Investors with $4 trillion in assets aim to tackle Asian companies on climate change targets

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FILE PHOTO: In the illustration in this photo taken on November 16, 2014, US dollar bills are flown near Seville, the capital of Andalusia. Reuters / Marcelo del Pozo / File photo

September 29, 2021

MELBOURNE (Reuters) – A group of six investors with a total of $4 trillion in assets under management, including Fidelity International, on Wednesday strengthened engagement with major Asian companies such as banks and energy producers to promote climate change. achieve your goals.

The initial participation in banks and coal-exposed utilities, a group of investors promoted by Singapore-based advisory Asia Research and Engagement (ARE), will focus on carbon exposure and coal, he said in a statement.

The move will help investors be more proactive in the areas of environmental, social and corporate (ESG) governance and shape their commitment to climate change to better manage customer risk. Measures related to ESG include support for active shareholder resolutions, voting for board members, and compensation.

At the Royal Dutch Shell’s (RDSa.L) annual shareholders meeting in May, nearly a third of shareholders upheld a proposal submitted by a group of activists, but was rejected by the board of directors. Reduces absolute emissions.

The six investors include BMO Global Asset Management EMEA, Fidelity International, Dutch pension fund PGGM, UK-based Municipal Pension Fund Forum (LAPFF), Aviva Investors and Legal and General Investment Management.

In a statement, Mirza Baig, Global Head, ESG Investments at Aviva Investors, said, “Progress in business practices and policies related to sustainability, including several Net Zero announcements over the past year. Was seen. ”

“Indeed, there is still a huge mismatch between where we are and what is needed to ensure that the goals of the Paris Agreement (on climate change goals) are achieved,” he says. I did “There is a huge opportunity for Asian companies to take the lead in tackling climate emergencies.”

The group has already started tying up with companies like China Huadian and Huadian. Huaneng and Huadian did not immediately respond to a request for comment.

Investor groups encourage banks and other companies to take concrete action, such as stopping lending to the most carbon-intensive fossil fuels, expanding fossil fuel lending and related infrastructure lending. ..

The measures also include encouraging Asian utilities to make plans to work in line with the goals of the Paris Agreement.

(Reporting by Melanie Burton of Melbourne and Chinese teams, edited by Kenneth Maxwell)

Investors with $4 trillion in assets aim to tackle Asian companies on climate change targets

Source Link Investors with $4 trillion in assets aim to tackle Asian companies on climate change targets

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