Anti-ESG US fund pulls USD 13.3 bn investments from Blackrock: A lobbying campaign against ESG investments headed by the US’ Republican party has led to the withdrawal of USD 13.3 bn in investments from Blackrock on the back of its inclusion in a list of firms that “boycott fossil fuel companies,” according to The Financial Times. Texas Permanent School Fund recently withdrew USD 8.5 bn, making it the largest divestment by Republican-run pension funds.

Background: Blackrock got added to the country’s first list of financial firms deemed to boycott fossil fuel companies in 2022, the FT writes, however the investment firm has gained more than USD 355 bn in new net flows into its products since then.

The pressure is working: BlackRock has scaled back its commitment to investor group Climate Action 100+ — a coalition of investors that pushes companies to reduce their carbon emissions, according to the news outlet. BlackRock was not the only one that was impacted by lobbyists, as JP Morgan Asset Management, Bond manager PIMCO also left the coalition, and PFZW — one of two Dutch pension funds tapped back in 2022 to lead negotiations with Shell on behalf of Climate Action — also says it will step away from the talks.

REMEMBER- ESG divestments are nothing new: The narrative around ESG investing has become riddled with personal attacks and the problems “demonized,” BlackRock CEO Larry Fink said. BlackRock — which had some USD 8.59 tn in assets under management at the end of 2022 — has become a “political punching bag” for both right- and left-leaning forces when it comes to the issue of ESG investing. While some say that its policies negatively impact the fossil fuel industry to the detriment of the economy, others believe it isn't going far enough to address climate change.

Energy giants Sinpoec + TotalEnergies team up to produce SAF: China’s leading state oil firm Sinopec and French energy giant TotalEnergies have inked an agreement to establish a sustainable aviation fuel (SAF) facility with an annual production capacity of 230k tons at one of Sinopec's refineries in China, according to a statement. The plant will use local waste and residues from the circular economy, including used cooking oils and animal fats, as feedstock.

China’s Sungrow takes the lead: Chinese solar energy company Sungrow has overtaken China’s Longi Green Energy Technology’s position as the world’s most valuable solar energy company as solar equipment price drops narrow the margins for panel component manufacturers, Bloomberg reports. Longi’s market capitalization dropped to CNY 152.2 bn (USD 21 bn) on Friday, putting Sungrow ahead. Sungrow’s product mix — which includes sales of inverters, which convert solar electricity into the alternating current used in most power grids — helped the company achieve high volume growth and sustainable margins, Bloomberg writes.

Longi hit a slump while Sungrow is on the rise: Longi has seen a sharp decline in value, dropping more than 70% from its peak in 2021 due to rapid industry expansion outpacing demand, the news outlet explains. The Chinese firm has plans to let go of 30% of its 80k employees in efforts to cut costs and recover from a 44% drop in net income in 3Q 2023 amid overcapacity issues stemming from plummeting solar panel prices.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Renault plans to recycle batteries: French automaker Renault is in discussions with potential partners to establish an industrial-scale battery recycling initiative in Europe. The company's environmental unit aims to reuse lithium and other valuable metals extracted from used EV batteries. This comes as the EU is trying to bolster the supply chain for EV production. (Reuters)