Finance

Investors with $4 trln assets aim to tackle Asian firms on climate change goals

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U.S. greenback payments blow close to the Andalusian capital of Seville on this photograph illustration taken on November 16, 2014. REUTERS/Marcelo Del Pozo/File Picture

MELBOURNE, Sept 29 (Reuters) – A gaggle of six buyers with a mixed $4 trillion of property below administration, together with Constancy Worldwide, stated on Wednesday it goals to step up engagement with huge Asian corporations like banks and power producers to make sure they’ve a street map to satisfy local weather change targets.

Preliminary engagement will deal with carbon threat and coal at banks and coal-exposed energy corporations, the group of buyers, facilitated by Singapore-based advisor Asia Analysis & Engagement (ARE), stated in an announcement.

The transfer comes as buyers change into extra energetic within the subject of environmental, social and company (ESG) governance, serving to to form companies’ local weather commitments to higher handle that threat for his or her shoppers. ESG-related steps they’ve taken embrace backing activist shareholder resolutions and voting on board members and remuneration.

At Royal Dutch Shell (RDSa.L)’s annual shareholder assembly in Might, almost a 3rd of shareholders backed a decision filed by an activist group, however rejected by the board, that wishes the corporate to set short- and medium-term targets to chop absolute emissions.

The six buyers embrace BMO International Asset Administration EMEA, Constancy Worldwide, Dutch pension fund PGGM, Britain-based Native Authority Pension Fund Discussion board (LAPFF), Aviva Buyers and Authorized & Common Funding Administration.

“Over the previous yr we’ve seen encouraging developments in sustainability-related enterprise practices and insurance policies, resembling a raft of web zero bulletins,” Mirza Baig, international head of ESG investments at Aviva Buyers, stated within the assertion.

“In actuality, there may be nonetheless a stark mismatch between the place we’re at present and what’s required to make sure that the targets of the Paris Settlement (on local weather change targets) are met,” he stated. “There’s a enormous alternative for Asian corporations to take the lead in tackling the local weather emergency.”

The group has already begun engagement with corporations together with China energy companies Huaneng and Huadian . Huaneng and Huadian didn’t instantly reply to requests for remark.

The investor group will encourage corporations resembling banks to decide to concrete actions like exiting from financing probably the most carbon-intensive fossil fuels, and stopping financing fossil-fuel growth and associated infrastructure.

Measures would additionally embrace encouraging Asian energy utilities to set out plans to deliver their companies consistent with Paris Settlement targets.

Reporting by Melanie Burton in Melbourne and China crew; Enhancing by Kenneth Maxwell

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