Tag: Morningstar

Morningstar’s Global Head of Sustainability Research has urged that asset managers to “own up” to the problem that passive investments pose to their Net Zero ambitions. He suggests that managers could “close traditional index funds and steer new money into net-zero index funds”, although admits this is “unlikely”. Failing that, he says that managers could push for regulatory solutions that would limit automatic inclusion of companies that don’t have Net Zero commitments in portfolios. Or, he adds, they could press the “companies they think they have to own” to make their own Net Zero commitments, using direct engagement and voting.    

There is an “unprecedented” shift in capital allocation towards renewables and away from “long cycle” oil projects driven by an “extraordinary divergence” in cost of capital, according to Michele Della Vigna, a London-based analyst at Goldman Sachs. Della Vigna told Bloomberg that returns of 20% are now ne…