Welcome to Sustainable Views’ knowledge hub: the section of the site where we archive useful research we’ve read over the past weeks, so you can improve your knowledge and easily refer back to your favourite resources
If you find this section of the site useful, we want to hear from you. Tell us how you use it by emailing sustainable.views@ft.com, and we’ll endeavour to develop this section to suit your preferences.
No ‘Green Majors’ on offer
A new paper published in the science journal Nature explores the common misconception evident in the focus of sustainability policy.
The paper, written by Nadia Ameli, Sumit Kothari, and Michael Grubb, concludes that governments and regualtors’ emphasis on disclosure will not be enough to force the decarbonisation of investment portfolios, since there is a lack of credible alternatives to holdings in commodities like oil.
Examining the sheer size and stability of oil majors compared to upstart renewable energy investment opportunities, the academics point out that many investors will fail to see a like-for-like switch, requiring additional policy measures.
You can read the full paper here, or read the authors’ opinion piece in this week’s edition here.
ESG still tops board agendas
Corporate boards are under pressure from a wave of new shareholder engagement.
A paper on corporate governance and executive compensation by law firm Shearman & Sterling finds that whereas virtually no climate-related shareholder proposals were carried in votes as recently ias 2019, investors are now making use of their power to enforce a sustinability agenda.
Workforce diversity proposals are also gaining more support than previously, and the report found that ESG metrics are now making their way into executive compensation structures.
Read the full report here, or Silvia’s article on the topic here.