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with fossil firms better than divestment, say green chiefs
by cityam
CHRIS DORRELL
GREEN finance chiefs agreed engagement with polluting companies was better than divesting as they faced MPs’ questions yesterday on how the City of London was supporting the transition to net zero.
Speaking to the Environmental Audit Committee, head of climate change at HSBC Tim Lord said “our strategy is absolutely around engagement”.
“The objective here is real economy decarbonisation,” Lord said. While he noted the easiest way for an individual financial institution to decarbonise is to divest, “if emissions continue happening then there’s no benefit gained,” he said.
Investment funds have faced widespread pressure to divest from fossil fuels as part of the energy transition. However, many fund managers have argued engaging with companies is a more effective way of driving the energy transition.
BAR TO SUCCESS? Hotel Chocolat ‘cautious’ as falling revenue dampens Easter outlook
Royal London Profits Up 58 Per Cent Despite Challenging Market
Royal London yesterday said it had successfully boosted its profits by 58 per cent in 2022 in the face of “difficult market conditions”.
The insurer saw its operating profits jump to £210m as the adverse impacts on its asset management arm were offset by strong performances across the rest of its business.
Royal London, the UK’s largest mutual insurer, benefitted from high employment which saw its workplace pensions segment grow 29 per cent to hit £4.1bn. This offset a major drop in profits from Royal London’s asset management business. The value of its assets plummeted by £20.3bn.
Hiscox Chair To Step Down As Insurer Posts Stellar Results
Hiscox yesterday announced its longserving chairman Robert Childs (pictured) would be stepping down from his position this year after 37 years at the firm.
Hiscox chief executive Aki Hussain said Childs had been “instrumental in building Hiscox into a respected global brand and has navigated the business expertly through many insurance cycles”.
The news came as the insurer posted a strong set of results, posting its highest underwriting profits since 2015.
Profit from its insurance business surged 25 per cent, from $215.6m (£182m) in 2021 to $269.5m (£227.6m) in 2022, shrugging of the potential impacts from several extreme weather events and the war in Ukraine. ahead of Easter and Mother’s Day as consumers pull back spending.
Shares in the firm jumped five per cent after the insurer hiked its dividend from 34.5c to 36c.
Hiscox, however, saw its pre-tax profits drop 76.6 per cent to $44.7m, as rising interest rates caused the value of its bonds to fall.
Speaking to City A.M., Hussain said the firm was “very pleased with the results” and it is “now facing into the best pricing and underwriting conditions we’ve seen in 10 years”.
