawi Under Discussion
Maldives Under Discussion
Mali Under Discussion
Malta Under Discussion
Mauritania Under Discussion
Mauritius Under Discussion
Mexico Under Discussion
Micronesia Under Discussion
Monaco Under Discussion
Mozambique Under Discussion
Myanmar Under Discussion
Namibia Under Discussion
Nauru Under Discussion
Nepal Under Discussion
Netherlands Under Discussion
Nicaragua Under Discussion
Niger Under Discussion
Niue Under Discussion
Pakistan Under Discussion
Palau Under Discussion
Papua New Guinea Under Discussion
Peru Under Discussion
Romania Under Discussion
Rwanda Under Discussion
Saint Kitts and Nevis Under Discussion
Saint Lucia Under Discussion
Saint Vincent and the Grenadines Under Discussion
Samoa Under Discussion
Sao Tome and Principe Under Discussion
Senegal Under Discussion
Seychelles Under Discussion
Sierra Leone Under Discussion
Singapore Under Discussion
Slovakia Under Discussion
Solomon Islands Under Discussion
Somalia Under Discussion
South Sudan Under Discussion
Sudan Under Discussion
Tanzania Under Discussion
Timor-Leste Under Discussion
Togo Under Discussion
Tonga Under Discussion
Trinidad and Tobago Under Discussion
Tuvalu Under Discussion
Uganda Under Discussion
Uruguay Under Discussion
Vanuatu Under Discussion
Yemen Under Discussion
Zambia Under Discussion

Uruguay’s 2030 target might be the earliest, but it is not yet set in stone. The earliest commitment actually enshrined in law is Sweden’s 2045 target.

Including Sweden, only six countries have passed their carbon neutral targets into law. They include Denmark, France, Hungary, New Zealand, and the UK.

An additional five countries have proposed legislation in the works, including Canada and South Korea, as well as the entirety of the EU.

Meanwhile, 24 countries have their climate targets set as official policy. They include Brazil, China, Germany and the U.S., some of the world’s largest emitters.

99 of the 137 pledges are only under discussion at this time, or more than 72%. That means that they have no official standing as of yet, and are harder to act on. But as time starts to pass, pressure on countries to act on their carbon neutral pledges is beginning to grow.

The National Public Utilities Council is the go-to resource for all things decarbonization in the utilities industry. Learn more.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.visualcapitalist.com/race-to-net-zero-carbon-neutral-goals-by-country/

Visual Capitalist

RCEP Explained: The World’s Biggest Trading Bloc Will Soon be in Asia-Pacific

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When we’re in our comfort zones, we’re more likely to feel safe and familiar—and this same psychological effect is at play when we’re choosing where to invest. In fact, it’s widely understood that investors tend to prefer investing in their home country instead of taking a more global perspective, a behavior known as home bias.

However, investors could consider expanding their geographic exposure. From Shanghai to London, 20 of the world’s stock exchanges have a market capitalization above $1 trillion.

This infographic from MSCI highlights the possibilities in international equity investing. Let’s dive into some of the key concepts covered in the visualization.

Consider Correlations

For starters, by looking abroad, investors may be able to include markets in their portfolio that have relatively low correlation with their home market. This means the market movements are not as closely aligned, and the markets may behave differently from one another.

For instance, the U.S. has varying degrees of correlation with international stock markets. A correlation of 0 indicates there is no relationship between the market movements, while a correlation of 1 indicates that they move the exact same percentage in the same direction.

Country Correlation With U.S. Market
Japan 0.11
Taiwan 0.21
Korea 0.24
China 0.43
UK 0.58
France 0.59

Daily correlations based on data from December 31 2015-December 31 2020.

In the past, adding less correlated markets to a portfolio has helped to reduce overall volatility.

Manage Potential Concentration Risk

Technology companies have become more dominant in major U.S. stock indexes due to their strong performance. In the MSCI USA Index, for example, the weighting of FAANG stocks has doubled from about 8% in 2019 to more than 16% in 2021.

This increased concentration means that more of the performance and risk of each index can be driven by this small number of stocks. Branching out geographically can help to reduce that concentration risk.

Access Alternative Revenue Sources

Investors that focus in the U.S. may find their exposure to revenues and potential growth from other regions is limited. For example, only 31% of the MSCI USA Index’s revenue exposure comes from areas outside North America.

On the other hand, the MSCI All Country World Index derives about 70% of its revenue exposure from regions outside North America. As investors move towards a more global portfolio, they increase their exposure to revenue and potential growth from other regions.

Gain Exposure to Economic Growth From Other Regions

While GDP growth in developed economies has been more consistent, growth in emerging markets has been higher. For example, emerging markets typically experience higher GDP growth as they transition to industrial economies with higher standards of living.

Here is historical and projected data for various regions, based on average annual GDP growth.

Historical and Projected GDP Growth by Region

  2001-2020 2021P-2025P
Europe 1.45% 2.82%
North America 1.63% 2.84%
Pacific 2.52% 2.80%
World 3.33% 4.12%
Emerging Markets 5.12% 5.10%

Note: Projections as of April 2021. The Pacific region represents Japan, Hong Kong, Singapore, Australia, and New Zealand.

Emerging markets had GDP growth that outpaced other regions in the past, and the International Monetary Fund projects that they will continue to experience above average growth.

Increase Exposure to Innovation

Thematic investing is one way to gain exposure to innovation, and international investing is another potential method.

Innovation goes far beyond Silicon Valley, and is heating up abroad. In fact, over 70% of total R&D spending in 2018 originated outside of North America. Israel, Korea, and Taiwan were the top spenders as a percentage of GDP. By taking part in international equity investing, investors can aim to capitalize on new developments.

Access Attractive Valuations

Emerging markets have an attractive price relative to their return on equity, a measure of a stock’s profitability.

  Price to Book Value Return on Equity
U.S. 4.4 13.7
Emerging Markets 2.0 9.2
Europe & Middle East 1.9 8.5
Pacific 1.6 6.4

Data as of December 2020.

Emerging markets offer the second highest return of equity of the group, at a much lower price to book value than U.S. stocks. In other words, emerging market stocks offer strong investor returns in comparison to the price paid to obtain them.

Broadening Horizons With International Equity Investing

While many investors succumb to home bias, they could consider a wider set of investment options around the world. By engaging in international equity investing, investors can:

  • Aim to increase diversification and manage risk
  • Take advantage of growth opportunities
  • Access emerging markets

Global markets are changing. As innovation and growth accelerate outside North America, investors may want to consider new possibilities.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.visualcapitalist.com/rcep-explained-the-worlds-biggest-trading-bloc-will-soon-be-in-asia-pacific/

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Visual Capitalist

Euro 2020: Qualified Nations and Past Winners

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The 2020 European Championship Returns with New Rules

After a year-long delay, the 2020 UEFA European Championship is set to kick off what will be the largest international sports tournament to take place since the pandemic.

While the final stage of the tournament typically takes place in one or two nations, this year’s will be played across 11 different countries.

Running from June 11th to July 11th 2021, the opening game between Italy and Turkey will kick off at the Stadio Olimpico in Rome, and the final will take place at London’s Wembley Stadium.

COVID-19’s Impact on Teams and Spectators

Aside from the initial year-long delay, COVID-19 has changed how teams and spectators will participate in the tournament.

Squads have been expanded from 23 to 26 players, and coaches will be permitted to call up more players if COVID-19 infections force players into isolation.

For spectators, individual stadiums within host cities have announced varying capacities ranging from 20-100%, with strict stadium entry requirements across the board. Since these capacities are pre-tournament estimates, we’ll have to wait until matchday to see how many ticket-holders are comfortable attending the fixtures in person.

Host Stadium and City Spectator Capacity
Johann Cruijff ArenA, Amsterdam 25-45%
Baku Olympic Stadium, Baku 50%
Arena Națională, Bucharest 25-45%
Puskás Aréna, Budapest Aiming for 100%
Parken Stadium, Copenhagen 25-45%
Hampden Park, Glasgow 25-45%
Wembley Stadium, London Minimum of 25%
Football Arena Munich (Allianz Arena), Munich Minimum of 14,500 spectators (~22%)
Stadio Olimpico, Rome 25-45%
Estadio La Cartuja, Seville 25-45%
Krestovsky Stadium (Gazprom Arena), Saint Petersburg 50%

Source: UEFA

More Substitutions and the Video Assistant Referee System

This edition of the tournament will also feature two new rule changes to the action on the field.

Coaches will now be able to make up to five substitutions (six if the match goes to extra time), a change first introduced in domestic leagues to allow players more rest as match calendars became congested.

Another key change which was already in play at the 2018 FIFA World Cup is the Video Assistant Referee (VAR) system. This system appoints a match official who reviews the head referee’s decisions with video footage, and allows the head referee to conduct an on-field video review and potentially change decisions.

Strong Competition Among Euro 2020’s Favorites

Despite current world champions France remaining as undeniable favorites, bookies are putting England to win the tournament (despite a fairly young squad) partially due to the home field advantage in the semi-finals and final.

Spain, Germany, and Italy remain formidable competitors, and Belgium’s golden generation will have one final shot at silverware after their third place finish at the 2018 FIFA World Cup.

European champions Portugal are another obvious threat, as Cristiano Ronaldo will be looking to become the tournament’s top goalscorer of all time (currently tied with Michel Platini at 9 goals).

While the 2020 edition of UEFA’s European Championship features a variety of on-field and off-the-field changes, the trophy truly feels up for grabs and is a welcome return to international football for fans around the world.

»Like this? Then you might enjoy this article, The Top 10 Football Clubs by Market Value

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Source: https://www.visualcapitalist.com/euro-2020-qualified-nations-and-past-winners/

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The Biggest Companies in the World in 2021

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In 2021, investors continue to embrace environmental, social, and governance (ESG) investments at record levels.

In the first quarter of 2021, global ESG fund inflows outpaced the last four consecutive quarters, reaching $2 trillion. But while ESG gains rapid momentum, the CFA Institute shows that 33% of professional investors surveyed feel they have insufficient knowledge for considering ESG issues.

To help investors understand this growing trend, this infographic from MSCI helps provide a fact check on five common ESG myths.

1. “ESG Comes at the Expense of Investment Performance”

Fact Check: Not necessarily

Worldwide, ESG-focused companies have not only seen higher returns, but stronger earnings growth and dividends.

Returns by ESG Ratings Earnings Growth* Active Return** Dividends and Buybacks
Top tier 2.89% 1.31% 0.28%
Middle tier 1.35% 0.12% -0.02%
Bottom tier -9.22% -1.25% -0.05%

Source: MSCI ESG Research LLC (Dec, 2020)
*Contribution of earnings growth and dividends/buybacks to active return
**Active return is the additional gain or loss compared to it respective benchmark

In fact, a separate study from the CFA Institute shows that 35% of investment professionals invest in ESG to improve their financial returns.

2. “Investors Talk About ESG But Don’t Invest In It”

Fact Check: False

Global ESG assets under management (AUM) in ETFs have grown from $6 billion in 2015 to $150 billion in 2020. In just five years, ESG AUM have accelerated 25 times.

Today, money managers are focusing on the following top five issues:

Top ESG Issues Assets Affected Growth in Assets Affected (2018-2020)
Climate change / carbon emissions $4.18T 39%
Anti-corruption $2.44T 10%
Board issues $2.39T 66%
Sustainable natural resources / agriculture $2.38T 81%
Executive pay $2.22T 122%

Source: US SIF Foundation (Nov, 2020)

Meanwhile, over 1,500 shareholder resolutions focused on ESG-related matters were filed between 2018-2020. Not only are investors turning to ESG assets, but they are placing higher demands on corporate responsibility.

3. “ESG Investment Strategies Eliminate Entire Sectors”

Fact Check: Not necessarily

First, not all ESG investment approaches are exclusionary.

For instance, in North America roughly 51% of ESG ETFs used an ESG integration approach as of Dec. 31, 2020. In an ESG integration approach, ESG risks and opportunities are analyzed with the goal to support long-term returns.

By comparison, values and screens approaches, which accounted for over 22% of ESG ETFs in North America may screen out specific business activities, such as alcohol or tobacco, or sectors such as oil & gas.

Percentage of ESG Type Integration Values & Screens Thematic Impact
North America 50.9% 22.5% 20.7% 5.9%
Asia 57.8% 34.6% 3.8% 3.8%
Europe 30.8% 60.6% 8.6% 0.0%
Australia 28.6% 71.4% 0.0% 0.0%

Source: Refinitiv/Lipper and MSCI ESG Research LLC as of Dec 31, 2020 (MSCI Feb, 2021)

Second, companies are assessed on a sector-specific basis where ESG leaders and laggards are identified within each sector in comparison to peers. In other words, ESG doesn’t mean eliminating exposure to entire sectors. Instead, investors can choose from a range of companies based on their ESG ratings quality.

4. “ESG Investing Is Only For Millennials”

Fact Check: False

Although ESG is popular among millennials, ESG investing is being driven by the entire investor population. In 2019, one study finds that 85% of the general population expressed interest in ESG investing.

Interest in Sustainable Investing General Population Millennials
2019 85% 95%
2015 71% 84%

Source: US SIF Foundation (Nov, 2020)

Sustainable investing goes far beyond millennials—ESG disclosures are quickly becoming requirements for key industry participants, such as institutional investors and listed companies.

5. “ESG Investing is Here to Stay”

Fact Check: True

Climbing 28% in 2020 alone, over 3,000 signatories have committed to the UN Principles of Responsible Investment. As of the first quarter of 2021, 313 global organizations and 33 asset owners have been newly added.

Growth of UN PRI Number of Signatories* AUM Represented
2020 3,038 $103.4T
2019 2,370 $86.3T

Source: UN PRI
*As of Mar, 2020

Central to ESG’s growth is the availability of ESG investments. ESG investing has become more widely accessible—which wasn’t always the case. Over the last decade, the global number of ESG ETFs has grown from 46 to 497.

Why the Facts Matter

As ESG investments continue to play an even greater role in investor portfolios, it’s important to focus on data rather than prevailing ESG myths that are not backed by fact.

Given the recent momentum in investment returns and ESG adoption, data-driven evidence empowers investors to build more sustainable portfolios that better align with their investment objectives.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.visualcapitalist.com/the-biggest-companies-in-the-world-in-2021/

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Visual Capitalist

The Biggest Companies in the World in 2021

Published

on

In 2021, investors continue to embrace environmental, social, and governance (ESG) investments at record levels.

In the first quarter of 2021, global ESG fund inflows outpaced the last four consecutive quarters, reaching $2 trillion. But while ESG gains rapid momentum, the CFA Institute shows that 33% of professional investors surveyed feel they have insufficient knowledge for considering ESG issues.

To help investors understand this growing trend, this infographic from MSCI helps provide a fact check on five common ESG myths.

1. “ESG Comes at the Expense of Investment Performance”

Fact Check: Not necessarily

Worldwide, ESG-focused companies have not only seen higher returns, but stronger earnings growth and dividends.

Returns by ESG Ratings Earnings Growth* Active Return** Dividends and Buybacks
Top tier 2.89% 1.31% 0.28%
Middle tier 1.35% 0.12% -0.02%
Bottom tier -9.22% -1.25% -0.05%

Source: MSCI ESG Research LLC (Dec, 2020)
*Contribution of earnings growth and dividends/buybacks to active return
**Active return is the additional gain or loss compared to it respective benchmark

In fact, a separate study from the CFA Institute shows that 35% of investment professionals invest in ESG to improve their financial returns.

2. “Investors Talk About ESG But Don’t Invest In It”

Fact Check: False

Global ESG assets under management (AUM) in ETFs have grown from $6 billion in 2015 to $150 billion in 2020. In just five years, ESG AUM have accelerated 25 times.

Today, money managers are focusing on the following top five issues:

Top ESG Issues Assets Affected Growth in Assets Affected (2018-2020)
Climate change / carbon emissions $4.18T 39%
Anti-corruption $2.44T 10%
Board issues $2.39T 66%
Sustainable natural resources / agriculture $2.38T 81%
Executive pay $2.22T 122%

Source: US SIF Foundation (Nov, 2020)

Meanwhile, over 1,500 shareholder resolutions focused on ESG-related matters were filed between 2018-2020. Not only are investors turning to ESG assets, but they are placing higher demands on corporate responsibility.

3. “ESG Investment Strategies Eliminate Entire Sectors”

Fact Check: Not necessarily

First, not all ESG investment approaches are exclusionary.

For instance, in North America roughly 51% of ESG ETFs used an ESG integration approach as of Dec. 31, 2020. In an ESG integration approach, ESG risks and opportunities are analyzed with the goal to support long-term returns.

By comparison, values and screens approaches, which accounted for over 22% of ESG ETFs in North America may screen out specific business activities, such as alcohol or tobacco, or sectors such as oil & gas.

Percentage of ESG Type Integration Values & Screens Thematic Impact
North America 50.9% 22.5% 20.7% 5.9%
Asia 57.8% 34.6% 3.8% 3.8%
Europe 30.8% 60.6% 8.6% 0.0%
Australia 28.6% 71.4% 0.0% 0.0%

Source: Refinitiv/Lipper and MSCI ESG Research LLC as of Dec 31, 2020 (MSCI Feb, 2021)

Second, companies are assessed on a sector-specific basis where ESG leaders and laggards are identified within each sector in comparison to peers. In other words, ESG doesn’t mean eliminating exposure to entire sectors. Instead, investors can choose from a range of companies based on their ESG ratings quality.

4. “ESG Investing Is Only For Millennials”

Fact Check: False

Although ESG is popular among millennials, ESG investing is being driven by the entire investor population. In 2019, one study finds that 85% of the general population expressed interest in ESG investing.

Interest in Sustainable Investing General Population Millennials
2019 85% 95%
2015 71% 84%

Source: US SIF Foundation (Nov, 2020)

Sustainable investing goes far beyond millennials—ESG disclosures are quickly becoming requirements for key industry participants, such as institutional investors and listed companies.

5. “ESG Investing is Here to Stay”

Fact Check: True

Climbing 28% in 2020 alone, over 3,000 signatories have committed to the UN Principles of Responsible Investment. As of the first quarter of 2021, 313 global organizations and 33 asset owners have been newly added.

Growth of UN PRI Number of Signatories* AUM Represented
2020 3,038 $103.4T
2019 2,370 $86.3T

Source: UN PRI
*As of Mar, 2020

Central to ESG’s growth is the availability of ESG investments. ESG investing has become more widely accessible—which wasn’t always the case. Over the last decade, the global number of ESG ETFs has grown from 46 to 497.

Why the Facts Matter

As ESG investments continue to play an even greater role in investor portfolios, it’s important to focus on data rather than prevailing ESG myths that are not backed by fact.

Given the recent momentum in investment returns and ESG adoption, data-driven evidence empowers investors to build more sustainable portfolios that better align with their investment objectives.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.visualcapitalist.com/the-biggest-companies-in-the-world-in-2021/

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