News and Events

Climate Action 100+ investors seek net zero business strategies through company engagement

  • US$35 trillion Climate Action 100+ publishes first initiative progress report
  • Breakthrough commitments have been achieved, yet step change in broader corporate response to climate change is necessary given $20 trillion systemic risk to global economy1

02 October 2019 — Climate Action 100+ brings together more than 370 global investors with over $35 trillion in assets under management, in seeking to ensure some of the world’s largest companies take necessary action on climate change. The 161 ‘focus companies’ engaged through the initiative are collectively responsible for over two thirds of global industrial GHG emissions and represent a combined market capitalisation in excess of $8 trillion2.

Supported by Climate Action 100+ investor engagement, a range of breakthrough net zero emission commitments are now in place. Significant progress has been seen across a range of industries, many of which are among the most challenging to decarbonise. Examples of focus companies making substantial net zero commitments over just the past seven months alone include; HeidelbergCement, Duke Energy, Nestle, Daimler, VW, Thyssenkrupp, ArcelorMittal, BHP Billiton, Centrica and Saint-Gobain, among others3.

Despite these examples of first-wave leadership, analysis shows a significant step change is still required from the majority of focus companies in addressing climate change as a strategic business risk.

“We are now at a tipping point. A significant number of companies have made bold commitments to achieve net zero emissions, with others increasingly following suit,” explains Stephanie Maier, Director of Responsible Investment, HSBC Global Asset Management and steering committee member, Climate Action 100+. “Given the urgency of the situation, the role of investor engagement is critical in ensuring we build on this momentum.”

Analysis in the report demonstrates across the 161 focus companies:

  • 70% have set long-term emissions reduction targets.
  • 9% have emissions targets that are in line with (or go beyond) the minimum goal of the Paris Agreement to keep the rise in global temperature to below 2°C, highlighting a crucial ambition gap to be addressed4.
  • 8% of companies have policies in place to ensure their lobbying activity is aligned with necessary action on climate change (leaving scope for obstructive, negative or evasive lobbying).
  • 40% undertake and disclose climate scenario analysis, and 30% of companies have formally supported recommendations of the Task force on climate-related Financial Disclosures.
  • 77% have defined board level responsibility for climate change.

This and other data in the report is provided by leading climate research partners to the initiative, and provides an initial baseline of progress against the core goals of the initiative across relevant sectors. The research partners include Carbon Tracker Initiative, CDP, InfluenceMap, Transition Pathway Initiative and 2° Investing Initiative, with additional data provided by the Science Based Targets Initiative.

The need to ensure a smooth and orderly transition to a decarbonised global economy has never been clearer, while the latest science shows the scale and pace of change must be rapid. Given the size of their collective GHG emissions as ‘systemically important emitters’, a more ambitious response by the Climate Action 100+ focus companies is pivotal – on both a company and global level – in ensuring the transition is realised in the timeframe required.

“Investor engagement through Climate Action 100+ is playing a major role in changing corporate attitudes on climate change and we have seen some very significant commitments from companies,” adds Stephanie Pfeifer, CEO, Institutional Investors Group on Climate Change and steering committee member, Climate Action 100+. “Yet we have much more to do before business is on track to meet the goals of the Paris Agreement. We must now build on the momentum achieved to date if we are to succeed in addressing the climate crisis and safeguarding investments on which the futures of millions of pensioners depend.” 

Issued by the Climate Action 100+ steering committee, the report also contextualises the contribution investor engagement has made to progress achieved to date. Highlights and broader examples of impact include:

  • Securing four Climate Action 100+ investor led agreements with global companies – Shell, Glencore, BP and Equinor – each covering a broad range of commitments.
  • Breaking new ground in defining investor expectations on corporate lobbying activity, to ensure activity is aligned with and supports delivery of the Paris Agreement on climate change.  11 commitments have been secured to date from companies in line with investor expectations, to review and act on alignment of lobbying activity, inclusive of trade bodies5.
  • Mainstreaming the expectation that companies need to take responsibility for and act on emissions across their value chain (scope 3 emissions). 
  • Defining new approaches to alignment of emissions in line with the goals of the Paris Agreement, through both target-setting and future capital expenditure.

“Climate change is a financial risk of unprecedented scale and impact,” said Emma Herd, Chief Executive Officer, Investor Group on Climate Change (IGCC) and steering committee member, Climate Action 100+. “Through Climate Action 100+ investors are telling companies it’s time to get serious about climate change. While more work is clearly needed to really drive company action, this report shows that engagement is having an impact and companies must listen to their shareholders.” 

The initiative has also achieved significant progress in ‘mainstreaming’ shareholder engagement by investors globally. Highlights include:

  • Achieving over 65% growth in investor participation in the initiative since launch, with an additional $9 trillion in assets under management added in the process6
  • Setting new records for investor support of climate change shareholder resolutions. This includes the largest ever co-filing backing secured for a climate change shareholder resolution (from investors owning equivalent to 10% of BP in the form of a $12 billion stake in the company). Over 99% of shareholders then voted in support of the resolution.
  • Setting a new precedent on the scale, growth and nature of collaborative investor engagement across Asia. 
  • Building further capacity and strengthening investor engagement globally.

Numerous case study examples included in the report highlight the significance of shareholder engagement as a key factor in contributing to progress by companies, in line with goals of the initiative.    

The global role and impact of Climate Action 100+ has been especially transformative. This has been achieved in large part through the collaboration of the five regional partner organisations with a key role in driving the initiative forward. They are: the 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).

Investors are nonetheless cognisant of the significant progress that still needs to be seen from focus companies. Priorities for engagement to help build on existing momentum include:

  • Lobbying reform: securing more disclosure commitments on climate lobbying and expecting companies to demonstrate support for critical climate policy.
  • Net zero goals or targets: expecting companies to articulate how their businesses are compatible with the carbon neutral world envisaged by the Paris Agreement. Building on existing engagement, this includes long-term goals to achieve carbon neutrality mid-century, supported by medium- or short-term targets and appropriate business plans.
  • TCFD implementation: looking for all of the 161 companies to produce credible TCFD reporting and climate scenario analysis that tests the financial resilience of the business. 

The focus by investors on net zero emission targets is in line with the latest science in meeting the Paris Agreement’s preferred target to keep global warming below 1.5°C7. This builds on existing engagement through the initiative and will increasingly be a priority in dialogue with companies8

Publication of the progress report follows a key United Nation’s climate conference in New York last week, in which progress towards a net zero emissions future was further strengthened. Responding to the science, 65 countries and the EU have now announced efforts to achieve net zero emissions by 2050 or sooner, effectively meaning economy wide decarbonisation9

Cutting carbon in half by 2030 and reaching net zero carbon before 2050 will help avoid the most catastrophic impacts of climate change on our economy, communities and environment,” said Mindy Lubber, CEO and President of Ceres and steering committee member, Climate Action 100+. “In the first two years of Climate Action 100+, we have already seen progress towards this goal. But time is running out. We need more investors to join us in our efforts and more companies to act on the global climate crisis more quickly, boldly and broadly than ever before.” 

Other members of the Climate Action 100+ steering committee, commenting on report findings and progress of the initiative, explain:

“Climate Action 100+ is the most ambitious investor engagement initiative launched to date – and rightly so given the scale and urgency of the challenge we face,” adds Anne Simpson, CalPERS Director of Board Governance and Strategy. “This first progress report shows we have begun to tackle those challenges. The financial markets are putting the wind in our sails, but we will need to navigate efforts to achieve net zero by 2050. There is no room for complacency.”

“The future of the climate and the future of investing are completely intertwined,” adds Emily Chew, Global Head of ESG Research and Integration, Manulife Investment Management. “Ensuring corporate strategy of the companies in which we invest is aligned with our interest in a safe climate helps protect the long-term value of portfolios across all sectors and asset classes.”  

“We have already shown the benefits collaboration with investors offers,” explains Laetitia Tankwe, Adviser to Ircantec President Jean-Pierre Costes, Groupe Caisse des dépôts. “Strengthening corporate governance, bringing emissions in line with the goals of the Paris Agreement and improving climate-related financial disclosures, all help build stronger more resilient companies.” 

“Given climate change threatens the ability of long-term investors to generate investment value and meet their investment objectives over time, the importance of the Climate Action 100+ initiative cannot be underestimated,” sets out Andrew Gray, Director – ESG and Stewardship, AustralianSuper. “Its real success has been in the way it has helped shape corporate priorities and put climate change at the centre of conversations on business strategy through engagement with such a large group of investors.” 

“As we reflect on the meaningful progress of Climate Action 100+, we also look forward to even greater engagement and action from corporations to reduce their greenhouse gas emissions,” explains Fiona Reynolds, CEO, Principles for Responsible Investment. “It’s time for the decade of action on climate broadly, and further collective engagement with the worst emitters to achieve net zero commitments is critical.” 

This initiative is a vitally important tool to collectively reiterate to companies that investors, as part owners of their investee companies, want them to succeed now and in the long-term,” adds Rebecca Mikula-Wright, Director, Asia Investor Group on Climate Change (AIGCC). “However, with climate impacts affecting companies and their supply chains now, and increasingly in the future, investors need companies to articulate how they are adapting their strategies to successfully transition to net zero by 2050.”

Media Contact:
news@climateaction100.org or Tom Fern (+44 (0) 7867 360 273) Sara (+1 617-247-0700 ext. 172).

About Climate Action 100+: 
Climate Action 100+ is a five-year investor initiative to ensure the world’s largest corporate greenhouse gas emitters take necessary action on climate change. More than 370 investors with over $35 trillion in assets collectively under management are engaging companies on improving governance, curbing emissions and strengthening climate-related financial disclosures. The companies include 100 ‘systemically important emitters’, accounting for two-thirds of annual global industrial emissions, alongside more than 60 others with significant opportunity to drive the clean energy transition.  

Launched in December 2017, Climate Action 100+ is coordinated by five partner organisations: Asia Investor Group on Climate Change (AIGCC); CeresInvestor Group on Climate Change (IGCC); Institutional Investors Group on Climate Change (IIGCC) and Principles for Responsible Investment (PRI). These organisations, along with five investor representatives from AustralianSuper, California Public Employees’ Retirement System (CalPERS), HSBC Global Asset Management, Ircantec and Manulife Asset Management, form the global Steering Committee for the initiative. For more information, visit: www.ClimateAction100.org and follow: @ActOnClimate100.  

– ENDS –

Notes to Editor 

Link to report to be added to reporting: https://climateaction100.wordpress.com/progress-report

Download the press statement: https://climateaction100.files.wordpress.com/2019/10/progressreportnotice.pdf 

As the first progress report issued, the assessment approach and framework utilised by Climate Action 100+ will continue to evolve and be further refined. The report findings and more in-depth company specific analysis will also be used by Climate Action 100+ investors to inform engagement with focus companies.

  1. 34 leading central banks have highlighted that global assets in the order of $20 trillion are at risk of stranding through a failure to pre-empt and act on the necessary transition to a low-carbon global economy (see here). 
  2. See report or here for a full list of focus companies.
  3. With many commitments made in a short timeframe, this points to a growing comprehension of the significant change required and a display of corporate leadership for other companies to follow. The pace of progress with recent announcements means there is a lag in how these commitments are factored into analysis within the report. 
  4. Some 39% of the 161 company focus list were not able to be assessed on alignment with the goals of the Paris Agreement. 
  5. 11 commitments to produce reviews of lobbying activity from companies across industrials, mining, oil and gas: namely Anglo American, ArcelorMittal, BASF, BHP, BP, Equinor, Glencore, HeidelbergCement, Rio Tinto, RWE, Shell. A similar programme will operate in the United States to secure commitments (see here).
  6. Individual investor signatories have grown from 225 (representing $26 trillion in AUM) at launch to over 370 today.
  7. IPCC special report on the impacts of global warming of 1.5 °C (see here).
  8. While expectations will be tailored to sector and company specific engagement strategies, commitments would be expected to cover both company operational and value chain (scope 3 emissions).
  9. Many countries, with the addition of the EU, are in the process of developing, setting or have already passed net zero emissions target legislation. This includes the UK and France as leading G7 global economies with targets already in law. See here for source on 65 countries referenced. 

Investors rebuke Exxon over failure to grapple with climate-related risks

Proposal to separate board chair and CEO reaches 41 percent

29 May 2019—Forty one percent of investors voted to separate ExxonMobil’s board chair from its CEO at the company’s annual general meeting today, sending “a strong signal that investors are dissatisfied with the board’s approach, including its approach to managing climate risk,” said Andrew Logan, senior director of oil and gas at the sustainability nonprofit organization Ceres.

Logan added that the company should heed this strong signal through “real engagement with investors, independent oversight, and meaningful governance on climate change.”

The proposal, filed by the Kestrel Foundation, became the main vehicle by which investors could express their concern about Exxon’s climate strategy after the company successfully petitioned the U.S. Securities and Exchange Commission (SEC) to keep a different proposal that called for the company to set greenhouse gas emissions reduction goals from going to a vote. The co-filers of that proposal, Church of England and New York State Comptroller Thomas DiNapoli, publicly declared their support for the proposal to separate the board chair and the CEO and vowed to vote against Exxon’s entire board.

“This has been a very difficult Annual General Meeting for Exxon and a warning shot to management,” said Edward Mason, Head of Responsible Investment at the Church of England, who delivered remarks at Exxon’s annual general meeting. “The result of Exxon refusing to put our shareholder proposal to the vote is that investors have simply expressed their frustration at Exxon’s governance on other ballot items. Today’s increased support for the separation of chair and chief executive, in the face of board opposition, is a measure of investors’ profound dissatisfaction. We now expect the company immediately to institute the intensive, meaningful engagement on climate strategy with Climate Action 100+ investors that it has delayed for too long.”

“Shareholders sent a strong message that they are dissatisfied with Exxon’s poor governance, which is preventing the company from adequately addressing climate risk,” said New York State Comptroller Thomas P. DiNapoli. “Exxon would ignore this level of support for an independent board chair at its own risk.”

The vote at Exxon comes as investor concern over climate risks at oil and gas companies is growing, with significant results at Royal Dutch Shell and BP just last week.

“Investors have come to understand the severity of climate risk for the oil and gas sector,” Logan added. “While peer companies such as Shell, BP, Equinor and Occidental Petroleum have taken steps to respond to investor concerns on climate, Exxon has done the exact opposite. It’s not hard to see why investors would vote for a change in the company’s governing body when Exxon’s board has refused to meaningfully engage on such a serious issue. Left with few other avenues through which to voice their displeasure and concern, they’ve sent a very strong — and very public — rebuke to Exxon, not to mention a warning shot to other fossil fuel companies that fail to address climate-related risks.”

Media Contacts:
Sara Sciammacco, Ceres
sciammacco@ceres.org/Tel: 617-247-0700 ext. 172

About Ceres: Ceres is a sustainability nonprofit organization working with the most influential investors and companies to build leadership and drive solutions throughout the economy. For more information, visit ceres.org and follow @CeresNews.

About Climate Action 100+: Climate Action 100+ is an investor initiative to ensure the world’s largest corporate greenhouse gas emitters take necessary action on climate change. More than 320 investors with more than $33 trillion in assets collectively under management are engaging companies on improving governance, curbing emissions and strengthening climate-related financial disclosures. The companies include 100 ‘systemically important emitters’, accounting for two-thirds of annual global industrial emissions, alongside more than 60 others with significant opportunity to drive the clean energy transition.   

Launched in December 2017, Climate Action 100+ is coordinated by five partner organisations: Asia Investor Group on Climate Change (AIGCC); Ceres (Ceres); Investor Group on Climate Change (IGCC); Institutional Investors Group on Climate Change (IIGCC) and Principles for Responsible Investment (PRI). These organisations, along with five investor representatives from AustralianSuper, California Public Employees’ Retirement System (CalPERS), HSBC Global Asset Management, Ircantec and Manulife Asset Management, form the global Steering Committee for the initiative. Follow us on Twitter: @ActOnClimate100.

Climate change resolution at BP AGM from Climate Action 100+ investors passes with over 99% shareholder support

21 May 2019—At BP’s annual general meeting (AGM) in Aberdeen today, a climate change shareholder resolution has been passed with the support of 99.14% shareholders. The binding resolution (number 22), filed by investors acting as part of Climate Action 100+, means the company will now need to set out a business strategy consistent with the goals of the Paris Agreement on climate change. The resolution had received the support of the BP board.

Stephanie Pfeifer, a member of the global Climate Action 100+ Steering Committee and CEO, Institutional Investors Group on Climate Change (IIGCC), explains: “The scale of support for the Climate Action 100+ resolution sends a clear message that investors expect companies to act on climate change. With the resolution passed, BP is now legally bound to set out a strategy to ensure it is aligned with the goals of the Paris Agreement. The company believe they already meet this objective, so it’s now down to them to show this is the case.

“Investors will reserve judgement and expect BP’s response to be sufficiently robust. They will pay close attention to how it addresses emissions across its full value chain and expect to see clear evidence that any future material capex investment is consistent with the goals of the Paris Agreement.

“Building on positive engagement with BP to date, investors will also look for progress on addressing climate change in other areas. As was made clear at the company’s AGM, this includes a commitment to ensure BP’s lobbying activity supports the Paris goals.”

The scale of support for the resolution received reflects the growing importance investors place on climate change as a matter of corporate strategy and corporate governance. Investors owning just under 10% of the company’s voting shares tabled, or ‘co-filed’ the resolution. This was an unprecedented level of investor backing secured for the resolution even before the AGM vote.

– Ends –

Notes to editor:

The resolution was co-filed by 58 investors, including a third of BP’s top 20 investors. See here for the related announcement and here for a full list of the investors that co-filed the resolution. Also see here for a version of the resolution and supporting statement.

Media contacts:

Climate Action 100+ (via IIGCC as a coordinating partner organisation): tfern@IIGCC.org & +44 (0)7867 360 273.

About Climate Action 100+: Climate Action 100+ is an investor initiative to ensure the world’s largest corporate greenhouse gas emitters take necessary action on climate change. More than 320 investors with more than $33 trillion in assets collectively under management are engaging companies on improving governance, curbing emissions and strengthening climate-related financial disclosures. The companies include 100 ‘systemically important emitters’, accounting for two-thirds of annual global industrial emissions, alongside more than 60 others with significant opportunity to drive the clean energy transition.   

Launched in December 2017, Climate Action 100+ is coordinated by five partner organisations: Asia Investor Group on Climate Change (AIGCC); Ceres (Ceres); Investor Group on Climate Change (IGCC); Institutional Investors Group on Climate Change (IIGCC) and Principles for Responsible Investment (PRI). These organisations, along with five investor representatives from AustralianSuper, California Public Employees’ Retirement System (CalPERS), HSBC Global Asset Management, Ircantec and Manulife Asset Management, form the global Steering Committee for the initiative. Follow us on Twitter: @ActOnClimate100.

About IIGCC: The Institutional Investors Group on Climate Change (IIGCC) is the European forum for investor collaboration on climate change and the voice of investors taking action for a prosperous, low-carbon future. IIGCC has 170 members, mainly pension funds and asset managers, across 11 countries, with over €23 trillion assets under management. IIGCC’s mission is to mobilise capital for the low-carbon transition by collaborating with business, policymakers and fellow investors.

AGM resolution for BP to address climate change risks receives unprecedented investor backing

14 May 2019—Global investors are calling on BP to set out a business strategy that is consistent with the goals of the Paris Agreement on climate change. A shareholder resolution ‘co-filed’ ahead of the company’s annual general meeting (AGM) – requiring the company to meet their request – has received an unprecedented level of support1.

The resolution has been initiated, or ‘co-filed’, by investors acting as part of Climate Action 100+. This is an investor initiative to ensure the world’s largest corporate greenhouse gas emitters take necessary action on climate change.

The 58 investors co-filing own just under 10% of the company’s voting shares between them – equivalent to a £10 billion holding in the company2. This group includes six of the UK’s 10 largest fund managers3. These same investors in turn account for a third of BP’s 20 largest shareholders globally4.

This marks a new global best for the level of support a shareholder resolution on climate change has received. Investor backing secured so far is already broadly double that of the previous best achieved5.

BP’s board are supporting the resolution at its AGM this year, as the outcome of constructive engagement with investors as part of Climate Action 100+. Globally the initiative involves over 300 investors with $33 trillion in assets, with investor engagement across Europe delivered with the support of the Institutional Investors Group on Climate Change (IIGCC).

It is also the first time that a number of leading investors have decided to initiate a shareholder resolution by co-filing. This includes some of the UK’s largest asset managers, such as UBS Asset Management with $781 billion in assets under management.

Support for the resolution reflects how investors are increasingly embracing an active approach to stewardship of assets they own or manage. This is facilitated through their involvement in Climate Action 100+, which sees investors engage with 161 companies, responsible for well over two-thirds of annual global industrial greenhouse gas emissions.

“The scale of investor support for the BP resolution is truly unprecedented. It is the first   time globally that shareholders holding a 10 percent stake in a major listed company have filed a resolution on climate change,” explains Stephanie Pfeifer, a member of the global Climate Action 100+ Steering Committee and CEO, Institutional Investors Group on Climate Change (IIGCC). “This is further evidence that shareholder engagement is driving change across the corporate sector. Investors will continue to build on this momentum and expect companies to embrace the opportunity this provides to strengthen their business .”

The resolution, to be voted on at BP’s AGM on 21 May, requires the company to set out a business strategy which it considers, in good faith, to be consistent with the goals of the Paris Agreement on climate change.

Necessitating a high-level of ambition from the company, the investors are clear on the need for BP to act, as containing temperature increases to well-below 2°C as set out in the Paris Agreement requires a considerable decrease in demand for fossil fuels, and investment in their production.

The resolution then defines a number of robust reporting requirements, including:

  • How the company evaluates the consistency of each new material capital investment with the goals of the Paris
  • Related metrics and targets, consistent with the goals of the Paris Agreement, together with the anticipated levels of investment in oil and gas and other energy technologies; targets to promote operational greenhouse gas reductions; the estimated carbon intensity of energy products; and the linkage of the company’s targets with executive

Investors leading the Climate Action 100+ dialogue with BP commented on significance of the resolution:

“Investors want energy companies to continue being successful as the world moves to a low-carbon economy. This resolution calls on BP to  provide more clarity about  how its  plans are consistent with the goals of the Paris Agreement on climate change,” adds Sacha Sadan, Director of Corporate Governance, Legal and General Investment Management. The largest energy companies have a leading role to play, and we look forward to working with BP and others to develop more detailed disclosures in this area.”

“The scientific consensus is crystal clear on the need for far-reaching action by corporates, with the next decade critical in limiting global warming to 1.5°C. Investors have a responsibility to hold companies to account and to ensure they consider their alignment  with the Paris Agreement,” explains  Steve Waygood, Chief Responsible Investment  Officer, Aviva Investors. “BP’s support for this resolution demonstrates how the investment industry can collaborate to instigate meaningful change. We hope that this first, but important, step represents a shift by the oil and gas sector in tackling today’s climate emergency head-on.”

Bruce Duguid, Head of Stewardship, Hermes EOS, adds: “This resolution is carefully designed to have the high ambition of a strategy consistent with the goals of the Paris Agreement, combined with robust reporting requirements by which to demonstrate this, while leaving flexibility for the company to set the precise strategy.” 

The resolution itself and accompanying supporting statement from investors can be seen here. Subject to approval at its AGM, the responsibility will be on BP to provide additional corporate reporting for the year ending 2019 as directed by the resolution.

While it will be for BP to set out the process and methodology, investors will be keen to ensure they are sufficiently robust and reliable.

A complimentary IIGCC initiative will set out broader investor expectations on climate change for the oil and gas sector. With publication expected in coming months, future dialogue with BP will cover implementation of related actions, in line with standard expectations of all oil and gas companies. IIGCC is one of five partner organisations that coordinate Climate Action 100+ globally.

– Ends –

Media contacts:

Tom Fern, Climate Action 100+ (via IIGCC as a coordinating partner organisation)
tfern@IIGCC.org/Tel: +44 (0) 7867 360 273

Victoria Howley, Media Relations  Manager, Aviva Investors
victoria.howley@avivainvestors.com/Tel: +44(0)207 809 8791

Hermes EOS (as lead coordinator)
press@hermes-investment.com/Tel: +44 (0)20 7680 2218

Elizabeth Bickham, Strategic Head of PR, LGIM
Elizabeth.Bickham@lgim.com/Tel: +44 (0)20 3124 2862

Andrew Gates, PR Manager, LGIM
Andrew.Gates@lgim.com/Tel: +44 (0)20 31244363.

Notes to Editors:

  1. Full detail on investors backing the resolution can be found in the accompanying ‘co-filing and declaration summary grid’.
  2. See document referenced above for list of relevant investors. Exact holding of the company is 9.6%. Equivalent value calculated as a share of total market capitalisation (£108 bn) as of 14th.
  3. The investors in question are: Aviva Investors, HSBC Global Asset Management, Legal & General Investment Management, M&G Investments, Royal London Asset Management and Schroders.
  4. Investors referenced as above, plus UBS Asset.
  5. In February 2016, investors with a 5% holding in Anglo American co-filed a shareholder resolution calling for more transparency from the company over climate change risks and opportunities. See here for the related.

Additional: See here for a copy of the BP resolution.

It is for individual signatory investors to decide if they will support any shared holder resolution filed as part of the Climate Action 100+. In addition, investors that are part of the initiative will need to own/manage a holding in BP to be able to exercise this right. It follows that while the initiative has the backing of investors with $33 trillion in assets under management, only a portion of these investors will at any one time decide or be able to support a shareholder resolution filed through the initiative.

About: 

Climate Action 100+: Climate Action 100+ is an investor initiative to ensure the world’s largest corporate greenhouse gas emitters take necessary action on climate change. More than 320 investors with more than $33 trillion in assets collectively under management are engaging companies on improving governance, curbing emissions and strengthening climate-related financial disclosures. The companies include 100 ‘systemically important emitters’, accounting for two-thirds of annual global industrial emissions, alongside more than 60 others with significant opportunity to drive the clean energy transition.

Launched in December 2017, Climate Action 100+ is coordinated by five partner organisations: Asia Investor Group on Climate Change (AIGCC); Ceres (Ceres); Investor Group on Climate Change (IGCC); Institutional Investors Group on Climate Change (IIGCC) and Principles for Responsible Investment (PRI). These organisations, along with five investor representatives from AustralianSuper, California Public Employees’ Retirement System (CalPERS), HSBC Global Asset Management, Ircantec and Manulife Asset Management, form the global Steering Committee for the initiative. Follow us on Twitter: @ActOnClimate100.

IIGCC: The Institutional Investors Group on Climate Change (IIGCC) is the European forum for investor collaboration on climate change and the voice of investors taking action for a prosperous, low-carbon future. IIGCC has 170 members, mainly pension funds and asset managers, across 11 countries, with over €23 trillion assets under management. IIGCC’s mission is to mobilise capital for the low-carbon transition by collaborating with business, policymakers and fellow investors.

Aviva Investors: Aviva Investors is the global asset management business of Aviva plc. The business delivers investment management solutions, services and client-driven performance to clients worldwide. Aviva Investors operates in 14 countries in Asia Pacific, Europe, North America and the United Kingdom with assets under management of £348 billion as at 30 June 2018.

Hermes Investment Management: Hermes Investment Management, a Federated Investors company, provides world-class active investment management and stewardship services. Hermes, headquartered in London, manages £36.0 billion in assets and offers a broad range of specialist, high- conviction investment strategies spanning listed equities, credit, real estate, infrastructure, private debt and private equity. Hermes’ strategies focus not just on financial results, but also on delivering outcomes beyond performance: holistic returns that consider impacts to society, the environment and the wider world. In Hermes EOS, the company offers one of the industry’s leading engagement resources, representing £359.0 billion of assets*. For more information, visit www.hermes-investment.com.

Source: Hermes as at 30 September 2018 with the exception of two portfolios totalling £3.3m valued as at 31 July 2018.

Legal & General Investment Management: Legal & General Investment Management is one of Europe’s largest asset managers and a major global investor, with total assets of £984.8 billion1. We work with a wide range of global clients, including pension schemes, sovereign wealth funds, fund distributors and retail investors.

Throughout the past 40 years we have built our business through understanding what matters most to our clients and transforming this insight into valuable, accessible investment products and solutions. We provide investment expertise across the full spectrum of asset classes including fixed income, equities, commercial property and cash. Our capabilities range from index-tracking and active strategies to liquidity management and liability-based risk management solutions.

1LGIM internal data as at 31 June 2018. These figures include assets managed by LGIMA, an SEC Registered Investment Advisor. Data includes derivative positions.

Climate Action 100+ welcomes Equinor announcement to strengthen its climate commitments 

Media Contacts:
Sara Sciammacco, Ceres
sciammacco@ceres.org/Tel: 617-247-0700 ext. 172

Tom Fern, IIGCC
tfern@IIGCC.org/Tel: +44 (0) 7867 360 273

24 April 2019 – As a result of engagement led by Climate Action 100+ signatory investors, Equinor has agreed to make strengthened commitments on climate change.  Engagement with the company was led by UBS Asset Management, HSBC Global Asset Management and Storebrand Asset Management. 

Members of the global Climate Action 100+ Steering Committee released the following comments:

Stephanie Pfeifer, a member of the global Climate Action 100+ Steering Committee and CEO, Institutional Investors Group on Climate Change (IIGCC), explains: “Equinor is one of an emerging group of oil and gas majors that understand the need to act on climate change to secure their place in a cleaner global economy. Building on the welcome steps it has already taken, investors will continue to work with Equinor on fully aligning its business with the goals of the Paris Agreement. They also expect others in the sector to follow its lead or face the consequences of ignoring some of their largest shareholders.”

“CalPERS applauds Equinor’s positive response to Climate Action 100+ engagement,” adds Anne Simpson, a member of the Climate Action 100+ global Steering Committee and CalPERS Director of Board Governance and Strategy. “This sets the stage for aligning the company’s strategy on climate change transition in line with the Paris goals of keeping global warming in check. We look forward to Equinor setting out their plans for addressing its impact on regional sites to ensure protection of ecologically sensitive areas such as those in Australia.”

“With this latest climate announcement by Equinor, we now have several of the major oil and gas giants in Europe taking steps to align their long-term strategies with the goals of the Paris Agreement,” said Mindy Lubber, a member of the global Climate Action 100+ Steering Committee, and Ceres CEO and President. “This announcement underscores just how far behind ExxonMobil, in particular, has fallen, and intensifies pressure on the company to follow suit.”

Fiona Reynolds, a member of the global Climate Action 100+ Steering Committee and CEO of PRI commented: “Equinor’s commitment to aligning business activities with the Paris Agreement is an important step for the company and for the sector. It is also consistent with the recent recommendations from Norway’s Climate Risk Commission on how to better manage climate risks. We strongly encourage other oil and gas companies to also take a progressive, committed and proactive stance to act on climate change.”

“While a constructive first step, it is important that investor engagement continue to scrutinize how emerging climate change planning actively considers the impact of capital expenditure into locally sensitive and high impact projects, such as the opening up of the Great Australian Bight to oil and gas drilling,” said Emma Herda member of the global Climate Action 100+ Steering Committee and Investor Group on Climate Change (IGCC) CEOInvestors will be closely scrutinising the alignment of climate change commitments and project development and will continue to pursue constructive outcomes.” 

– Ends –

Notes to editor:

  1. See full statement from Equinor.
  2. See full statement from IIGCC.

About Climate Action 100+ 

Climate Action 100+ is an investor initiative to ensure the world’s largest corporate greenhouse gas emitters take necessary action on climate change. More than 320 investors with more than $33 trillion in assets collectively under management are engaging companies on improving governance, curbing emissions and strengthening climate-related financial disclosures. The companies include 100 ‘systemically important emitters’, accounting for two-thirds of annual global industrial emissions, alongside more than 60 others with significant opportunity to drive the clean energy transition. Launched in December 2017, Climate Action 100+ is coordinated by five partner organisations: Asia Investor Group on Climate Change (AIGCC); CeresInvestor Group on Climate Change (IGCC); Institutional Investors Group on Climate Change (IIGCC) and Principles for Responsible Investment (PRI). These organisations, along with five investor representatives from AustralianSuper, California Public Employees’ Retirement System (CalPERS), HSBC Global Asset Management, Ircantec and Manulife Asset Management, form the global Steering Committee for the initiative. Follow us on Twitter: @ActOnClimate100.

Shell sets out detail on delivery of climate change agreement with Climate Action 100+ investors

Media Contact:
Tom Fern, Head of Communications
E-mail: tfern@IIGCC.org
Mobile: +44 (0) 7867 360 273

14 March 2019 – Shell today has set out initial steps the company will take in delivering commitments on climate change made in a joint statement1 with investors participating in Climate Action 100+ initiative. This is a global investor initiative to ensure the world’s largest corporate greenhouse gas emitters take necessary action on climate change. It involves over 320 investors collectively representing $33 trillion in assets.

Details outlined by the company in its 2018 annual report published today include2:

  • Shell’s first three-year emissions reduction target. Effective as of 2019, this is a commitment to deliver a reduction in the company’s net carbon footprint (NCF) of 2-3% on a 2016 baseline. This covers scope one, two and three emissions – in effect all emissions, from extraction to end use of products.
  • Remuneration going forward of the companies top 150 executives will be immediately linked to delivery of the target.
  • A commitment to set a further three-year NCF target in 2020, with an uplift in ambition on its existing commitment.

Through these actions Shell will be taking an important step towards making its business consistent with the Paris Agreement. The details announced also come a year early within the timeframe set out in its joint statement with investors.

Investor engagement for Climate Action 100+ across Europe is delivered with the support of the Institutional Investors Group on Climate Change (IIGCC).

Stephanie Pfeifer, a member of the global Climate Action 100+ steering committee and CEO, IIGCC explains: “Shell are showing progress in answering the call from investors with $33 trillion in assets to make their business consistent with the goals of the Paris Agreement. Setting the first interim target early and linking it to executive remuneration demonstrates commitment to deliver on the agreement reached with investors as part of Climate Action 100+. We look forward to further steps from both Shell and others in the sector.”

Adam Matthews, Director of Ethics and Engagement, Church of England Pensions Board, one of the investors leading engagement with Shell, explains: “Following last year’s joint statement between Climate Action 100+ investors and Shell we are pleased that the company has brought forward their plan to introduce targets covering all their emissions. This is the first tangible outcome of the agreement reached between investors and Shell. The ball is rolling.”

Carola van Lamoen, Head of Active Ownership of Robeco, adds: “Today we have an early indication of the company’s commitment to the joint statement and their determination to manage the transition to a low carbon economy. It is very welcome and we will continue to engage with the company as it moves forward to set further targets next year.”

The agreement reached with Shell in December 2018 was the first announced as part of Climate Action 100+. Others have since followed with Glencore and BP.

– Ends –

Notes to editor:
1. https://www.shell.com/media/news-and-media-releases/2018/leading-investors-back-shells-climate-targets.html & also https://www.shell.com/media/news-and-media-releases/2018/joint-statement-between-institutional-investors-on-behalf-of-climate-action-and-shell.html
2. Details outlined are a summary of key points set out in the Shell 2018 Annual Report. Content of relevance is on page 71-82. See link https://reports.shell.com/annual-report/2018/servicepages/downloads/files/download2.php?file=shell_annual_report_2018.pdf

About Climate Action 100+
Climate Action 100+ is an investor initiative to ensure the world’s largest corporate greenhouse gas emitters take necessary action on climate change. More than 320 investors with more than $33 trillion in assets collectively under management are engaging companies on improving governance, curbing emissions and strengthening climate-related financial disclosures. The companies include 100 ‘systemically important emitters’, accounting for two-thirds of annual global industrial emissions, alongside more than 60 others with significant opportunity to drive the clean energy transition.

Launched in December 2017, Climate Action 100+ is coordinated by five partner organisations: 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). These organisations, along with five investor representatives from AustralianSuper, California Public Employees’ Retirement System (CalPERS), HSBC Global Asset Management, Ircantec and Manulife Asset Management, form the global Steering Committee for the initiative. Follow us on Twitter: @ActOnClimate100.

About IIGCC
The Institutional Investors Group on Climate Change (IIGCC) is the European forum for investor collaboration on climate change and the voice of investors taking action for a prosperous, low-carbon future. IIGCC has 170 members, mainly pension funds and asset managers, across 11 countries, with over €23 trillion assets under management. IIGCC’s mission is to mobilise capital for the low-carbon transition by collaborating with business, policymakers and fellow investors.

IIGCC works to support and help define the public policies, investment practices and corporate behaviours that address the long-term risks and opportunities associated with climate change. Members consider it a fiduciary duty to ensure stranded asset risk or other losses from climate change are minimised and that opportunities presented by the transition to a low carbon economy – such as renewable energy, new technologies and energy efficiency – are maximised.

 

Climate Action 100+ welcomes Glencore climate change commitments

Media Contacts:
Tom Fern, IIGCC
tfern@iigcc.org/Tel: +44 (0) 7867 360 273

Sara Sciammacco, Ceres
sciammacco@ceres.org/Tel: 617-247-0700 ext. 172

20 February 2019 – As a result of engagement led by Climate Action 100+ signatory investors, Glencore has agreed to align its business and investments with the goals of the Paris Agreement (to limit warming to well below 2 degrees and to achieve net zero emissions in the second half of the century).

This is a first for the mining industry. Importantly, Glencore has undertaken not to grow its coal production capacity.

Engagement with the company was led by The Church Commissioners for England, with active participation from Investec Asset Management and Kempen.

Members of the global Climate Action 100+ Steering Committee released the following comments.

“Climate change brings both risk and opportunity for investors. Keeping global warming to well below two degrees demands bold and urgent action from the world’s largest greenhouse gas emitters,” said Anne Simpson, Climate Action 100+ global Steering Committee chair, and CalPERS Director of Board Governance and Strategy. “Glencore’s new commitments to its investors are a vital step forward in the path to align strategy with the goals of Climate Action100+.”

“Glencore’s commitment to work within the Paris Agreement is a significant step forward for the company. As engagement moves to the next stage we look forward to working with Glencore and the sector as a whole on reducing emissions across the value chain,” explained Stephanie Pfeifer, a member of the global Climate Action 100+ Steering Committee and CEO, Institutional Investors Group on Climate Change.

“Glencore’s announcement is a significant step for the mining sector with potentially wide-reaching implications” said Emma Herd, a member of the global Climate Action 100+ Steering Committee and Chief Executive Officer of the Investor Group on Climate Change (Australia/New Zealand). “Investors will now be looking for more companies in the sector to align their business decisions with the Paris Agreement”.

“We are encouraged to see that Glencore has taken the positive steps to align its business strategy with the goals laid out by the Paris Agreement to limit global temperature rise and to achieve net zero emissions,” said Mindy Lubber, vice chair of the global Climate Action 100+ Steering Committee and CEO and President of Ceres. “As the first mining company to make such a commitment, we are hopeful that others in the sector and in other high-emitting sectors across the economy will follow suit.”

“We welcome this announcement from Glencore and think it will send a powerful signal to other companies about aligning their businesses to the Paris Agreement,” said Fiona Reynolds, a member of the global Climate Action100+ Steering Committee and CEO, the Principles for Responsible Investment (PRI). “It also demonstrates the success of investor engagement. Both corporates and investors need to act now and with urgency on climate action.”

“This announcement from Glencore sets a significant precedent for the sector across all regions, ” said Rebecca Mikula-Wright, a member of the global Climate Action 100+ Steering Committee and Director, Asia Investor Group on Climate Change. “Investors will continue to work with companies and use this as an example of how low carbon transition strategies can be achieved.”

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Climate Action 100+ is an investor initiative to ensure the world’s largest corporate greenhouse gas emitters take necessary action on climate change. More than 300 investors with over $32 trillion in assets collectively under management are engaging companies on improving governance, curbing emissions and strengthening climate-related financial disclosures. The companies include 100 ‘systemically important emitters’, accounting for two-thirds of annual global industrial emissions, alongside more than 60 others with significant opportunity to drive the clean energy transition. Launched in December 2017, Climate Action 100+ is coordinated by five partner organisations: 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). These organisations, along with five investor representatives from AustralianSuper, California Public Employees’ Retirement System (CalPERS), HSBC Global Asset Management, Ircantec and Manulife Asset Management, form the global Steering Committee for the initiative. For more information, visit: www.ClimateAction100.org and follow: @ActOnClimate100

 

BP supports Climate Action 100+ investor call to align its business strategy with the goals of the Paris Agreement

Media Contacts:
Tom Fern, IIGCC
tfern@iigcc.org/Tel: +44 (0) 7867 360 273

Sara Sciammacco, Ceres
sciammacco@ceres.org/Tel: 617-247-0700 ext. 172

1 February 2019 – Climate Action 100+ signatory investors have proposed a far-reaching shareholder resolution at global oil and gas major BP. It commits the company to working to a business strategy consistent with the goals of the Paris Agreement. BP’s Board of Directors is recommending its shareholders support the resolution. See the announcement from investors here.

Members of the global Climate Action 100+ Steering Committee released the following comments:

“Climate change poses risks and opportunities for investors, companies, workers and their communities who have a shared interest in urgent and bold action to fulfill the Paris Agreement goals,” said Anne Simpson, Climate Action 100+ global Steering Committee chair, and CalPERS Director of Board Governance and Strategy. “BP’s spirit of partnership with its share owners shows that real progress is possible, and it is necessary. We applaud this important step towards a sustainable future.”

“We are encouraged that BP will take this positive step to align its business strategy with the goals of the Paris Agreement,” said Mindy Lubber, Climate Action 100+ global Steering Committee vice chair, and Ceres CEO and President. “Going forward, investors will expect full and transparent disclosure, and will hold the board and company executives accountable for BP’s progress against this critical commitment.”

“This is a welcome step by BP, which will hopefully lead to more action on climate change by others in the oil and gas sector,” said Emma Herd, a member of the global Climate Action 100+ Steering Committee and CEO, Investor Group on Climate (IGCC). “Investors will continue to work with BP to ensure that its actions are in line with the goals of the Paris Agreement.”

“It is vital that companies align their business strategies to the goals of the Paris Agreement if we are to have any hope of keeping emissions below two degrees,” said Fiona Reynolds, a member of the global Climate Action 100+ Steering Committee and CEO of the Principles for Responsible Investment (PRI). “While we are pleased to see this action from BP, we need other players in the oil and gas sector to follow suit and we need investors to keep the pressure on companies to do so.”

“Investors are helping to ensure climate change is firmly on the boardroom agenda, which is especially important for the oil and gas sector,” said Stephanie Pfeifer, a member of the global Climate Action 100+ Steering Committee and CEO, Institutional Investors Group on Climate Change (IIGCC). “It’s encouraging to see major companies such as BP moving in the right direction. Global carbon emissions need to be reduced urgently and investors expect other companies in the sector to follow suit.”

“Sustained, coordinated global investor engagement is one of the most effective tools to tackle the world’s greatest challenge, and Climate Action 100+ is an important part of the process to ensure that investors continue to stay engaged with the world’s largest corporate greenhouse gas emitters, and hold them accountable on their efforts to help solve climate change,” said Rebecca Mikula-Wright, a member of the global Climate Action 100+ Steering Committee and Director, Asia Investor Group on Climate Change.

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Climate Action 100+ is an investor initiative to ensure the world’s largest corporate greenhouse gas emitters take necessary action on climate change. More than 300 investors with over $32 trillion in assets collectively under management are engaging companies on improving governance, curbing emissions and strengthening climate-related financial disclosures. The companies include 100 ‘systemically important emitters’, accounting for two-thirds of annual global industrial emissions, alongside more than 60 others with significant opportunity to drive the clean energy transition.

Launched in December 2017, Climate Action 100+ is coordinated by five partner organisations: 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). These organisations, along with five investor representatives from AustralianSuper, California Public Employees’ Retirement System (CalPERS), HSBC Global Asset Management, Ircantec and Manulife Asset Management, form the global Steering Committee for the initiative. For more information, visit: www.ClimateAction100.org and follow: @ActOnClimate100.

 

NYS Comptroller DiNapoli and Church of England call on ExxonMobil to set targets for lowering GHG emissions

Shareholder proposal asks Exxon to set goals in-line with Paris Agreement

Contact:
Office of NY State Comptroller: Matt Sweeney, 212-383-1388
Church Commissioners: Chris Le Marquand, 44-020-7898-1682

17 December 2018 – Institutional investors with an estimated $1.9 trillion under management, led by New York State Comptroller Thomas P. DiNapoli, as Trustee of the New York State Common Retirement Fund (the Fund), and the Church of England’s investment fund (Church Commissioners) have filed a shareholder resolution calling on ExxonMobil to set and disclose greenhouse gas (GHG) reduction targets, covering emissions from both its operations and the use of its products.

“ExxonMobil’s lack of GHG emissions reduction targets puts it at odds with its industry peers that have taken such steps,” DiNapoli said. “The world is transitioning to a lower carbon future and Exxon needs to demonstrate its ability to adapt or risk its bottom line along with investors’ confidence.”

Edward Mason, Head of Responsible Investment for the Church Commissioners, said: “We want to see ExxonMobil develop a clear strategy for long-term sustainability, in line with international commitments for a safer climate. While we have been pleased to see ExxonMobil start to address the impact of climate change on its business over the past two years, the company has much more to do. Our request would bring Exxon in line with its biggest European peer, Shell, and we believe the board can and should support it.”

The resolution, the first of its kind at ExxonMobil, asks the company to set short-, medium- and long-term GHG targets aligned with the goals established by the Paris Agreement to keep the increase in global average temperature to well below 2 degrees, and to pursue efforts to limit the increase to 1.5 degrees. ExxonMobil’s peers including Shell and Total have begun to set long-term emission reduction targets following investor engagement.

The resolution has been developed in line with the overarching expectations of the Climate Action 100+ initiative, of ensuring companies develop business strategies consistent with the Paris Agreement. Climate Action 100+ is a global investor initiative, engaging the world’s largest corporate greenhouse gas emitters in seeking to ensure they take necessary and sufficient action on climate change. It involves 310 investors with more than $32 trillion under management as the largest shareholder engagement initiative on climate change. The ExxonMobil resolution comes just weeks after Shell and Climate Action 100+ signatory investors agreed to new climate targets, demonstrating the power of collective global investor engagement.

“Global investors are increasingly calling on the companies that they own to demonstrate that they are prepared for a carbon-constrained future,” said Andrew Logan, Director of Oil and Gas at the sustainability nonprofit organization Ceres. Ceres is one of the founding partner organizations of Climate Action 100+ responsible for coordinating investor engagements in North America.  “Setting ambitious goals consistent with the Paris Agreement to reduce heat-trapping greenhouse gas emissions — and taking concrete steps to actualize those goals — would be a sign to investors that Exxon is taking this issue seriously.”

The resolution is expected to be the subject of a shareholder vote at the ExxonMobil’s annual meeting in the spring of 2019.

A previous resolution filed by the Fund and the Church Commissioners won support from 62% of shareholders in 2017 and asked the company to disclose the impact of measures to combat climate change on its business. In response, ExxonMobil released a first report in December 2017. The Fund, Church Commissioners and other investors continue to hold talks with ExxonMobil about the importance of releasing a more comprehensive disclosure report.

A number of investors have joined the Fund and the Church Commissioners in supporting the request, including CalPERS, HSBC Global Asset Management, Presbyterian Church USA and SHARE on behalf of Fonds de Solidarité des Travailleurs du Québec (FTQ).

The full text of the shareholder resolution filed at Exxon is here: https://osc.state.ny.us/press/docs/xom-resolved.pdf

Press Contacts:
Office of NY State Comptroller: Matt Sweeney, 212-383-1388
Church Commissioners: Chris Le Marquand, 44-020-7898-1682

About the NYS Common Retirement Fund
The New York State Common Retirement Fund is the third largest public pension fund in the United States with assets of $207.4 billion as of the March 31, 2018 end of its most recent fiscal year. The Fund holds and invests the assets of the New York State and Local Retirement System on behalf of more than one million state and local government employees and retirees and their beneficiaries. It has consistently been ranked as one of the best managed and best funded plans in the nation.

About the Church Commissioners for England
The Church of England’s investment fund, the Church Commissioners, manage investable assets of some £8.3 billion, mainly held in a diversified portfolio including equities, real estate and alternative investment strategies. The Commissioners’ work today supports the Church of England as a Christian presence in every community.

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Shell announces comprehensive carbon emissions reductions commitment with Climate Action 100+ investors 

3 December 2018: Members of Climate Action 100+ Steering Committee released the following statement in response to Shell’s Net Carbon Footprint targets:

Anne Simpson, Climate Action 100+ Steering Committee Chair and Investment Director, CalPERS, explains: “We applaud the joint statement by Shell and lead investors for Climate Action 100+. The commitment by Shell to fully respond to the engagement shows the value of dialogue and global partnership to deliver on the goals of the Paris agreement on climate change. Shell is setting the pace, and we look forward to other major companies following their lead.”

Stephanie Pfeifer, Chief Executive, Institutional Investors Group on Climate Change (IIGCC) and a member of the Climate Action 100+ global Steering Committee, explains: “IIGCC welcomes and is glad to have supported this first of its kind statement between investors and an oil and gas major. Short- and long-term climate targets, linked to remuneration and a clear commitment on lobbying practices, provide a model for others across the sector to follow.”

“As UN climate talks get underway in Poland this week, the importance of the oil and gas sector working to a well below 2°C future couldn’t be clearer. It is now down to the sector to demonstrate they understand this, as the investors with $32 trillion in assets involved in Climate Action 100+ will continue to make clear their expectations.

“A key objective of Climate Action 100+ is for companies to set long-term emission reduction targets in line with the goals of the Paris Agreement. The framework laid out in the joint statement provides a robust system to track progress over time, including on short-term targets, annual reporting and plans to report within financial filings. Investors working through IIGCC will continue to evaluate Shell’s progress closely to ensure that it continues to increase ambition. We also commend Shell for agreeing to review its lobbying activities in line with IIGCC’s members’ expectations.”

Mindy Lubber, Chief Executive Officer and President, Ceres and co-Chair of the Climate Action 100+ global Steering Committee, explains: “The Shell agreement is an important step in the right direction as it ties executive compensation to the company’s efforts to reduce greenhouse gas emissions, including emissions related to product use.This commitment demonstrates the power of collective global investor engagement. Climate Action 100+ investors will now use the commitment to raise the bar for the oil and gas industry as a whole.”

Emma Herd, Chief Executive Officer of the Investor Group on Climate Change (IGCC) and a member of the Climate Action 100+ Steering Committee, said: “This announcement demonstrates the potential for global investor collaboration to deliver concrete outcomes. Investors supporting the Climate Action 100+ in all regions can now pick this up and take it back to companies they are engaging with as a model of what can be achieved when we work together to advocate for action on climate change.”

Rebecca Mikula-Wright, Director of the Asia Investor Group on Climate Change (AIGCC) and a member of the Climate Action 100+ Steering Committee, said:”This announcement demonstrates what is possible from oil and gas companies as they work on their low carbon transition plans. It puts all companies on notice, including those in Asia about what investors expectations are of this sector and provides a clear system for investors to track progress and ask for increased ambition.”

“Investor engagement is undoubtedly playing a major role in changing corporate attitudes on climate change and making it clear that urgent action on transitioning from a high to a low carbon scenario is needed,” said Fiona Reynolds, a member of the global Climate Action 100+ Steering Committee and CEO of the Principles for Responsible Investment (PRI). This is a welcome development form BP and we hope this will open the door to more companies in carbon intensive industries to commit to setting targets for reducing emissions.”

Also see here for a statement from the Church of England Pensions Board along with comment from other investors involved attached.

See Shell announcement here.

See joint Shell and Climate Action 100+ statement here.

Climate Action 100+ is delivered through a set of Engagement Working Groups operating across regions and sectors. IIGCC lead the European Engagement Group.

Media Contacts: 

Tom Fern, IIGCC
tfern@iigcc.org / Tel: +44 (0) 7867 360 273

Sara Sciammacco, Ceres
sciammacco@ceres.org

About Climate Action 100+: Climate Action 100+ is a five-year initiative led by investors to engage many of the world’s largest greenhouse gas emitters and companies across all sectors of the global economy that have significant opportunities to drive the clean energy transition and achieve the goals of the Paris Agreement. Investors are calling on companies to improve governance on climate change, curb emissions and strengthen climate-related financial disclosures. 

Climate Action 100+ is coordinated by five partner organisations: 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). It builds upon the collaborative investor engagement pioneered since 2012 by the four organisations that together form the Global Investor Coalition on Climate Change. It also draws upon the leadership of PRI and its investor engagements across environmental, social and governance issues. For more information, visit: www.ClimateAction100.org and follow: @ActOnClimate100.

About IIGCC: The Institutional Investors Group on Climate Change (IIGCC) is the European forum for investor collaboration on climate change and the voice of investors taking action for a prosperous, low-carbon future. IIGCC has more than 160 members, mainly pension funds and asset managers, across 11 countries, with over €21 trillion assets under management.

-Ends-

Asian investors with US$2.3 trillion in assets join Climate Action 100+

World’s largest pension fund GPIF of Japan announced as a Supporter of initiative. Initiative drives momentum in investor engagement activity across Asia, with upswing in signatories across the region.

23rd October 2018: Climate Action 100+ is today announcing strong growth in investor participation across Asia and Japan’s Government Pension Investment Fund (GPIF), as the latest investor to join the initiative1. As the world’s largest single pension fund2, GPIF’s decision to join Climate Action 100+ adds further significant momentum in global growth of the investor-led corporate engagement initiative.

“Climate Action 100+ is honored to welcome GPIF as a Supporter. The risks and the opportunities of climate change call for global partnership and GPIF’s support will be vital to our success,” said Anne Simpson, Investment Director, CalPERS and Climate Action 100+ Steering Committee Chair.

The total number of investors now involved in the initiative has now surpassed 3103, representing over US$32 trillion in assets collectively under management.

“In just the past five months, we’ve seen investors across Asia collectively representing US$959 billion in assets under management join Climate Action 100+. That’s before you even factor in GPIF, explains Emily Chew, Global Head of ESG Research and Integration, Manulife Asset Management, Chair of the Asia Investor Group on Climate Change and a member of the Climate Action 100+ global Steering Committee“While it’s true the ESG landscape is more mature in some respects across Europe and North America, the progress being made through Climate Action 100+ here in Asia demonstrates this is beginning to change. Asian investors increasingly understand the benefits involved, from contributing to addressing climate change and helping safeguard their own investments in the process.”

Asian investors continue to join the initiative, with six new signatories coming on board since late May, including Nikko Asset Management, China Asset Management Company, Mitsubishi UFJ Trust & Banking Corporation, Fukoku Capital Management,  Resona Bank and most recently GPIF. They join existing investors from Japan and asset owners from Taiwan and Indonesia.

GPIF has long been recognised as demonstrating a strong commitment to the ESG agenda. Today’s news follows a recent announcement that it will allocate US$10 billion domestically and internationally, to passive funds tracking environmental stock indices 4.

GPIF joins Climate Action 100+ as a Supporter. Supporters fully endorse the goals and objectives of the initiative, while not undertaking direct engagement with companies.

– Ends –

Media contact
E-mail: news@climateaction100.org

AIGCC: Rebecca Mikula-Wright
rebecca.wright@igcc.org.au

Tel: +61 (0) 424 413 211
IIGCC: tfern@IIGCC.org and/or
Tel: +44 (0) 7867 360 273

Notes to Editor

    1. See GPIF announcement here.
    1. The Government Pension Investment Fund reports assets under management of around US$1.4tn.
    1. A full list of members is available on the Climate Action 100+ website here.
  1. See GPIF announcement here.

About Climate Action 100+
Climate Action 100+ is a five-year initiative led by investors to engage many of the world’s largest greenhouse gas emitters and companies across all sectors of the global economy that have significant opportunities to drive the clean energy transition and achieve the goals of the Paris Agreement. Investors are calling on companies to improve governance on climate change, curb emissions and strengthen climate-related financial disclosures.

Climate Action 100+ is coordinated by five partner organisations: 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). It builds upon the collaborative investor engagement pioneered since 2012 by the four organisations that together form the Global Investor Coalition on Climate Change. It also draws upon the leadership of PRI and its investor engagements across environmental, social and governance issues.  For more information, visit: www.ClimateAction100.org and follow: @ActOnClimate100.

——————————

CONTACT:
Sara Sciammacco
news@climateaction100.org

Climate Action 100+ investors scale up engagement with greenhouse gas emitters, add more focus companies to drive clean energy transition

More influential investors including AllianceBernstein, Mitsubishi UFJ Trust and Banking Corporation, USD $43 billion UK pension pool Boarders to Coast Pension Partnership, and USD $64 billion Australian pension fund UniSuper sign on to initiative

3 July 2018: Investor signatories to Climate Action 100+ have scaled up engagement with systemically important greenhouse gas emitters, while expanding their focus list of companies, adding 61 companies that have significant opportunities to drive the clean energy transition and help achieve the goals of the Paris Agreement.

Launched in December 2017 at the One Planet Summit, with 225 investors with $26 trillion in assets under management, Climate Action 100+ is now backed by 289 investors with nearly $30 trillion in assets under management, mobilising across 29 countries. The full list of investor signatories can be found here.

“The growth of Climate Action 100+ among the global investment community in the last six months is more than we ever expected,” said Anne Simpson, Investment Director of Sustainability at the California Public Employees’ Retirement System, the largest U.S. public pension fund with more than $349 billion in assets under management. “More investors and pension funds are coming together in partnership to engage with systemically important greenhouse gas emitters that are producing 85 percent of carbon emissions on climate change.  We are doing this because serious financial risks are in play across the global economy.”

Investor signatories added an additional 61 companies (known as the + list) to the initiative’s focus list because they believe these companies are material to their investment portfolios and have either a significant opportunity to drive the clean energy transition at the global or regional level, or may be exposed to climate-related financial risks, including risks to physical assets, that are not captured solely by emissions data. The initial focus list of 100 companies, announced last year, was developed using CDP reported and modelling data on the companies’ combined direct and indirect scope 1, 2 and 3 greenhouse gas emissions, including emissions associated with the use of their products. The full list of focus companies, including the + list, and details of the selection process can be found here.

“Investors recognize that exposure to climate-related financial risks as well as the opportunities associated with the transition to a lower carbon economy are present across many sectors,” said Stephanie Maier, Director of Responsible Investment, HSBC Global Asset Management. “The focus companies represent both carbon intensive companies and those with significant opportunities to accelerate the transition directly at the regional and global level and help achieve the goal of the Paris Agreement of limiting global warming to well below two-degrees Celsius. We welcome the leadership ambitions that a number of companies have set out, but now is the time to intensify climate action together and ensure that the goals of the Paris Agreement are achieved.”

Investor signatories are specifically calling on companies to improve governance on climate change, curb emissions and strengthen climate-related financial disclosures. Climate Action 100+ also released an update today that shows companies on the initiative’s focus list, have started to make progress towards its goals, including a trebling in the number of companies supporting or committing to implement the Financial Stability Board’s Task Force on Climate-related Financial Disclosures recommendations.

The update shows that:

  • 18 percent of focus companies officially support or have committed to implement the TCFD recommendations, a threefold increase in corporate support for the recommendations since the launch.
  • 22 percent of focus companies have set or committed to set a science-based target for reducing their greenhouse gas emissions or equivalent long-term target beyond 2030.

“Our deep engagements are global and collaborative, happening all around the world in 32 countries across Australia, Asia, Europe, and North America,” said Emily Chew, Global Head of ESG Research and Integration, Manulife Asset Management. “By adding additional companies to the focus list, we are expanding our potential impact on reducing systemic climate change risks, and realising the economic benefits of the low-carbon transition.”

“A number of companies on the Climate Action 100+ focus list have already begun to make progress towards the goals of the initiative,” said Andrew Gray, Senior Manager of Investments Governance, AustralianSuper. “We are seeing companies commit to improved climate change disclosures and set targets for greenhouse gas emissions reductions.”

Each year, Climate Action 100+ will produce an annual benchmarking report developed by independent third-party experts to evaluate corporate progress towards the goals of the initiative. The report will highlight focus companies that have responded positively to the collaborative engagements. Companies may be removed from the focus list if they have made sufficient progress to meet the goals of the initiative.

“Investors recognize that climate change risks can be material, but they also understand that solutions to these risks also present opportunities to protect the long-term value of their investment portfolios,” said Laetitia Tankwe, Responsible Investment Adviser, Ircantec President Jean-Pierre Costes, Groupe Caisse des dépôts.

Climate Action 100+ is supported in part by a number of funders including ClimateWorks Foundation and KR Foundation. Participation in the initiative is a key investor action included in The Investor Agenda. The Investor Agenda will be formally launched at the upcoming Global Climate Action Summit this September taking place in San Francisco, California.

About Climate Action 100+
Climate Action 100+ is a five-year initiative led by investors to engage systemically important greenhouse gas emitters and other companies across the global economy that have significant opportunities to drive the clean energy transition and help achieve the goals of the Paris Agreement. Investors are calling on companies to improve governance on climate change, curb emissions and strengthen climate-related financial disclosures. Investor representatives from AustralianSuper, California Public Employees’ Retirement System (CalPERS), HSBC Global Asset Management, Ircantec and Manulife Asset Management have helped to lead the design and development of Climate Action 100+. The initiative is coordinated by five partner organisations: 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). It builds on the successful investor engagement programmes coordinated by the partner organisations over a number of years. For more information, visit: www.ClimateAction100.org and follow:@ActOnClimate100.

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MEDIA CONTACTS:
Sara Sciammacco, news@climateaction100.org
Hannah Pearce, news@climateaction100.org

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

225 investors with more than USD $26.3 trillion assets under management to engage with 100+ companies to ensure they act swiftly to improve governance on climate change, curb emissions, and strengthen climate-related financial disclosures

PARIS 12 December – 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.

The initiative, known as Climate Action 100+, led and developed by investors and supported and co-ordinated by five partner organisations from around the world, launched on 12 December, the second anniversary of the Paris Agreement. Betty T. Yee, a board member of California Public Employees’ Retirement System (CalPERS), the largest U.S. public pension fund and a participant in Climate Action 100+, made the announcement during a panel discussion at the One Planet Summit.

Investors who have signed on to the initiative will initially focus their engagement on 100 of the world’s largest corporate greenhouse gas emitters. The initial list of companies, which includes but is not limited to those within the oil and gas, electric power and transportation sectors, has been developed using CDP data on the companies’ combined direct and indirect (scope 1, 2 and 3) emissions, including emissions associated with the use of their products.

Anne Simpson, Investment Director of Sustainability at CalPERS, said: “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.”

Specifically, as part of their collaborative engagement, 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.
    1. 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.
  1. 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.

Stephanie Maier, Director of Responsible Investment at HSBC Global Asset Management, said: “Climate change is a material and systemic risk no long-term investor can afford to ignore. To support the full implementation of the Paris Agreement it is also vital that investors and universal owners across the mainstream investment community do more to ensure major corporate emitters move swiftly to address the risks and pursue the opportunities presented by climate change, providing greater disclosure on how they are aligning with the 2-degrees transition.”

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.  

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.”

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.  Since an invitation to sign on to the initiative was first issued in September 2017, 225 investors from around the world who collectively oversee more than USD $26.3 trillion in assets under management, have signed on. Additional investors are encouraged to sign on to the initiative by contacting the Implementation Working Group co-ordinators Oliver Grayer or Ben Pincombe at info@climateaction100.org and/or working through the coordinating partner organisation in their respective region.

Andrew Gray, Senior Manager of Investments Governance at Australian Super, said: “In few short months a substantial community of institutional investors have coalesced around this initiative because they want to send an unequivocal signal– directly to companies – that they will be holding them accountable in order to secure nothing less than bold corporate action to improve governance, curb emissions, and increase disclosure to swiftly address the greatest challenge of our time.”

The initial list of 100 companies was developed through a collaborative process led by a global Steering Committee made up of lead executives and one investor representative from each partner organisation. While some companies have been included on that list because of their scope 1 or 2 emissions, others have been included primarily in reference to their scope 3 emissions. Investors acknowledge that some of these companies have already demonstrated climate leadership on one or more of the goals of the initiative, such as setting science-based target goals for greenhouse gas emissions reductions, committing to source power from 100 percent renewable energy, and providing disclosure consistent with the Financial Stability Board’s Task Force on Climate-Related Financial Disclosures (TCFD) recommendations.

Each year, in partnership with researchers, Climate Action 100+ will produce a public annual report that will assess how the companies have responded to the collaborative engagement and set the 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.

An additional list of companies, who are considered by investors to be potentially exposed to climate-related financial risks, is expected to be added to the focus list next year.

Notes for Editors
The launch announcement will be streamed live starting at 9:00 (local Paris time) at https://www.oneplanetsummit.fr/en/.

Embargoed materials including the Climate Action 100+ Sign-on Statement and the list of investor signatories, as well as the initial focus list of 100 companies will be published on 12 December 2017 at www.climateaction100.org at the time of launch (09:01 local Paris time).

The initial focus list of 100 companies was developed using CDP (reported and modelling) data on the companies’ combined direct and indirect (scope 1, 2 and 3) emissions, including emissions associated with the use of their products. Members of the Climate Action 100+ Steering Committee thank CDP for their support.

Please find here the link to listen to the audio recording of the embargoed media tele-briefing that was held on Thursday, 7 Dec with investor members of the Climate Action 100+ Steering Committee.

Further comment from other investor signatories is available to download here in the press notices from the coordinating partner organisations:

AIGCC
Ceres

IGCC
IIGCC
IIGCC en francais
PRI

About Climate Action 100+
Climate Action 100+ is a five-year initiative led by investors to engage with the world’s largest corporate greenhouse gas emitters to improve governance on climate change, curb emissions and strengthen climate-related financial disclosures. Investor representatives from Australian Super, California Public Employees’ Retirement System (CalPERS), HSBC Global Asset Management, Ircantec and Manulife Asset Management have helped to lead the design and development of the initiative. Climate Action 100+ is co-ordinated by five partner organisations: 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). It builds upon the collaborative investor engagement pioneered since 2012 by the four organisations that together form the Global Investor Coalition on Climate Change. It also draws upon the leadership of PRI and its investor engagements across environmental, social and governance issues.  For more information, visit: www.ClimateAction100.org and follow: @ActOnClimate100.

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