Good Business: Handed a lifeline

Inside: Investors push G-20 for climate action as wealthy nations keep funding coal. Walmart is now ethical enough for Norway's sovereign wealth fund. A bird started a California solar farm fire. Wayfair workers are planning a walkout over sales that allegedly furnish U.S. border camps. — Emily Chasan Sustainable Finance A group of 477 investors managing over $34 trillion combined, sent an open letter to world governments ahead of next week's G-20 summit in Japan urging "decisive" action on climate change, including phasing out fossil fuel subsidies and support for thermal coal. They said the world's current policies are putting the planet on track for a 3 degree Celsius rise in global temperatures by the end of the century. Even a 1.5 degree scenario is extremely undesirable, UN human rights expert Philip Alston warned this week. The climate crisis could undo 50 years of progress in fighting extreme poverty and create a "climate apartheid" scenario where only the wealthy can insulate themselves from its effects, he said in a report that will be presented to the UN Human Rights Council on Friday.  They have a point. G-20 governments, led by China and India, have handed the coal industry a $64 billion a year lifeline, writes Bloomberg's Mathew Carr.  Norway's $1 trillion sovereign wealth fund said its decision to divest oil explorers was about spreading out financial risk in the oil-rich nation. It's having a hard time convincing anyone the move has nothing to do with climate change. Separately, the fund revoked an ethical ban on investing in some major companies including Walmart, General Dynamics and Rio Tinto. Walmart was excluded from investment for over a decade, but Norway's ethics council said the retailer has made "positive developments" in its working conditions and supply chain. Legal & General Investment Management, which oversees about $1.3 trillion and is one of Exxon Mobil Corp.'s top 20 shareholders, began divesting some funds from the oil company this week, saying it isn't doing enough to address climate change.  Emerging markets could help the green bond market solve some of its supply issues. Chile sold 12-year green bonds this week at a record low yield after its first green bond sale earlier this month was hugely oversubscribed. Nigeria, which sold some green bonds last month, is also planning more issuance this year, betting it could help growth. Investors in Southeast Asia may be "underestimating" the risks of climate change, money managers said at the Bloomberg Asean Business Summit. Watch the session here.  Energy companies are making a really big mistake by "relying on some of their models that we actually won't put a price on carbon and that consumer demand isn't going to change," Generation Investment Management's Co-founder David Blood said at Bloomberg's Sustainable Business Summit in London last week. While some policy choices around the globe are spurring the energy transition, others are standing in the way the $22 billion investment manager said in a report this week. Watch Bloomberg's Sustainable Business Summit here.  The European Commission hosted a public hearing to debate how Europe's asset managers, with about $28 trillion under management, can steer capital flows toward sustainable investment, with the goal of achieving a climate-neutral economy by 2050. The Task Force on Climate-Related Financial Disclosures, led by Bloomberg LP founder Michael Bloomberg, now has almost 800 supporters, indicating that companies may be poised to get better at pricing the financial risks of climate change, writes Bloomberg Opinion's Nathaniel Bullard. In Brief Elon Musk says Tesla has enough orders to set a delivery record. A creditor group led by Pimco is seeking to scuttle California utility PG&E's $31 billion bankruptcy restructuring plan.  Encourage Capital raised $40 million for a fund aimed at boosting solar lending in India.  Vivint Solar arranged $100 million of tax-equity financing commitments for solar systems. Citigroup entered into an agreement with Japan's Keio University to promote ESG investments, according to a memo seen by Bloomberg. MIT scientist Andrew McAfee argues in a new book that doubling down on capitalism will speed the energy transition. Environment A fire at a Philadelphia refinery followed a trail of troubles for a 150-year-old site that emerged from bankruptcy just 10 months ago. The blast was so large and so hot that it was captured from space in satellite infrared images, the National Weather Service's Key West office wrote on Twitter. Britain's Parliament approved a law for net zero fossil fuel pollution by 2050. Britain has already slashed carbon dioxide output 44% since 1990 to the lowest levels since the 1890s.  Fossil fuel industry giants are quietly undermining global climate talks. The outsized presence of oil majors such as ExxonMobil and Royal Dutch Shell at global climate discussions is undermining scientific consensus and slowing policy progress, according to a report from The Climate Investigations Center. Plunging prices on power-storage systems have made residential batteries more common. Now power companies want to tap the Tesla batteries in your home.  A bird started the June 5 solar farm fire at a Clearway Energy site in California that knocked out 84% of its generating capacity. It may be safe for a bird to land on a wire, but not on two wires at once, writes Bloomberg's David Baker.  An Oregon cap-and-trade bill aimed at dramatically reducing greenhouse gas emissions died in the state's Senate as Republican lawmakers staged a walkout and even took to hiding to avoid creating a quorum that could pass the legislation.   Wild weather, floods and droughts are endangering hydropower -- the oldest form of clean power. But in the clearest sign yet that renewables are mainstream, clean energy surpassed coal in the U.S. power mix for the first time ever in April.  Sponsored by Walmart Walmart is increasing economic opportunity for associates through expanded benefits and training. The company's newly released Environmental, Social & Governance Report outlines how Walmart is driving change in the industry and creating shared value. Read more.   Social  Wayfair workers are planning to walk out in protest of the online furniture retailer's alleged business with contractors that are furnishing U.S. border camps for asylum seekers. U.S. House Democrats want investment firms to take cues from the National Football League's "Rooney rule" about how to boost diversity, writes Bloomberg Law's Andrea Vittorio. They've drafted legislation that would make banks and other companies hiring money management firms consider at least one firm that's owned by women, minorities, or veterans.  Gay executives told Bloomberg Businessweek about the importance of being out at work.  China halted imports of Canadian meat after an investigation found forged documents. The suspension could limit Canada's ability to fill a protein gap created by the spread of African swine fever in China, the world's top pork consumer.  Women from Oracle are fighting to get class-action status in a gender pay lawsuit. They are betting they could get more leverage if they can represent thousands of peers  in court, but previous attempts by women to get class action status in tech industry cases against Microsoft and Twitter have failed.  Governance Virtual shareholder meetings are still making investors unhappy. Shareholder gadfly John Chevedden called on General Motors investors to vote against the appointment of three directors in protest of the automaker's decision to ditch in-the-flesh gatherings for a virtual one this year. Swiss lawmakers voted in favor of a measure to increase the number of women in management of large, listed companies. The draft law includes a 30% guideline for women on corporate boards and 20% representation on executive committees. Note: Please send tips, suggestions and feedback to Emily Chasan at echasan1@bloomberg.net. New subscribers can sign up here. To see this on the web, click here. FOLLOW US SEND TO A FRIEND You received this message because you are subscribed to Bloomberg's Good Business newsletter. Unsubscribe | Bloomberg.com | Contact Us Bloomberg L.P. 731 Lexington, New York, NY, 10022