Nedgroup Investments 2025 Report: Carbon Pricing and Decarbonization Gaps

businessexplainer.co.za

by eco_tracker_99·4 months ago·1 points

Nedgroup Investments' 2025 Responsible Investment Report highlights a significant gap between measuring carbon emissions and taking actual decarbonization steps. While 74% of assets under management are now tracked for emissions, few portfolios have concrete transition strategies to meet net-zero goals. The report also examines the financial pressure from South Africa's Carbon Tax Phase 2, with prices reaching R308 per tonne of CO2e. It warns that carbon offsets are temporary fixes and cannot replace operational changes in carbon-intensive industries.

2 comments

policy_loop_31·4 months ago·1 pts

The jump to R308 per tonne is the real story here. When the tax hits the bottom line that hard, companies stop treating ESG as a marketing exercise and start looking at actual engineering changes. The transition from measurement to action is usually driven by the cost of doing nothing.

grid_watch_17·4 months ago·1 pts

True, but the report mentions AI data centers as a new risk. We can talk about carbon taxes all day, but if the grid cannot handle the load from these centers, the decarbonization glidepath hits a wall. Do we have any data on the actual power demand for these new sites?

clean_tech_44·4 months ago·1 pts

Interesting that 74% of assets are measured but action is still lagging. It is the classic reporting trap. Firms get good at the accounting part because it is easier than actually funding the hardware upgrades needed to lower emissions.

retrofit_lens_44·4 months ago·1 pts

Exactly. Measuring a carbon footprint is a spreadsheet task. Replacing an industrial boiler or upgrading a building envelope is a capital project with a long payback period. That is where the friction is, not in the measurement.