CORPORATE REPUTATION

Multinationals plan to divest and halt operations in Russia

Natural gas multinational ExxonMobil has announced it will exit a more than $4 billion joint venture with Russian state-owned company Rosneft. ExxonMobil is the latest oil business to cut ties, following moves by BP, Shell and Equinor. Following suit, oil giant TotalEnergies has said it will also review its business in Russia following pressure to follow rivals in cutting ties, although stopped short of pledging to divest. Others taking action include US aviation giant Boeing, which has announced it will suspend its operations in Russia. Additionally, further financial services firms such as Legal & General similarly announced it has cut its exposure to Russian shares and bonds and will sell positions in sanctioned Russian companies. Investment company Abrdn, and the UK’s biggest independent pension scheme the Universities Superannuation Scheme both announced plans to reduce Russian investments. (BBC News; The Guardian; Financial Times*)

CLIMATE CHANGE

Transition framework published to help finance climate risk

A new framework to support financial institutions in developing consistent climate and nature scenarios has been published by research platform Finance for Biodiversity Initiative. The “integrated” transition framework is the first of its kind and will enable financial institutions to better manage climate and nature-related risks and opportunities, and structure their approach to transition to a net-zero and nature positive world. The group says its integrated approach combines nature and climate considerations which ensures financial institutions correctly value assets, avoid the risk of mispricing assets, and ultimately encourages better financial performance. The group said its framework would “complement and strengthen” existing efforts to embed climate and nature considerations into financial decision making, highlighting its consistency with the Taskforce on Nature-related Financial Disclosures. (Business Green)*

BIODIVERSITY

Charity coalitions calls for $60bn biodiversity finance target

A coalition of charities has called on wealthy countries to commit to delivering at least $60 billion annually in international finance to enable biodiversity protection and enhancement in developing countries. The coalition, which includes Conservation International, Campaign for Nature, the Natural Resources Defense Council, the Nature Conservancy, WWF, and the World Resources Institute, put forward their request ahead of the UN biodiversity negotiations in Geneva this month. It argues that investment is necessary to compensate for the impact richer nations’ consumption habits are having on nature in poorer regions. Current biodiversity financing amounts to just $10 billion annually, a sixth of the needed budget. The charities said increased international biodiversity finance should also be accompanied by a push to eliminate harmful subsidies, increase domestic funding for nature, and boost resource use efficiency. (Business Green)*

WATER

Environment Agency drops 93% of serious pollution cases

England’s water authority the Environment Agency has downgraded 93% of prosecutions for serious pollution over four years, despite recommendations from frontline staff for perpetrators to face the highest sanctions. A leaked report has found that between April 2016 and December 2020, investigators recommended prosecution in 386 cases, but only 4% of cases were pursued, with the rest downgraded to a caution, enforcement notice, or marked for no further action. Of serious pollution incidents in rivers and coastal waters, only 19% of recommended prosecutions were pursued. The leak supports claims from within the Environment Agency that it has faced budget cuts to such an extent that investigating pollution incidents has been deprioritised, with incidents categorised as lower-level 3 and 4 incidents no longer investigated, leaving the regulator less able to deter polluters. (The Guardian)

STRATEGY

UK SMEs struggling to finance sustainability ambitions

A survey of 2,040 UK-based small- and medium-sized enterprises (SMEs) has found that one-third mention cost as a prohibitive barrier in reaching sustainability ambitions. Conducted by software firm Sage, the soon-to-be published survey found that just one-quarter of respondents said they expect their business to become more sustainable in the next 12 months. Respondents pointed to raw materials and energy price increases as key barriers to affordable sustainability. Another common challenge was found to be a lack of time to dedicate to sustainability, cited by 27% of respondents, and a lack of in-house skills, raised by 25%. Almost one-third said they feel pressure to become more sustainable from customers, with 26% feeling pressure from the government, and 23% from staff. (edie)

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