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2021 Responsible Investment report highlights focus on human rights abuses, corruption, aggressive tax planning. . More than half of divestments by Norges Bank Investment Management (NBIM) last year were the result of unacceptable social and governance-related risks. trillion in assets under management (AUM). Long-term perspective.
However, “power and gas still pay” as – behind transport – gas and conventional power generation were the main beneficiary of the 2021 recovery, the reported noted. The investors that were more exposed to power and gas benefited more than the peer groups that had mostly divested from conventional power generation.
But when the largest players’ strategies are so wholly focused on dirty revenue maximisation – campaign Follow This called Chevron’s purchase of Hess a bet that Paris would fail – is there any justification for engagement over divestment? At the very least, investors should pursue a policy of engagement with consequences.
False dawn Things started to change in 2021. We pursue a strategy of engagement rather than divestment. Rise and fall Fast forward to September 2021. But this understanding lacked focus. It was largely driven by formalities, and for many investment managers was probably viewed as just another box-ticking exercise.
As an emerging market, offshore wind was expensive to produce twice the cost of onshore but as DONG divested of its fossil fuel assets, it put all of its resources into optimizing every aspect of offshore construction and operation. Its stock price soared, with the companys market value peaking in 2021 at more than US$95 billion.
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