ESG targets fail to impact on Global emissions. The reason is that ESG applies to the supply of energy, produced products etc. not the demand. The demand will always be meet and is ESG stifles local industry the demand is met by imports usually not subject to ESG. New South Wales exemplifies this issue. Despite a natural gas crisis, the state refuses to approve the Narrabri Gas Project and is instead building an LNG import terminal at Port Kembla. LNG imports have a significantly higher carbon footprint than local gas. Germany faced a similar scenario, imposing a fracking moratorium in 2018, halting shale gas exploration, and now relying on importing U.S. shale gas. The shortcomings of international agreements like the Paris Accord stem from their focus on energy supply rather than demand. Why is there so little emphasis on reducing or altering demand to improve the environment? Perhaps it's because targeting energy producers is easier, garners more publicity, and is more lucrative for activists and governments than addressing consumer behaviour. Australasian Centre for Corporate Responsibility (ACCR)
Despite some indications of #ESG backlash, the responsible investment community continues to be robust and expanding, writes Juliana Barbosa. https://lnkd.in/eX5cbfbm Are there some trends you have noticed? ACCR is well placed to enhance your shareholder #strategy and support your climate #stewardship initiatives. Contact us to discuss further.