Monday, March 20, 2023

VERNAL EQUINOX 2023

These may be the UN climate panel's last words before we hit 1.5 C limit

IPCC says we'll likely exceed lower Paris target, but there's

still hope if we do these things

A man walks through the wreckage of a home. The sea can be seen in the background.
A man walks through the wreckage of the beachfront home that collapsed following beach erosion from Hurricane Nicole on Nov. 12, 2022, in Wilbur-By-The-Sea, Fla. A new UN report has some key points to make before the world hits 1.5 C of warming, a threshold where scientists say 'risks start to pile up.' (Rebecca Blackwell/The Associated Press)

The UN's international science panel on climate change has released what is likely its final report before the world hits 1.5 C of warming, one of the temperature targets that countries aimed not to exceed when they signed the Paris Agreement on climate change in 2016.

"Humanity is on thin ice — and that ice is melting fast," United Nations Secretary-General Antonio Guterres said at Monday's release of the latest synthesis report from the Intergovernmental Panel on Climate Change. "Our world needs climate action on all fronts — everything, everywhere, all at once."

This is likely the last warning the Nobel Peace Prize-winning collection of scientists will be able to make about the 1.5 mark, because their next set of reports will likely come after Earth has either breached the mark or locked into exceeding it soon, several scientists, including report authors, told The Associated Press.

Here are the key messages from Guterres and the report.

Rich nations must eliminate coal by 2030 and gas-fired electricity by 2035

Stepping up his pleas for action on fossil fuels, Guterres not only called for "no new coal" but also for eliminating its use in rich countries by 2030 and poor countries by 2040. He urged carbon-free electricity generation in the developed world by 2035, meaning no gas-fired power plants, either.

That date is key because nations soon have to come up with goals for pollution reduction by 2035, according to the Paris climate agreement.

Antonio Guterres stands behind a podium with the UN logo.
"Humanity is on thin ice — and that ice is melting fast," United Nations Secretary-General Antonio Guterres said at Monday's release of the latest synthesis report from the Intergovernmental Panel on Climate Change. "Our world needs climate action on all fronts — everything, everywhere, all at once." (Reuters)

New target for emissions cuts by 2035

After contentious debate, the UN science panel calculated and reported that to stay under the warming limit set in Paris, the world needs to cut 60 per cent of its greenhouse gas emissions by 2035, compared with 2019, adding a new target not previously mentioned in the six reports issued since 2018.

Scientists say we'll probably hit 1.5 C. That's bad, but there's still hope

"The choices and actions implemented in this decade will have impacts for thousands of years," the report said, calling climate change "a threat to human well-being and planetary health."

"We are not on the right track, but it's not too late,'' said report co-author and water scientist Aditi Mukherji. "Our intention is really a message of hope, and not that of doomsday.''

With the world only a few tenths of a degree away from the globally accepted goal of limiting warming to 1.5 C (2.7 F) since pre-industrial times, scientists stressed a sense of urgency. The goal was adopted as part of the Paris climate agreement and the world has already warmed 1.1 C (2 F).

The industrial backdrop of a BP refinery and a Uniper coal-fired power plant is seen in Gelsenkirchen, Germany, March 6, 2023.
Two wind turbines peek out behind a BP refinery and coal-fired power plant in Gelsenkirchen, Germany. A new UN report calls for an end to coal use in rich countries by 2030, and carbon-free electricity by 2035. (Martin Meissner/The Associated Press)

After 1.5 C, "the risks are starting to pile on," said report co-author Francis X. Johnson, a climate, land and policy scientist at the Stockholm Environment Institute. The report mentions "tipping points" around that temperature of species extinction, including coral reefs, irreversible melting of ice sheets and sea level rise on the order of several metres.

"The window is closing if emissions are not reduced as quickly as possible," Johnson said in an interview. "Scientists are rather alarmed."

"1.5 is a critical limit, particularly for small islands and mountain [communities], which depend on glaciers," said Mukherji, who's also the climate change impact platform director at the research institute CGIAR. 

Many scientists, including at least three co-authors, said hitting 1.5 C is inevitable. 

"We are pretty much locked into 1.5," said report co-author Malte Meinshausen, a climate scientist at the University of Melbourne in Australia. "There's very little way we will be able to avoid crossing 1.5 C sometime in the 2030s," but the big issue is whether the temperature keeps rising from there or stabilizes.

Scientists emphasize that the world, civilization or humanity won't end if and when Earth hits and passes the 1.5 degree mark.

Mukherji said "it's not as if it's a cliff that we all fall off." But an earlier IPCC report detailed how the harms — from coral reef extinction to Arctic sea ice absent summers to even nastier extreme weather — are much worse beyond 1.5 C of warming.

But 1.5 C may still be achievable

Guterres insisted "the 1.5-degree limit is achievable."

Science panel chief Hoesung Lee said so far, the world is far off course.

"This report confirms that if the current trends, current patterns of consumption and production continue, then ... the global average 1.5 degrees temperature increase will be seen sometime in this decade," Lee said.

A dark, black and white image of a dry lakebed in France
A usually submerged section of the lake Serre-Poncon is dry in southern France, on March 14, 2023. A new UN climate report is probably the last before the world hits 1.5 C of warming. (Daniel Cole/The Associated Press)

However, he said scientists hope the solutions outlined in the report will stabilize the globe's temperature around 1.5 C.

Asked whether this would be the last report to describe ways in which 1.5 C can be achieved, Lee said it was impossible to predict what advances might be made that could keep that target alive.

"The possibility is still there," he said. "It depends upon — again I want to emphasize that — the political will to achieve that goal."

We need to plan for a future warmer than 1.5 C

"It is certainly prudent to be planning for a future that's warmer than 1.5 degrees," said IPCC report review editor Steven Rose, an economist at the Electric Power Research Institute in the United States.

If the world continues to use all the fossil fuel-powered infrastructure that either exists now or is being proposed, Earth will warm at least 2 C, the report said.

Poor countries need huge boost in climate funding

The report and the underlying discussions also touch on the disparity between rich nations, which caused much of the problem, and poorer countries that get hit harder by extreme weather.

WATCH | Cyclone Freddie leaves at least 200 dead in southeast Africa:

More than 200 people are dead and many more are still missing in southeast Africa after the powerful Cyclone Freddy tore through the region. It’s believed to be the longest-lasting cyclone ever, made worse by climate change.

If the world is to achieve its climate goals, poorer countries need a "many-fold" increase in financial help to adapt to a warmer world and switch to non-polluting energy. Countries have made financial pledges and promises of a damage compensation fund.

If rich countries don't cut emissions quicker and better help victim nations adapt to future harms, "the world is relegating the least developed countries to poverty," said Madeline Diouf Sarr, chair of a coalition of the poorest nations.

What's not included in the report: latest data, instructions on what to do

Because the report is based on data from a few years ago, the calculations about fossil fuel projects already in the pipeline do not include the increase in coal and natural gas use after Russia's invasion of Ukraine, said report co-author Dipak Dasgupta, a climate economist at The Energy and Resources Institute in India. The report comes a week after the Biden administration in the United States approved the huge Willow oil-drilling project in Alaska, which could produce up to 180,000 barrels of oil a day.

Demonstrators hold up signs calling for action on climate change.
People take part in a Fridays for Future protest rally in Berlin, Germany, on March 3, 2023. (Michael Sohn/The Associated Press)

The report offers hope if action is taken, using the word "opportunity" nine times in a 27-page summary. Though "opportunity" is overshadowed by 94 uses of the word "risk."

The head of the IPCC said the report contains "a message of hope in addition to those various scientific findings about the tremendous damages and also the losses that climate change has imposed on us and on the planet."

"There is a pathway that we can resolve these problems, and this report provides a comprehensive overview of what actions we can take to lead us into a much better, livable future," Lee told The Associated Press.

Lee was at pains to stress that it's not the panel's job to tell countries what they should or shouldn't do to cap global temperature rise at 1.5 C.

"It's up to each government to find the best solution," he said.

Activists also found seeds of inspiration in the reports.

"The findings of these reports can make us feel disheartened about the slow pace of emissions reductions, the limited transition to renewable energy and the growing, daily impact of the climate crisis on children," said youth climate activist Vanessa Nakate, a goodwill ambassador for UNICEF.

"But those children need us to read this report and take action, not lose hope."

IPCC report: Here’s how we can defuse the

 ‘ticking time bomb’ of climate change



Pakistani women wade through floodwaters as they take refuge in Shikarpur district of Sindh Province, Pakistan. - Copyright AP Photo/Fareed Khan, File

By Rosie Frost • Updated: 20/03/2023 -

“If we act now, we can still secure a liveable, sustainable future for all,” Chair Hoesung Lee said at the launch of the latest Intergovernmental Panel on Climate Change (IPCC) report.

Written by the world’s leading climate experts, it lays out a clear path to drastically cut emissions and repair the damage that’s already been done. But it requires governments to get onboard and fund it - without delay.

This Synthesis Report brings together all the most up-to-date science on our warming planet.

It shows that, despite the unprecedented scale of the challenge, there are many solutions available to reduce greenhouse gas (GHG) emissions. Most importantly, they are available to us right now.

In 2018, the IPCC made the world aware of the unprecedented challenge of keeping global warming to 1.5°C. Five years later, it says that the challenge has become even bigger as GHG emissions have continued to rise.

The pace and scale of what has been done so far are insufficient to tackle climate change.

IPCC Chair Hoesung Lee adds that the Synthesis Report “underscores the urgency of taking more ambitious action”.

'Make no mistake, inaction and delays are not options': Latest IPCC report has been approved


1. We have no time left to waste


Scientists say that more than a century of burning fossil fuels as well as unequal land and energy use has led to global warming of 1.1°C. It has led to more frequent and intense extreme weather events that have impacted people around the world.

As the planet warms these hazards rapidly escalate. We see heavier rainfall, more intense heatwaves and other extreme weather.

“Humanity is on thin ice - and that ice is melting fast,” UN Secretary-General, António Guterres told a conference at the launch of the report.

He said that it details how humans are responsible for virtually all global heating over the last 200 years.

“The climate time bomb is ticking. But today’s IPCC report is a how-to guide to defuse the climate time bomb,” he said.

Widespread drought dried up large parts of Europe, the United States and China this past summer.AP Photo/Steven Senne, File

2. Countries that have emitted the least are feeling the impacts of climate change the most

The report also puts loss and damage in sharp focus. It says climate change will continue to hit the most vulnerable people and ecosystems especially hard.

Loss and damage refers to the negative consequences of climate change on human societies and the natural environment. It was an important topic at COP27 where a breakthrough agreement was made establishing a fund to address these consequences - particularly for vulnerable nations.

Climate justice is crucial because those who have contributed the least to climate change are being disproportionately affected.
Aditi Mukherji
One of the Synthesis Report's authors

“Climate justice is crucial because those who have contributed the least to climate change are being disproportionately affected,” says Aditi Mukherji, one of the Synthesis Report’s 93 authors.

Tax the rich: A wealth tax could fund better transport and weather warning systems, report finds


She adds that almost half of the world’s population lives in regions that are highly vulnerable to climate change. In the last decade, deaths from floods, droughts and storms were 15 times higher in these regions.

Accelerated action on adaptation will be required to close the gap between the measures we currently have and what is needed.

Floodwaters in the village in Sohbat Pur, a flood-hit district of Baluchistan province, PakistanAP Photo/Fareed Khan


3. UN Secretary-General uses Oscar-winning film to make his point


The UN Secretary-General told the press conference at the launch of the report that the world needs climate action on all fronts. He referenced a recent Oscar-winning film calling for “everything everywhere all at once”.

Guterres has proposed that the G20 come together for something called the Climate Solidarity Pact. This agreement would see all big emitters make an extra effort to cut emissions. Wealthy countries are called upon to give funds to help emerging economies keep the 1.5℃ target alive.



He said that countries need to hit the “fast forward button” on their net zero deadlines.

“Specifically, leaders of developed countries must commit to reaching net zero as close as possible to 2040, the limit they should all aim to respect,” Guterres said.

“This can be done. Some have already set a target as early as 2035.”

Guterres’ Acceleration Agenda also includes actions like:

Phasing out coal by 2040 at the latest

Net zero electricity generation by 2035 for developed countries

No more oil and gas licenses

“Every country must be part of the solution,” he said.

“Demanding others move first only ensures that humanity comes last.”

4. There is a clear way forward for climate resilience

The IPCC says that the solution lies in resilient development - finding ways to adapt to climate change or reduce greenhouse gas emissions that provide wider benefits.

“The greatest gains in wellbeing could come from prioritizing climate risk reduction for low-income and marginalised communities, including people living in informal settlements,” says Christopher Trisos, one of the report’s authors.

“Accelerated climate action will only come about if there is a many-fold increase in finance. Insufficient and misaligned finance is holding back progress.”

To be effective, the scientists say, these choices need to be rooted in our diverse values, world views and knowledge around the globe - including Indigenous knowledge. It would mean that these solutions are locally appropriate and socially acceptable.

Samela Satere Mawe, centre, Indigenous Leadership from the Brazilian Amazon at COP27.AP Photo/Peter Dejong

5. The money is there but it needs to be spent on the right solutions

We have the money we need to invest in rapidly reducing greenhouse gas emissions - if current barriers are removed, the IPCC says.

These barriers include information sharing, making finance available to those who need it and general international cooperation.

Governments are essential in bringing down these barriers as they can encourage investors and hand out public funding.

“Transformational changes are more likely to succeed where there is trust, where everyone works together to prioritise risk reduction, and where benefits and burdens are shared equitably,” Lee said.

We live in a diverse world in which everyone has different responsibilities and different opportunities to bring about change.
Hoesung Lee
IPCC Chair

Tried and tested policies which deliver deep emissions cuts and climate resilience need to be scaled up, according to the report. We need to share technology and know-how while making funding readily available.

“We live in a diverse world in which everyone has different responsibilities and different opportunities to bring about change,” Lee adds.

“Some can do a lot while others will need support to help them manage the change.”

Climate damage is worsening faster than expected, but there’s still reason for optimism – 4 essential reads on the IPCC report

THE CONVERSATION
Published: March 20, 2023 

Wildfires are becoming a greater risk in many countries as the landscape dries.

  Michael Nigro/Pacific Press/LightRocket via Getty Images

Reading the latest international climate report can feel overwhelming. It describes how rising temperatures caused by increasing greenhouse gas emissions from human activities are having rapid, widespread effects on the weather, climate and ecosystems in every region of the planet, and it says the risks are escalating faster than scientists expected.

Global temperatures are now 1.1 degree Celsius (2 degrees Fahrenheit) warmer than at the start of the industrial era. Heat waves, storms, fires and floods are harming humans and ecosystems. Hundreds of species have disappeared from regions as temperatures rise, and climate change is causing irreversible changes to sea ice, oceans and glaciers. In some areas, it’s becoming harder to adapt to the changes.

Still, there are reasons for optimism – falling renewable energy costs are starting to transform the power sector, for example, and the use of electric vehicles is expanding. But the change isn’t happening fast enough, and the window for a smooth transition is closing fast, the Intergovernmental Panel on Climate Change report warns. To keep global warming below 1.5 C (2.7 F), it says global greenhouse gas emissions will have to drop 60% by 2035 compared with 2019 levels.

That’s 12 years from now.


The extent to which current and future generations will experience a hotter world depends on choices made now and in the coming years. The scenarios show expected differences in temperature depending on how high emissions are going forward. IPCC sixth assessment report

In the new report, released March 20, 2023, the IPCC summarizes the findings from a series of reports written over the past eight years by hundreds of scientists who reviewed the latest evidence and research.

Here are four essential reads by some of the co-authors of those reports, each providing a different snapshot of the transformational changes underway.

1. More intense storms and flooding

A volunteer fire company assists with evacuation efforts following a flash flood in Helmetta, New Jersey, in August 2021. 
Tom Brenner / AFP via Getty Images

Many of the most shocking natural disasters of the past few years have involved intense rainfall and flooding.

In Europe, a storm in 2021 set off landslides and sent rivers rushing through villages that had stood for centuries. In 2022, about a third of Pakistan was underwater, and several U.S. communities were hit with extreme flash flooding.

The IPCC warns in the sixth assessment report that the water cycle will continue to intensify as the planet warms. That includes extreme monsoon rainfall, but also increasing drought, greater melting of mountain glaciers, decreasing snow cover and earlier snowmelt, wrote UMass-Lowell climate scientist Mathew Barlow, a co-author of the assessment report examining physical changes.


Annual average precipitation is projected to increase in many areas as the planet warms, particularly in the higher latitudes. IPCC sixth assessment report

“An intensifying water cycle means that both wet and dry extremes and the general variability of the water cycle will increase, although not uniformly around the globe,” Barlow wrote.

“Understanding this and other changes in the water cycle is important for more than preparing for disasters. Water is an essential resource for all ecosystems and human societies.”

Read more: The water cycle is intensifying as the climate warms, IPCC report warns – that means more intense storms and flooding

2. The longer the delay, the higher the cost

Extreme rainfall filled streets in Dhaka, Bangladesh, in July 2020. Flooding has become common in many South Asia cities. 
Munir Uz zaman / AFP via Getty Images

The IPCC stressed in its reports that human activities are unequivocally warming the planet and causing rapid changes in the atmosphere, oceans and icy regions of the world.

“Countries can either plan their transformations, or they can face the destructive, often chaotic transformations that will be imposed by the changing climate,” wrote Edward Carr, a Clark University scholar and co-author of the IPCC report focused on adaptation.

The longer countries wait to respond, the greater the damage and cost to contain it. One estimate from Columbia University put the cost of adaptation needed just for urban areas at between US$64 billion and $80 billion a year – and the cost of doing nothing at 10 times that level by mid-century.

“The IPCC assessment offers a stark choice,” Carr wrote. “Does humanity accept this disastrous status quo and the uncertain, unpleasant future it is leading toward, or does it grab the reins and choose a better future?”

Read more: Transformational change is coming to how people live on Earth, UN climate adaptation report warns: Which path will humanity choose?

3. Transportation is a good place to start


Electric vehicle sales have been accelerating, and new tax incentives and state zero-emissions requirements are expected to boost sales even more. 
Michael Fousert/UnsplashCC BY

One crucial sector for reducing greenhouse gas emissions is transportation.

Cutting greenhouse gas emissions to net-zero by mid-century, a target considered necessary to keep global warming below 1.5 C, will require “a major, rapid rethinking of how people get around globally,” wrote Alan Jenn, a transportation scholar at the University of California Davis and co-author on the IPCC report dealing with mitigation.

There are positive signs. Battery costs for electric vehicles have fallen, making them increasingly affordable. In the U.S., the 2022 Inflation Reduction Act offers tax incentives that lower the costs for EV buyers and encourage companies to ramp up production. And several states are considering following California’s requirement that all new cars and light trucks be zero-emissions by 2035.

Costs have fallen for key forms of renewable energy and EV batteries, and adoption of these technologies is rising. 
IPCC sixth assessment report

“Behavioral and other systemic changes will also be needed to cut greenhouse gas emissions dramatically from this sector,” Jenn wrote.

For example, many countries saw their transportation emissions drop during COVID-19 as more people were allowed to work from home. Bike sharing in urban areas, public transit-friendly cities and avoiding urban sprawl can help cut emissions even further. Aviation and shipping are more challenging to decarbonize, but efforts are underway.

He adds, however, that it’s important to remember that the effectiveness of electrifying transportation ultimately depends on cleaning up the electricity grid.

Read more: Revolutionary changes in transportation, from electric vehicles to ride sharing, could slow global warming – if they’re done right, IPCC says

4. Reasons for optimism

Solar panels have become increasingly common on homes, businesses and parking lots as prices have fallen. 
Ben McCanna/Portland Press Herald via Getty Images

The IPCC reports discuss several other important steps to reduce greenhouse gas emissions, including shifting energy from fossil fuels to renewable sources, making buildings more energy efficient and improving food production, as well as ways to adapt to changes that can no longer be avoided.

There are reasons for optimism, wrote Robert Lempert and Elisabeth Gilmore, co-authors on the IPCC’s report focused on mitigation.

“For example, renewable energy is now generally less expensive than fossil fuels, so a shift to clean energy can often save money,” they wrote. Electric vehicle costs are falling. Communities and infrastructure can be redesigned to better manage natural hazards such as wildfires and storms. Corporate climate risk disclosures can help investors better recognize the hazards and push those companies to build resilience and reduce their climate impact.

“The problem is that these solutions aren’t being deployed fast enough,” Lempert and Gilmore wrote. “In addition to pushback from industries, people’s fear of change has helped maintain the status quo.” Meeting the challenge, they said, starts with embracing innovation and change.

Read more: Climate change will transform how we live, but these tech and policy experts see reason for optimism

Editor’s note: This story is a roundup of articles from The Conversation’s archives.

Author
Stacy Morford
Environment + Climate Editor

Interviewed
Alan Jenn
Assistant Professional Researcher in Transportation, University of California, Davis
Edward R. Carr
Professor and Director, International Development, Community, and Environment, Clark University
Elisabeth Gilmore
Associate Professor of Climate Change, Technology and Policy, Carleton University
Mathew Barlow
Professor of Climate Science, UMass Lowell
Robert Lempert
Professor of Policy Analysis, Pardee RAND Graduate School



So you want to be a climate-conscious investor. Here's how to avoid greenwashing

Experts recommend taking a closer look at sustainable investments

Stock traders are shown at work.
Traders work on the floor at the New York Stock Exchange in New York on June 15, 2022. While a growing number of companies and funds claim climate-friendly credentials, many don't live up to their promises. (Seth Wenig/The Associated Press)

During a recent rally outside the University of Toronto, Saarthak Singh and Achint Singh joined the crowd urging the government to take action against climate change. But it's not the only way they advocate for a greener future. Both students also plan to make financial investments that will benefit the environment.

"Climate anxiety is at an all-time high," said Saarthak Singh. "How can I make sure that I'm also making a positive impact on the world?

Many Canadians are also letting their money do the talking. Assets in sustainable funds hit nearly $38 billion in Canada last year. But finding the right investments can be challenging: While a growing number of companies and funds claim climate-friendly credentials, many don't live up to their promises.

A student protester holds a sign at a climate rally at the University of Toronto on March 3. 2023.
A student protester holds a sign at a climate rally at the University of Toronto on March 3. 2023. (Nisha Patel/CBC)

More transparency needed

Achint Singh decided to take matters into his own hands and founded a sustainable investment club on campus. They wade through pages and pages of documents to make their decisions about what to support.

"The information isn't easily available. It's opaque," he said. "It's not something that everyday people can just look up…. There needs to be more transparency and more clarity."

Two students look for sustainable investment opportunities on their laptops.
Saarthak Singh, left, and Achint Singh look for sustainable investment opportunities on their laptops at the University of Toronto. (Nisha Patel/CBC)

Making it easier for people to sustainably invest will have ripple effects, he added.

"It will snowball into a bigger movement … companies will have to begin to pay attention."

A number of companies and funds now receive environmental, social and governance (ESG) ratings. They are created by various commercial and nonprofit organizations, including MSCI, Morningstar, and the Global Reporting Initiative.

But Saarthak Singh does not think many of them are stringent enough, noting some oil companies are rated relatively well. He'd like to see ESG baskets separated so that companies and funds can be judged on environmental activities alone.

"Let's not give credit to companies which are selling their carbon, right?" he said.

Greenwashing concerns

Industry watchers have also sounded the alarm over greenwashing, a phrase which describes companies or funds that advertise themselves as more climate-friendly than they really are. InfluenceMap is a climate change think-tank that examined more than 700 funds that were marketed using ESG and climate-related keywords in 2021. It found that 71 per cent had companies within their portfolios that didn't align with global climate targets.

Daan Van Acker, who wrote the report, says that while there has been a crackdown on greenwashing, more action from government regulators around language and labels is necessary.

"Right now there's very little consistency or standardization of what it does or doesn't mean to be green," he said.

The federal government has proposed some green investing guidelines that define which investments can use the green label. But they carve out room for some high-polluting activities, recommending that oilsands activities can be labelled as "transition."

Environmental groups have criticized the labels, saying to describe oil and gas as sustainable at any level makes little sense.

Looking under the hood

"When it comes to marketing of green investments, it is a little bit of a Wild West," said Tim Nash, president of Good Investing, which provides research and coaching to green investors.

"It's really important that Canadian investors look under the hood of their investments to really understand what's inside the fund that they're about to purchase."

Nash points to a fund like the Franklin Clearbridge Sustainable Global Infrastructure Income Active ETF. He says an investor might assume it's a climate-friendly fund but would be "quite shocked" to learn it includes Enbridge.

"At the end of the day, they're a pipeline company," he said. "If we could get the whole industry on board to use the same terms and expressions, I think that would go a long way."

For now, experts have some simple advice for investors to avoid greenwashing:

  • Know which companies are listed in green funds.
  • Look beyond buzzwords, such as "sustainable," for specific phrases, such as "fossil-fuel free."
  • Use screening tools like Morningstar that rate these funds on how green they are.
  • READ THIS BLOG

Are Oil Stocks Too Good For ESG 

InvestorsTo Pass Up?

  • Energy stocks gained a total of 135 percent over 2021 and 2022 and are on track to add another 22 percent this year, according to analysts cited by Bloomberg.

  • With such a gap between energy stock performance and the broader market, it's not surprising that ESG-minded investors are tempted by energy stocks.

  • Not everyone appears to even be sure what ESG actually is amid the heated debate about ESG investing in the U.S.

“We know that the transition will not be a straight line. Different countries and industries will move at different speeds, and oil and gas will play a vital role in meeting global energy demands through that journey.”

This is what BlackRock’s chief executive, Larry Fink, wrote in this year’s annual letter to shareholders. For such a fervent supporter of the energy transition, Fink’s admission of the vital role that oil and gas would continue to play in the world’s functioning may have been surprising at any other time.

Yet it came amid a wave of changing sentiment in the investment world. And this change is seeing investors rush back from ESG stocks to oil and gas.

Last year, BlackRock’s peer Vanguard quit a net-zero banking alliance—the Net Zero Asset Managers initiative—claiming it needed more clarity and independence concerning its environmental, social, and governance commitments to clients.

Also last year, global lenders including JP Morgan, Bank of America, and Morgan Stanley warned they would leave a UN-backed net-zero initiative for the financial sector—the Glasgow Financial Alliance for Net Zero—because their membership in it could end up violating U.S. antitrust legislation.

In fairness, the latter warning came as a result of a political pushback against ESG investing in the US. Conservative states targeted asset managers and banks that were making loud proclamations about their ESG plans that, by definition, would include reducing their exposure to oil and gas. Since for many of these states oil and gas are vital revenue contributors, the idea of such reduced exposure did not sit well.

Yet it’s not just a political pushback. Investors themselves are beginning to be in two minds about their dedication to ESG investments. Because while Larry Fink and his peers continue to reiterate their commitment to net zero and the transition, they are seeing very well where oil and gas stocks have moved over the past two years.

Energy stocks gained a total of 135 percent over 2021 and 2022 and are on track to add another 22 percent this year, according to analysts cited by Bloomberg. This surge compares with a not-so-impressive 5-percent gain for the S&P 500 over the two-year period.

With such a gap between energy stock performance and the broader market, it is not really surprising that investors previously committed exclusively to what is being advertised pretty much as the only ethical, responsible form of investment are now changing their attitudes.

Rockefeller Capital Management, Bloomberg reported this week, has a 6-percent energy weighting despite its dedication to ESG investing. The firm’s energy weighting is larger than the S&P 500’s, where energy stocks represent 4.8 percent of the total, the report notes.

Clients at Rockefeller’s wealth management unit, meanwhile, have boosted their combined holdings in the oil and gas industry, buying stocks in Exxon, Chevron, Petrobras, Diamond Energy, and all other public oil and gas companies regardless of size.

It’s self-evident that the excellent performance of oil and gas stocks during the last two years was one big reason why investors are once again paying attention to them. Another reason is the emergence of doubts and misgivings about the profitability of ESG investments.

Returns have been called into question, as have the green credentials of companies advertising as ESG-friendly. Not everyone is convinced that ESG investing is the only true path to the future world of profits. Not everyone appears to even be sure what ESG actually is amid the heated debate about ESG investing in the U.S. And this may lead to lawsuits.

According to this report in Responsible Investor, the debate could unleash a wave of litigation as investors seek clarity about the nature of ESG or seek to get compensation for unprofitable decisions made by their financial advisers on ESG grounds.

Such a development would likely compromise ESG as a concept further—financial advisers are not fans of litigation and might begin to think twice before advertising this or that investment as both ESG and profitable when it isn’t, as pointed out by critics.

“I think that our industry is going through a time where the consumers of these products could benefit from additional clarification,” the chief marketing officer of Parnassus Investments told Bloomberg. The firm has no oil and gas holdings, but pressure on the industry to reconsider has been growing.

“ESG funds pay a higher expense ratio. If you start showing a negative tracking error because you don’t hold energy, you’re going to close down the fund at some point,” accounting and auditing professor Shivaram Rajgopal from the Columbia Business School told Bloomberg.

In other words, if you’re only delivering on half of the promise—sustainable investment—but not on the other half—profits—the most natural thing for investors would be to insist on changes that rectify the situation. Because investing is not charity. It is an activity seeking a profit.

By Irina Slav for Oilprice.com

    Study shows social media content opens new frontiers for sustainability science researchers

    New study shows social media content opens new frontiers for sustainability science researchers
    A virtuous cycle for social media (SM) data and sustainability through transparency, 
    inclusivity, and responsible data use. 
    Credit: One Earth (2023). DOI: 10.1016/j.oneear.2023.02.008

    With more than half of the world's population active on social media networks, user-generated data has proved to be fertile ground for social scientists who study attitudes about the environment and sustainability.

    But several challenges threaten the success of what's known as  data science. The primary concern, according to a new study from an international research team, is limited access to data resulting from restrictive terms of service, shutdown of platforms, data manipulation, censorship and regulations.

    The study, published in the journal One Earth, is the first known to evaluate the scope of environmental social media research and its potential to transform  science. The 17-member research team analyzed 415 studies, published between 2011 and 2021, that examined social media content related to the environment.

    "Ideas about climate change and our environment are increasingly coming from social media," said Derek Van Berkel, assistant professor at the University of Michigan's School for Environment and Sustainability and one of the study' three lead authors. "Online communities like Reddit, or simply  shared by your friends on Facebook, have become digital landscapes where many ideas are shaped and formed."

    Understanding how those ideas are shaped aids science communicators in honing environmental messaging and prompts them to fill gaps where information is lacking or misrepresented.

    Despite the potential public benefits of social media data science, the authors argue, current business models of social media platforms have generated a vicious cycle in which  is treated as a private asset that can be purchased or sold for profit. This has raised  and mistrust of social media companies, leading to a greater demand for more regulation.

    The study supports the idea of replacing this  with a "virtuous cycle."

    "A virtuous cycle requires the collaboration of SM companies, researchers, and the public," said co-lead study author Johannes Langemeyer from the Institute of Environmental Science and Technology at the Autonomous University of Barcelona.

    "For their part, sustainability researchers can foster more trust and cooperation by embracing high ethical standards. Inclusivity, transparency, privacy protection, and responsible use of the data are key requirements—and will lead to an improved standardization of research practices moving forward," Langemeyer said.

    A promising example of cooperation from a social media platform was initiated in January 2021 when Twitter set a new standard for broader access to researchers by introducing a new academic research product track, which for the first time allowed free full-archive searches for approved researchers.

    Such an approach could have served as a model for wider open access across social media platforms. But confirming the fears of researchers, Twitter recently announced that as of Feb. 9, 2023, the company will no longer support free access.

    "SM data has the potential to usher in a revolution in the current practices of sustainability research, especially in the social sciences, with an impact on par with that of Earth observation in the environmental sciences," said co-lead study author Andrea Ghermandi from the Department of Natural Resources and Environmental Management at the University of Haifa in Israel.

    The study concludes that social media data assessments can support the 2015 U.N. Sustainable Development Goals that serve as a universal call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity.

    "Achieving the U.N. Sustainable Development Goals will require large-scale, multi-country efforts as well as granular data for tailoring sustainability efforts," the study authors wrote.

    "The shared values and goals of working for a  may provide common ground for the cooperation needed to fully realize the contribution that SM data offers."

    More information: Andrea Ghermandi et al, Social media data for environmental sustainability: A critical review of opportunities, threats, and ethical use, One Earth (2023). DOI: 10.1016/j.oneear.2023.02.008


    Journal information: One Earth 


    Provided by University of Michigan Should you pay for Meta's and Twitter's verified identity subscriptions? A social media researcher explains


    Are Influencers the Key to Fighting Climate Change?

    Evan Xie

    From makeup to books, people are increasingly basing their purchasing habits on what social media stars recommend. It shouldn’t come as a surprise, then, that influencers are swaying people to make more sustainable choices. A study released last week that was conducted by Unilever and the Behavioural Insights Team (BIT), which surveyed 6,000 people across the US, UK and Canada, found that 78% of consumers found influencers had the most impact on why people switch to sustainable choices. Traditional information outlets, on the other hand, lagged far behind—48% turned to TV documentaries, 37% turned to news articles and 20% turned to government campaigns.

    On the surface, these statistics are sobering. Influencers, who lack any oversight or ethical requirements, are the ones responsible for shifting consumer behavior toward more sustainable options.

    But this aligns with trends people have noted across the board. Gen Z has largely swapped TV time with social media usage, with one study finding that TV and film came behind video games, music, the internet and social media as young people’s favorite entertainment activities. Not only do 42% of Americans actively avoid reading the news, but 91% of young people get their news from social media. And overall trust in government institutions has reached a low of 27%, with many members of Gen Z believing the government hasn’t done enough to fight climate change.

    Meanwhile, influencers are reaching people where they are. That’s not to say that some influencers don’t encourage overconsumption. After all, the so-called, “haul video” featuring heaps of cheap fast-fashion clothes, dominates fashion and beauty influencer spaces.

    But there are an increasing number of creators carving out their niche with sustainability-centric content. On Instagram, people like @zerowastecutie and @DiandraMarizet share infographics focused on sustainable living tips and cutting out plastic. On TikTok, sustainability influencers are fighting against the overconsumption that runs rampant on the app. Some, like @climatediva, haul thrifted clothes, while creators like @tarabellerose make educational videos about environmental issues.

    None of this suggests that influencer culture writ large has entirely shifted towards eco-friendly practices. It does, however, indicate that influencers have been more successful than any other institution in convincing young people to move beyond just worrying about climate change and instead make specific life changes.

    The new paradigm makes sense, considering most influencers are between the ages of 18 and 34. And when coupled with the fact that young people are turning to TikTok rather than Google as their search engine of choice—just searching “zero waste” results in videos detailing budget-friendly ways to reduce waste and starter guides—short clips can go a long way in helping viewers get easy, actionable advice on simple lifestyle changes. A proposal that might not come across as effectively in a long documentary on TV or a news article.

    This is all to say that it would be easy to look at Unilever’s findings and bemoan the way influencers have infiltrated how information spreads. But it’s not their fault that they’ve managed to capture people’s attention. If news organizations or government campaigns want to actually reach young people, they could stand to take some tips from TikTok stars.