This week in ESG
An end to coal production and ESG-related fines for Vanguard.
Key highlights
🏭 The UK closes its last coal power station – the final plant shutdown its operations last Monday, ending all production of electricity via coal in the country.
🌴 The EU asks to delay deforestation regulation – the European Commission suggested a 12-month postponement to rules affecting many commodity-imports after facing significant pressure from countries such as Brazil and Indonesia.
💼 The demand for green workplace skills is growing faster than the supply - according to a LinkedIn study, demand for green jobs has increased by an average of 5.9% annually since 2021. If this trend continues, demand for green skills could soon outpace the available talent pool, creating a significant gap.
💰 Vanguard fined over misleading ESG claims – Australia fined Vanguard $12.9m AUS after one of its funds failed to uphold its own fossil fuels exclusion policy.
Chart spotlight - women have fewer green jobs than men
Source: IMF, International Labour Organisation Harmonized Microdata Repository
The chart above from the International Monetary Fund (IMF) highlights the percentage of the workforce in green jobs (those improving environmental sustainability or reducing emissions) across advanced and emerging economies, split by gender.
Why this matters?
It’s encouraging to see a continued growth in green jobs, which now employs 1 in 10 people worldwide, given the growing importance of the sector in reaching our climate goals. However, it's disappointing to see the lack of gender diversity in such jobs, which often come with a wage premium.
The IMF puts this lack of gender parity down to underrepresentation of women in the study of science, technology, engineering and mathematics (STEM).
For our solutions, this just highlights importance of social and governance considerations alongside environmental aspects. We review the gender and ethnic diversity of the fund managers held in our solutions on an annual basis, who in turn often engage on this issue with the underlying companies in their funds.
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