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.

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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.

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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.

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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.
  2. The Government Pension Investment Fund reports assets under management of around US$1.4tn.
  3. A full list of members is available on the Climate Action 100+ website here.
  4. 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.

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

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.