Biden-Harris Announce Funding for Zero-Emission Vehicle Corridors, Expansion of EV Charging in Underserved Communities
Welcome to this week’s ESG policy roundup. A home to find out some of the weeks headlines in the ESG world.
This week: Biden’s administration has taken a step towards decarbonization, announcing funding for zero emissions corridors, AXA IM has announced a series of metrics tying ESG to executive compensation and Finally investors have been put on high alert after allegations of fraud regarding Adani’s green portfolio.
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Biden-Harris Announce Funding for Zero-Emission Vehicle Corridors, Expansion of EV Charging in Underserved Communities
The Biden-Harris Administration, through the U.S. Department of Energy (DOE), announced funding to accelerate the creation of zero-emission vehicle corridors that expand the nation’s electric vehicle charging infrastructure.
The Department has awarded $7.4 million to seven projects to develop medium- and heavy-duty electric vehicle charging and hydrogen corridor infrastructure plans.
Additionally, the DOE announced its intent to release funding to address barriers to a cleaner, safer, more affordable, and more reliable Made in America EV charging network
The DOE-funded projects will focus on electrification plans for essential and heavily trafficked domestic freight corridors.
These funding measures will be critical to achieving President Biden’s goals of building out a national network of 500,000 EV chargers and ensuring that 50% of new light-duty vehicle sales are electric by 2030. A push in the right direction in America’s own push to decarbonize the economy rapidly according to their own emission reduction plans.
AXA IM Aligns Compensation of Senior Executives to ESG Ambitions
As part of its commitment to becoming net zero as a business and investor by 2050 to help the transition to a more sustainable world, AXA Investment Managers (AXA IM) is now including ESG targets in the remuneration of its senior executives.
From 2023, the deferred compensation of c. 400 people that will start to be paid in 2024 will include, alongside existing criteria, the following ESG metrics according to the employee’s business area and remit:
The weighted average carbon intensity (WACI) to reach the target of 25% reduction in carbon intensity for corporate portfolio by 2025: for the ESG part of the deferred compensation, this metric accounts for 75% for AXA IM Core and 37.5% for transversal functions employees in scope.
An assets under management (AUM) target for 50% of the real estate portfolio to be aligned to the CRREM trajectories by 2025: for the ESG part of the deferred compensation, this metric accounts for 75% for AXA IM Alts and 37.5% of transversal functions employees in scope.
The reduction of the corporate operational CO2 footprint, to reach the interim target to reduce it by 26% by 2025: for the ESG part of the deferred compensation, this metric accounts for 25% for all AXA IM Core, AXA IM Alts and transversal functions employees in scope.
Linking executive compensation to ESG goals has long been a policy supported by ESG experts. Tying non-financial goals to financial goals signals a firm belief in the goals attached and alignment with sustainable growth.
Norway’s largest pension fund, KLP, recently dumped its entire holding of shares in Adani Green Energy Ltd amid concerns that funds are being used to finance coal mining
Norway’s largest pension fund, KLP, recently dumped its entire holding of shares in Adani Green Energy Ltd., the renewables part of the empire, amid concerns that it might inadvertently have helped finance some of the world’s most polluting activities via the stake.
A Feb. 10 public filing has since made clear that Adani is using stock from its Green companies as collateral in a credit facility that’s helping to finance the Carmichael coal mine in Australia, via Adani Enterprises Ltd.
Since short-seller Hindenburg Research published its critical report on Jan. 24, investors have responded to its allegations of fraud and market manipulation by selling Adani shares. But for investors with environmental, social and governance mandates, there’s an added layer of pain as they realize their green dollars were indirectly supporting the dirtiest of fossil fuels.
More than 500 funds registered in the European Union as “promoting” ESG goals hold Adani stocks, either directly or indirectly, according to data compiled by Bloomberg.
The recent Adani scandal has highlighted a new risk in ESG investing. Fund managers have been put on high alert as to what projects they are truly financing. This follows on from different regulators attempting to codify product description making sure asset owners are not greenwashing.