A coalition of university investment funds has called on institutional investors to rebel against the boards of fossil fuel companies and their backers.
As Shell prepares for its annual shareholder meeting this week, representatives from the Universities of Newcastle, Sussex, Bristol and from Trinity College, Cambridge, have written an open letter to the asset management industry urging “bold action” to stop new fossil fuel projects.
The letter, seen by the Guardian, asks asset managers to vote against directors of companies pursuing or backing new projects. It also asks investors to support all climate-linked shareholder resolutions, particularly those that call for an end to new fossil fuel projects.
A spokesperson for the University of Sussex said: “Our academics have identified new fossil fuel projects as a key threat to meeting critical global climate targets, including limiting global heating to 1.5 degrees. Asset managers, who hold trillions in investments on behalf of their clients, have a key role to play in stewarding the world’s economy away from fossil fuels.”
The latest call for a revolt against the fossil fuel industry has emerged as Shell braces for what is expected to be one of its most hostile annual meetings in London after fierce climate protests in recent weeks that have disrupted the AGMs held by BP, Barclays and Drax.
Leading investment funds, proxy advisers and activist shareholders are preparing to take Shell to task for failing to outline a business strategy that aligns with the Paris climate agreement.
The company’s chair, Sir Andrew Mackenzie, will face calls to be ousted from the board by the Church of England Pensions Board, Britain’s Local Authorities Pension Funds Forum and the UK’s biggest workplace pensions manager, Nest.
Shareholder advisers at PIRC and USS have also recommended that shareholders vote against the reappointment of Mackenzie, or other board members, to protest against what they view as insufficient progress on the energy transition.
The same funds have also backed an activist shareholder resolution from the Dutch climate campaign group Follow This, which is calling for oil companies to set a strategy that aligns with the goal of limiting global heating to within 1.5C of pre-industrialised levels enshrined in the Paris climate agreement.
For the first time, Follow This has won the support of investors that are leading the world’s largest climate-focused investor group Climate Action 100+ in its engagement with Shell. The Dutch funds PGGM and MN are expected to call on the investors within the Climate Action 100+, which represents $68tn (£54.6tn) in assets, to vote in favour of the resolution.
The Follow This campaign has been emboldened by concerns among ethical investors that the oil giant may be preparing to water down its commitments to reduce fossil fuel production in order to take advantage of soaring global energy prices.
A spokesperson for Shell said the company strongly disagreed with the Follow This resolution and with those organisations that had recommended supporting it. The company said there should be an emphasis on “changing the use of energy as much as its supply, and this is reflected in our approach”.
The spokesperson said: “We trust a vast majority of shareholders will agree on the need to collaborate in balancing the supply and use of energy to accelerate the energy transition, while reducing the social costs.”
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
