The developments described above explain the growing pressure coming from politics and the regulatory side. And indeed, things are happening in the private financial sector. In his presentation, Thomas Maletz mentioned a few examples of investors, insurance businesses and companies changing their attitude and their policies, aiming at sustainable strategies.
Blackrock, for example, is conducting a “tectonic shift to sustainable investing”. As Blackrock is stakeholder and shareholder of thousands of large companies all over the world, they are moving und pushing companies, investors, and asset managers to do more sustainable business. The reason: They expect to earn more from sustainable investments than from non-sustainable investments.
Other examples that illustrate the paradigm shift in the last two years are big insurers like AXA and Allianz. They have announced strengthening their restrictions on coal, oil, and sands business. It will be very interesting to see what effects this will have on the behaviour of credit insurers and setting credit limits.
A landmark case was certainly the judgement of the Netherlands court in July 2021 that oil giant Shell must reduce its emissions in order to align its policies with the Paris Agreement. The decision applies in the Netherlands only but will for sure have wider effects elsewhere.
According to Thomas Maletz, this development is expected to be continued.