Investors launch five-year global initiative to engage largest corporate greenhouse gas emitters to act on climate change

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Article
12 December 2017

Big investors press major companies to step up climate action

Author: Alister Doyle, Reuters

Two years to the day since 195 governments adopted the Paris climate agreement, investors including Pacific Investment Management Co, Amundi, Legal & General Investment Management, Northern Trust and Aegon said they aimed to work with the 100 biggest polluting companies to curb emissions under a five-year plan. That, they said, would be more effective than threatening to pull the plug on their investments in such companies... 

“We will be asking companies ... to curb emissions and bring them down in line with the Paris goals,” said Anne Simpson, investment director of sustainability at the California Public Employees’ Retirement System. That would mean roughly an 80 percent cut in greenhouse gas emissions by 2050, she told reporters on a teleconference, beyond the ambition of most companies... Under the investors’ plan, divestment would only be a last resort. If big emitters refuse to cooperate with them, shareholders could ratchet up pressure with public statements, resolutions and votes.

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Article
12 December 2017

Ceres Joins Forces with Investors and Partner Organizations Worldwide to Launch Climate Action 100+

Author: CERES

Ceres joined forces with investors and partner organizations worldwide today to help launch a new five-year global initiative led by investors to engage with the largest corporate greenhouse gas emitters ... to act on climate change. The effort is backed by more than 225 global investors... with USD $26.3trillion in assets under management... As part of the investor initiative, known as Climate Action 100+, a growing number of investors, including the largest U.S. pension funds, will engage with the largest emitters to improve governance on climate change, curb emissions and strengthen climate-related financial disclosures.

“We believe that engaging with the companies in which we invest to aggressively step up their actions on climate change is consistent with our fiduciary duty and will contribute to achieving the goals of the Paris Agreement,” said Betty T. Yee, a board member of California Public Employees' Retirement System (CalPERS). “It will require adjustments to business plans and practices consistent with keeping global temperature rise well below 2-degrees Celsius, and will require ambitious cuts in global greenhouse gas emissions — 80 percent by 2050.”

 ... Investors released the list of the first 100 companies that they plan to engage as part of the initiative. The list includes but is not limited to companies within the oil and gas, electric power and transportation sectors that have been identified as the world’s largest greenhouse gas emitters... Each year...Climate Action 100+ will produce a public annual report that will assess how the companies have responded to the collaborative engagement and help to set the participating investors’ engagement priorities for the year ahead. Companies may be removed from the list if they are considered to have made sufficient progress against the goals of the initiative.

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Article
12 December 2017

Climate Action 100+: World's top investors launch 'unprecedented' drive to push carbon intensive firms on climate action

Author: Michael Holder, businessGreen

The anniversary of finalisation of the Paris Agreement looks set to create even waves bigger than those from last month's fortnight-long UN climate change conference across the border in Bonn... Today, as many as 225 influential global investors with more than $26.3tr in assets under management pledged to engage with 100 corporates estimated to be responsible for around 85 per cent of total global greenhouse gas emissions, so as to step up their ambition on climate action... The new initiative is being coordinated by five partners: Asia Investor Group on Climate Change (AIGCC); Ceres; Investor Group on Climate Change (IGCC); Institutional Investors Group on Climate Change (IIGCC), and; Principles for Responsible Investment (PRI).

... The collaborative initiative - which boasts a raft of high profile investors such as Allianz, AXA, BNP Paribas, Church Commissioners for England, Deutsche Asset Management, Hermes, and others as members - developed the 100-strong target list using CDP data on companies' direct and indirect emissions associated with the use of their products... With trillions of dollars-worth of influence behind it, the five-year initiative will make it even harder for any major listed firm to ignore or downplay the climate-related risks they face... Each of the 225 investors signed up so far to the new initiative have agreed to initially engage directly with at least one company on the 100-strong list. 'Engagement', they say, largely means dialogue in and around company boardrooms, including investors potentially lodging proposals at board meetings aimed at improving governance, disclosure, and action on climate change.

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Article
12 December 2017

Global investors launch new initiative to drive action on climate change by world’s largest corporate greenhouse gas emitters

Author: Climate Action 100+

225 of the most influential global institutional investors with more than USD $26.3 trillion in assets under management today launched a new collaborative initiative to engage with the world’s largest corporate greenhouse gas emitters so these companies step up their actions on climate change... Investors who have signed on to the initiative will initially focus their engagement on 100 of the world’s largest corporate greenhouse gas emitters...

 Investors from around the world will ask companies to:

  1. Implement a strong governance framework which clearly articulates the board’s accountability and oversight of climate change risk.
  2. Take action to reduce greenhouse gas emissions across their value chain, consistent with the Paris Agreement’s goal of limiting global average temperature increase to well below 2 degrees Celsius above pre-industrial levels.
  3. Provide enhanced corporate disclosure in line with the final recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and sector-specific GIC Investor Expectations on Climate Change (when applicable) to enable investors to assess the robustness of companies’ business plans against a range of climate scenarios, including well below 2-degrees Celsius and improve investment decision-making.

Climate Action 100+ is designed to implement the investor commitment first set out in the Global Investor Statement on Climate Change in the months leading up to the adoption of the Paris Agreement... To participate, investors must be a member of a least one of the coordinating partner organisations, sign the Climate Action 100+ Sign-on Statement, and commit to pursuing at least one engagement each year with at least one company on the focus list.  

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