This week in ESG
Trump attacks the climate – the world fights back.
Key highlights
✍️ Trump’s anti-ESG orders – Trump wasted no time signing executive orders to withdraw from the Paris Agreement, halt subsidies on electric vehicles, expand oil and gas production, and curtail diversity and inclusion initiatives on day-one.
🤝 24 US states remain committed to Paris Agreement – the US Climate Alliance – a coalition of 24 state governors – vowed to keep fighting for Net Zero, and uphold the Paris Agreement principles, despite Trumps orders.
💰 Bloomberg steps up for America’s Paris Agreement commitments - Bloomberg Philanthropies has agreed to fund the US’ Paris climate reporting and its membership of the UN Framework Convention on Climate Change (UNFCCC) – ensuring continued progress.
🔭 10,000 companies commit to science-based targets – the Science Based Targets initiative (SBTi) has seen over 10,000 different companies commit to their best-practice, science-based, climate targets. A 29% increase over the last 12 months.
📈 Net flows into ESG funds reached $16bn in Q4 – this impressive come-back was driven by European strategies (as US flows fell) and marks a significant rise on Q3 figures. In total, global sustainable assets climbed 8% in 2024 to reach $3.2trn.
Chart spotlight - 50% of new cars sold in China are now electric or hybrid vehicles
Battery Electric Vehicle
Plug-in Hybrid Electric Vehicle
Internal Combustion Engine Vehicle
Source: Bloomberg intelligence, November 2024
The chart shows the mix of new car sales in China over time, split by internal combustion, hybrids, and electric cars.
Why this matters?
As Trump’s policies threaten to hinder EV growth in the US, one country that’s still marching ahead is China. Since July, electric and hybrid cars made up over half of all new car sales in China, marking a clear tipping point in take up. This is helping fuel speculation that China has reached peak petrol consumption, with expectations that demand will steadily fall in the coming years. And what’s good news for the planet, spells trouble for oil and gas producers – who’re set to see falls in consumption, and hence demand, from their largest global market.
China’s vehicle landscape should keep trending towards electrification as existing internal combustion vehicles slowly roll out of use. That said, it’s debatable if the country can ever go fully electric, as this wouldn’t permit hybrid vehicles.
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