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Is green financing here to stay or is it a PR fad on ESG - Insight from WSJ and Economist news.

The news

WSJ 

Green is in the black. Investors are putting an eye-popping $3 billion a day into green funds. Driven by rising valuations for electric-vehicle companies and adjacent start-ups, banks and investors now believe that they can make money backing green investments. Assets in investment funds focused partly on the environment have more than tripled over the past three years, reaching almost $2 trillion globally in the first quarter. 

https://www.wsj.com/articles/green-finance-goes-mainstream-lining-up-trillions-behind-global-energy-transition-11621656039?st=l369yh44pzf9yl8&reflink=article_email_share&cid=other-eml-onp-mip-mck&hlkid=b67774aa732349a58d989fe7e3c9d03a&hctky=9431270&hdpid=4fdab845-9904-4476-b0e7-14337e26f163

Economist 

Is it all just spin? There are some who view the green-finance gold rush with skepticism, viewing the recent embrace of environmental, social, and governance (ESG) funds as a PR ploy. But ESG-minded leaders argue that the only way to halt global warming is to engage—and invest.

https://www.economist.com/finance-and-economics/2021/03/27/the-impact-of-green-investors?cid=other-eml-onp-mip-mck&hlkid=d23470e925e24397b8d6674dc047260c&hctky=9431270&hdpid=4fdab845-9904-4476-b0e7-14337e26f163

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Why it matters. Reducing greenhouse-gas emissions and achieving a net-zero transition will have far-reaching implications for businesses. Companies with carbon-intensive product portfolios and low levels of technological sophistication will end up paying the most. The distance between low-carbon leaders and high-carbon laggards will widen, and those in the latter group may find they no longer have a viable business.

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Climate action on the agenda. In a world where many of the rules of competition are changing, observing is no longer a tenable strategy. If your company doesn’t have a plan for competing and winning in a net-zero economy, it’s time to make one. Here are some ideas for what executives can do: 

Mckinsey article on https://www.mckinsey.com/business-functions/sustainability/our-insights/sustainability-blog/time-is-running-out-for-business-leaders-net-zero-strategy?cid=other-eml-onp-mip-mck&hlkid=6c93a6bc316d475e8964ec891bc473f4&hctky=9431270&hdpid=4fdab845-9904-4476-b0e7-14337e26f163

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