Weekly Dose of ESG — Humanity First

Humanity First

Friday, 04th March 2022

What is going on?

Last week, Russia launched an unjustified war on its neighbour Ukraine. We are watching the situation with a mixture of anger and despair as the extent of human suffering of the civilian population caused by the Russian aggression grows. The exodus of the Ukrainian population and the resulting humanitarian crisis is an event Europe has not experienced in decades.

What are investors doing?

The invasion brought together the global community to condemn Russia’s aggression calling it “a serious violation of the international order.” Financial institutions are quickly dropping Russian investments from their portfolios and cutting business ties with Russia. Norwegian sovereign fund will divest its approximately $2.83 billion investment in Russian assets, which included companies like Sberbank, Lukoil or Gazprom. BP is seeking to divest from its 20% stake at Russian state-owned enterprise Rosneft and Exxon is ceasing major oil and gas projects in Russia. Countries are tightening financial restrictions to avoid direct military conflict, for example by disconnecting Russian banks from SWIFT — the financial messaging infrastructure. However, leaving some banks connected due to the energy pickle Europe found itself in through dependency on Russian fossil fuels (more on this in our next newsletter…).

Let’s not pretend that all funds suddenly found their moral compass. There is little appetite to trade with Russia right now given the uncertainty, sanctions, toxic reputation, and decrease in Russian companies’ value. Nevertheless, capital is a powerful tool, and the investment community plays a vital role in this war.

How can you help?

If you are looking to provide a meaningful assistance to Ukraine please have a look on this website, which lists where to donate, join protests, sign petition or send humanitarian supplies. Thank you!

Stay well and safe!

Paula & Philipp