February 24, 2023
Carbon Removal Experts Push Back on $11 Trillion Investor Group’s Move to Ban Carbon Removals from Net Zero Goals; AllianzGI to Begin Voting Against Companies that Don’t Link Exec Pay to ESG Performance; Government of Canada Invests in Training for Workers in a Net Zero Economy
Carbon Removal Experts Push Back on $11 Trillion Investor Group’s Move to Ban Carbon Removals from Net Zero Goals
A group of carbon market and removal-focused organizations announced the publication of an open letter to the Net Zero Asset Owners Alliance (NZAOA), calling on the investor group to affirm its support for carbon removal technologies, after disallowing their use in its members’ climate goals. The NZAOA is a UN-convened, member-led initiative of institutional investors committed to transitioning their investment portfolios to net-zero GHG emissions by 2050.
Carbon removals are critical to meeting global climate goals as incremental steps to address GHG emissions will not be enough to meet targets. The research, testing, and development required to responsibly scale carbon removal technologies is needed to avert a dangerous increase in global temperatures.
AllianzGI to Begin Voting Against Companies that Don’t Link Exec Pay to ESG Performance
Investment manager Allianz Global Investors (AllianzGI) warned that this year it will begin to vote against directors of large cap European companies that fail to integrate ESG performance metrics into executive pay policies. The company also introduced a new stewardship policy to vote against board directors of high emitting companies that don’t have sufficient net zero goals and strategies, beginning in 2024.
Investment managers' voting power is one of the more powerful tools with which the sector can influence companies to make changes that support social and environmental issues. The pressure to include ESG targets in pay also comes from other stakeholders, putting organizations against the wall. However, companies should consider their reasons before making a decision.
Government of Canada Invests in Training for Workers in a Net Zero Economy
The Minister responsible for the Federal Economic Development Agency for Southern Ontario announced that the Government of Canada is investing $46.5 million in Canadian Colleges for a Resilient Recovery (C2R2). Led by the Mohawk College of Applied Arts and Technology, C2R2 is a coalition focused on developing demand driven workforce training solutions for a net-zero emissions economy through the Sectoral Workforce Solutions Program.
Workers are essential to the transition toward a more sustainable economy; training the workforce will allow companies to have employees aligned with their values, workers that understand their new practices, and innovators across their value chain.