Podcast Summary
Europe's military strengthening, asset managers exit climate group: Europe is enhancing its military capabilities, while major asset managers JPMorgan, State Street, and BlackRock have left a climate change group, signaling shifts in geopolitical tensions and priorities.
Europe's military is gearing up for greater capabilities in response to geopolitical tensions, with the European Union aiming to boost its defense industry through incentives and joint contracts between member states. Meanwhile, three major asset managers, JPMorgan, State Street, and BlackRock, have withdrawn from Climate Action 100 Plus, a climate change group that uses shareholder influence to pressure companies to decarbonize. The reasons for their departure are unclear, but it may indicate a shift in strategy or priorities for these asset managers. The EU's military ambitions and asset managers' decisions regarding climate change initiatives reflect larger trends of geopolitical tensions and environmental concerns shaping global policies.
US asset managers withdraw from ESG pressure: Major US asset managers, including State Street and BlackRock, are reducing their focus on ESG initiatives due to their legal obligation to prioritize clients' financial interests, weakening Climate Action 100+'s influence
US asset managers, including State Street and BlackRock, are stepping back from collective pressure on companies to change business models due to their legal obligation to prioritize clients' financial interests. This comes amidst a broader backlash against Environmental, Social, and Governance (ESG) initiatives from Republicans, who argue that these efforts are not always in the financial or political interests of investors. This development is seen as a significant victory for the GOP and a blow to organizations like Climate Action 100+, which relies on the influence of major asset managers to pressure companies to decarbonize. Despite this setback, the consensus for climate action remains strong outside the US, and Climate Action 100+ still has significant clout with its 700 members. However, the departure of major players like State Street, BlackRock, and Vanguard, which collectively own close to 20% of all American companies, will make it more challenging for the organization to exert influence.
Improving soil quality through regenerative agriculture: Regenerative agriculture is a farming practice that enhances soil quality, reduces chemical inputs, and offers carbon sequestration potential. Companies can support farmers in this approach to reduce their carbon footprint and improve sustainability.
Regenerative agriculture is a farming practice focused on improving soil quality, reducing the use of pesticides and fertilizers, and increasing carbon storage in the soil. This approach is gaining interest from food companies due to agriculture's significant contribution to global emissions. Farmers like Sophie and Tom Gregory in Somerset have adopted this method, moving beyond organic farming to address the decline in soil quality. Regenerative agriculture not only benefits the environment and biodiversity but also offers potential for carbon sequestration, helping companies offset their carbon footprint. However, farmers may initially face challenges in understanding and implementing the holistic approach required for successful regenerative agriculture.
Farmers' skepticism towards carbon offsetting through regenerative agriculture: Regenerative agriculture is beneficial for livestock and soil health, but its carbon sequestration capacity is not unlimited and difficult to measure accurately.
Sophie and Tom, farmers who adopted organic farming and later moved to regenerative practices, are enthusiastic about the benefits of regenerative agriculture for their livestock and soil health. However, they are skeptical about its ability to offset the carbon footprint of farming due to the difficulty in accurately measuring carbon sequestration in the soil. Sophie and Tom are not alone in their skepticism, as experts agree that companies should not oversell the carbon aspect of regenerative agriculture and that the carbon sequestration capacity of some soils is not unlimited. The complexity of measuring carbon emissions from various farm activities, including those of animals, adds to the challenge. Therefore, while regenerative agriculture is an important step towards sustainable farming, it should not be relied upon solely to address farming's carbon footprint.
Regenerative agriculture reaches equilibrium and cocoa market faces shortages: Regenerative agriculture increases carbon storage but reaches a new equilibrium, while the cocoa market experiences supply shortages due to bad weather and disease, leading to record-high prices.
While regenerative agriculture practices can increase carbon storage in the soil, it will eventually reach a new equilibrium. Therefore, while it's a good step towards reducing emissions, more actions are needed within supply chains. In other news, the cocoa market is experiencing supply shortages due to bad weather and disease, leading to record-high prices and a scramble from traders and processors to meet chocolate makers' demands. So, as you enjoy your Valentine's Day chocolates, keep in mind the impact on the cocoa industry. For more on these stories and other business news, visit ft.com and listen to next week's Feet news briefing. In addition, UnitedHealthcare's Health ProtectorGuard fixed indemnity insurance plans, underwritten by Golden Rule Insurance Company, can help individuals manage out-of-pocket costs by supplementing their primary plans. This Mother's Day, consider giving back to the special moms in your life with handmade bouquets, sweet treats, gourmet food, and unique gifts from 1800flowers.com, and save up to 40% on Mother's Day bestsellers using the promo code "acast" at checkout.
