Investors launch new initiative targeting top 100 emitters

Some of the world’s most influential institutional investors have launched a five-year, investor-led initiative that seeks to curb emissions from the world’s 100 largest corporate greenhouse gas emitters.

The Climate Action 100+ initiative is supported by 225 investors from around the world with more than $26.3 trillion in assets under management who want to protect the value of their investments from the impacts of climate change.

The participants in the new initiative want to engage the world’s largest 100 corporate greenhouse gas emitters “to curb emissions across their value chains, strengthen climate-related financial disclosures, and improve the governance of climate-related risks that may affect companies,” according to Ethos Foundation, one of the founding signatories of the new initiative.

The initial list of companies they will target includes but is not limited to those within the oil and gas, electric power and transportation sectors.

Anne Simpson, Investment Director of Sustainability at CalPERS, said in a statement: “Moving 100 of the world’s largest corporate greenhouse gas emitters to align their business plans with the goals of the Paris Agreement will have considerable ripple effects. Our collaborative engagements with the largest emitters will spur actions across all sectors as companies work to avoid being vulnerable to climate risk and left behind.”

To achieve this, investors will call on the most greenhouse gas-intensive companies in their portfolios to implement a strong governance framework that clearly articulates the board’s accountability and oversight of climate change risks and opportunities.

They will also urge companies to take action to reduce greenhouse gas emissions across the value chain consistent with the Paris Agreement’s goal of limiting global average temperature increase to well below 2 degrees Celsius compared to pre-industrial levels.

Finally, investors will encourage companies to provide enhanced corporate disclosure in line with the final recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). This will enable investors to assess the robustness of companies’ business plans against a range of climate scenarios.

Laetitia Tankwe, Responsible Investment Adviser to Ircantec President Jean-Pierre Costes, Groupe Caisse des dépôts, said: “Many long-term investors made a clear commitment two years ago to work with companies to ensure that they both curb emissions and do more to disclose the risks and maximise the opportunities presented by climate change. Today global investors are following through to put in place a global strategy to drive greater engagement that will deliver on this commitment.”

 

Image credit: Ian Britton via Flickr

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