President Vladimir Putin instructed to prepare Russia for the “green pivot” of the West. The head of state instructed to develop measures against the risks of falling demand for domestic assets with high climatic risks. This follows from the list of instructions published on the Kremlin’s website following a meeting on the situation in the banking sector.
The Kremlin noted the threat to the Russian economy due to a decrease in demand from participants in the global capital market for assets that damage the environment. Putin asked the government and the Bank of Russia to develop an action plan that would reduce such risks. The report on the implementation of the order must be submitted to the head of state by September 1, 2021, and then updated every six months.
The demand for socially responsible investments in companies that meet ESG (environmental, social and governance) standards is growing worldwide. So, in 2020, funds that invest in clean energy companies became the leaders among US equity funds in terms of profitability, VTimes wrote. Large institutional investors are turning towards green investments.
So, the Norwegian Pension Fund – the largest reserve fund on the planet – three years ago began to abandon investments in oil and gas, which negatively affect the environment. The $ 1.3 trillion organization is currently committed to increasing investment in renewable energy.