Responsible Investment News

Can big investors save the world?

The men and women who control trillions of dollars' worth of assets are flexing their muscles. And as shareholders they are in a position to put pressure on companies to do the right thing.

Climate Action 100+ is a group of more than 360 investors with more than $34tn (£28tn) in assets under management.

They are worried not just about damage to the planet, but about the long-term viability of their investments. In short, irreversible harm to the environment would reduce or even wipe out the value of those investments.

This group, which includes influential institutional investors such as the Church of England Commissioners, aims to engage with "systemically important emitters" in which they hold shares to curb greenhouse gas emissions and improve governance.

One of those firms is the oil giant BP, which recently had its annual general meeting.

Climate Action 100+ put forward a shareholder resolution to get BP to demonstrate that its strategy was consistent with the goals of the Paris climate agreement, the international plan to limit global warming to 1.5C.

The resolution, which was supported by the BP board was approved and is now legally binding.

Read full article here.