Global sustainable investment market tops $21 trillion
The global sustainable investment market has grown “substantially” over the past two years with assets hitting $21.4 trillion by the start of 2014, according to a new report by the Global Sustainable Investment Alliance (GSIA). The report finds that assets employing sustainable investing strategies have risen from 21.5 per cent to 30.2 per cent of the professional management assets across the regions covered. Moreover, the report confirms sustainable investment represents a significant share of the market in several territories. For example, in Europe more than half of professionally managed assets practice an ESG strategy, while in Australia, the United States and Canada the sector’s share of the market ranges from 17 to 31 percent. The UK market, meanwhile, is said to be growing at a rate of 32 per cent a year. (BusinessGreen)
The World Bank’s latest Green Bond is its biggest
The World Bank announced its biggest and longest duration Green Bond to date, a $600 million fixed-rate 10-year bond. Bought by investors such as Blackrock, Deutsche Bank and Nippon Life Insurance Co., the World Bank has issued nearly $8 billion in 80 green bonds since 2008. Available in 18 currencies, the bonds support numerous projects and technologies that increase energy efficiency, reduce greenhouse gas emissions, and improve infrastructure that prevents climate-related damage. In 2014, Green Bonds reached a record $36.6 billion, more than triple the previous year ($11 billion), and many expect the market to hit $100 billion this year. Seventy-three issuers released bonds last year, with more development banks participating, and with corporations and municipalities also entering the market. All were over-subscribed. If even a fraction of the $80 trillion bond market moved to environmental finance, it could tip the scales in the climate fight, said Angus McCrone, chief editor for Bloomberg New Energy Finance. (GreenBiz; Sustainable Business)
Supply Chain
Adidas Group exceeds 2014 Better Cotton target
The adidas Group has announced that in 2014, it sourced more than 30 percent of all of its cotton as Better Cotton, exceeding the originally planned 25 percent target. The Better Cotton Initiative (BCI) works with organisations from across the cotton supply chain and interested stakeholders to address the negative social and environmental impacts of mainstream cotton farming, such as excessive pesticide and water use, while also promoting fair working conditions for the cotton farmers and their workers. Adidas’ next target is to source 40 percent Better Cotton by the end of 2015, with a commitment to source 100 percent of its cotton across all product categories in all brands as ‘sustainable cotton’ by 2018. Adidas says buy-in throughout its supply chain has been critical to reaching its targets; beginning in 2014, the company brought many of its suppliers into BCI, as well. (Sustainable Brands)
Strategy
Shell shelves plan for tar sands project in face of low oil prices
Shell has shelved plans for a major new tar sands mine in Canada, the largest project to fall victim to low oil prices so far. The oil giant has withdrawn its application for the 200,000-barrel-per-day (bpd) Pierre River project and will instead concentrate on boosting the profitability of its existing oil sands operations. Oil sands extraction is controversial because of its high carbon footprint compared to conventional crude. A study in January found that virtually all tar sands exploitation was incompatible with a 20C limit, while prominent climate scientist Prof. James Hansen has previously said that it would be “game over” for the climate if Canada’s tar sands were fully exploited. Shell’s withdrawal from the Pierre River project is the latest in a series of blows to the oil sands industry. Total, Statoil and Cenovus Energy have all recently postponed big oil sands projects. (The Guardian)
Certification
Safeway to sell world’s first Fair Trade Certified Seafood
Safeway and Fair Trade USA have announced a partnership to launch Fair Trade Certified™ seafood into the North American market. The program addresses both social and environmental responsibility in fishing communities across the globe. Its goal is to build resilient livelihoods in impoverished coastal communities, improve working and living conditions, increase supply and demand for responsibly sourced seafood, and enhance environmental stewardship. Similar to other well-known Fair Trade Certified products, such as coffee, tea, cocoa, flowers, produce and apparel, the Fisheries program requires fishermen to source and trade according to rigorous, independently audited standards. Fair Trade is also helping to foster community collaboration among isolated groups of fishermen. For every Fair Trade Certified tuna sold, fishermen receive an additional Community Development Premium which they can collectively invest in community projects such as education and healthcare. (Sustainable Brands)
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