The hot topic of environmental, social, and governance (ESG) investment will come under the spotlight at the third annual Press & Journal Virtual Business Breakfast of 2021.
ESG principles of investment are restructuring the make up of our society with the north-east of Scotland at the forefront if this change.
In particular, this growing global concern means we face radical reform of our production and consumption of energy.
Aberdeen and Aberdeenshire have the skills and knowledge necessary to deliver on the energy transformation required to meet these investment requirements, but is the region making its case to the people that matter?
And will the investment that is being focused on ESG-conforming assets be sufficient to support a fair transition as the region’s economy shifts from its reliance on hydrocarbons to newer, cleaner forms of energy?
These are just some of the questions that will be addressed at the Burness Paull-supported event on Thursday, July 1 chaired by Press & Journal business editor, Erikka Askeland.
Our audience will comprise of key members from the north-east business community, with an expert business panel featuring guest speakers including Bob Ruddiman from Burness Paull.
Thought behind investment
Investors are being increasingly influenced by environmental, social and governance (ESG) themes and all want to make responsible choices.
Globally, ESG assets are on track to reach $53 trillion (£37.6tn), up from $37.8 trillion by the end of this year. Growing numbers are applying ESG factors as part of their analysis process to identify material risks and growth opportunities.
But it’s not only in the business world that this is becoming a trend.
Consumers are starting to care more about how our behaviours affect the planet and society and are switching products they buy to those that are more environmentally friendly, as well as taking more time to consider our own impact on recycling, waste and pollution.
ESG is about sustainability and is increasingly guiding investors and dominating business strategies.
Ethical, clean and green is at the forefront for investors
Businesses that keep ethical, clean and green are increasingly more attractive to investors.
For Aberdeen, ESG is increasingly important because its economy is heavily reliant on oil and gas.
The sector remains the main provider of employment in the Granite City economy. An analysis by Scottish government has estimated that the energy sector as a whole represents around 36,000 of the Aberdeen region’s employment (11% of the total).
The energy sector also plays an outsize role in the gross value added (GVA) generated by Aberdeen, with GVA/per head of employment at £160,000 within the energy sector compared with £60,000 for life sciences and financial and business services.
Activist investors and ESG are driving change in companies within oil and gas.
Shell was recently ordered by a court in Hague to cut its net carbon emissions by 45%, compared to its 2019 level.
Meanwhile, investment giant Black Rock has backed activist investors looking to hasten BP’s already ambitious plans to achieve net zero across its operations by 2050 or sooner.
Aberdeen is not being left behind when it comes to looking towards a greener future.
Plans are underway for the city to become a climate positive city with the council setting an ambitious target of cutting carbon emissions to net zero by 2045.
The vision is for Aberdeen to be the destination for focused UK and international investment in alternative energy solutions and markets, particularly hydrogen, offshore wind and carbon capture and storage.
The breakfast event runs from 8-9am. To register for free, visit https://www.dctevents.com/event/pandjbreakfast-co-uk/
www.pandjbreakfast.co.uk
