In May, a Dutch court ruled the British-Dutch energy giant Shell must increase its emissions reduction target to 45 percent by 2030. The ruling applies only to the company’s business in the Netherlands, and Shell intends to appeal. Regardless of the outcome though, it is clear companies are increasingly under pressure from the public and regulators to both disclose and improve environment, social, and governance (ESG) metrics.
Such regulations in Europe and the United States will nudge investors toward low emissions projects. All this capital has to be put somewhere, and Latin America and other emerging markets are well positioned to become big recipients of these increased climate-focused flows.
