The investment industry hits a ‘tipping point’ with nearly half of the world’s assets under management now committed to meeting climate goals, as more than one in 10 cars now sold in the UK are electric. Meanwhile, the European Union unveils a climate masterplan designed to cut emissions drastically over the next decade, Turkey scraps its restrictions on plastic waste imports just eight days after putting them in place, and 66 per cent of Brits say they are likely to ditch their sustainable habits once coronavirus restrictions lift. It’s the Good With Money weekly newsbrief.
Investment industry at ‘tipping point’ as $43tn in funds commit to net zero
The investment industry has reached a landmark “tipping point”, with almost half the world’s assets under management now pledged to meet climate change goals.
Amundi, Franklin Templeton, Sumitomo Mitsui Trust Asset Management and HSBC Asset Management are among the latest big investors to sign up to the Net Zero Asset Managers initiative.
The latest signatories mean that $43 trillion (£31 trillion) in assets – almost half of the asset management sector globally in terms of total funds managed – are now committed to achieving net zero emissions. The industry oversees $100 trillion (£72 trillion) worth of assets, according to data from Willis Towers Watson.
“This marks a fundamental tipping point across the investment sector and a significant boost in efforts to tackle climate change,” said Stephanie Pfeifer, chief executive of the Institutional Investors Group on Climate Change, one of the investor networks that brought the asset managers together.
One in ten new car sales now electric
More than one in ten new cars (10.7 per cent) sold last month was an electric vehicle (EV) – with sales led by the Tesla Model 3, new figures reveal.
June is the first month that electric car sales have gone through the 10 per cent mark, giving it an equal market share to diesel-powered cars. When plug-in hybrid models are included, EV sales accounted for 17 per cent of the total market.
Recording sales of 5,468, Tesla’s £42,000 Model 3 was June’s biggest-selling model followed by VW Golf with 4,629 sales and Ford Puma with 4,477 sales.
Meanwhile, motoring organisation the AA is urging the government to scrap VAT on the sale of EVs in the Autumn budget to boost sales and help the UK reach its 2050 net zero target.
Europe drives drastic carbon cut
The European Union has unveiled a raft of ambitious climate plans designed to cut emissions drastically over the next decade.
If approved, the “Fit for 55” package will put the bloc – the world’s third-largest economy – on course to hit its 2030 goal of cutting planet-heating emissions by 55 per cent from 1990 levels.
Other major economies including China and the United States – the world’s top two emitters – have committed to achieving net zero emissions, which scientists say the world must reach by 2050 to avoid catastrophic climate change. But the EU is the first to overhaul its legislation to drive greener choices within this decade among the bloc’s 25 million businesses and nearly half a billion people.
By 2019, the EU had cut its emissions by 24 per cent from 1990 levels. The move comes as wildfires rage across the west coast of America, and Las Vegas, Nevada, matched its all-time highest temperature of 47.2C (117F) on Saturday.
Turkey reverses plastic imports ban after eight days
Turkey has scrapped its restrictions on plastic waste imports just eight days after putting them in place following pressure from the country’s plastic industry.
The new rules were set to stop UK exports of polyethylene plastics to Turkey, which include soft plastic films and bags and containers for shampoos and detergents. The UK shipped nearly 198,000 tonnes of these types of plastic to the Turkey last year, accounting for a massive 94 per cent of plastic exports to the country.
Around 39 per cent of all UK plastic waste was sent to Turkey in 2020, up 36 per cent on the year before, after China clamped down on plastic waste imports, according to Greenpeace.
The restrictions were brought in following Greenpeace evidence of UK plastic being dumped and burned in Turkey. But they have now been overturned following talks with the plastics industry, including PAGDER Turkish Plastic Industrialists’ Association, who argued that the rules punished thousands of recycling companies.
Brits worried they’ll ditch sustainable habits as Covid restrictions lift
Brits are concerned their sustainable habits will slip when coronavirus restrictions lift, research shows.
A study of 2,000 adults found that more than a third have incorporated more “green” habits into their routine since lockdowns began in March 2020. But of those, 66 per cent admitted these habits are likely to become less of a priority when life returns to normal.
They say this is due to having less time (44 per cent), not being at home as often (42 per cent) and having other pressing priorities (39 per cent).
As a result of these findings, renewable electricity provider E.ON has created a new skill on Amazon Alexa to help people make their homes more sustainable.