New Investor Report: Oil & gas companies show progress on climate change, but laggards like ExxonMobil remain way behind

In a new report, published today, global investors conclude that some of the largest global oil and gas companies such as Statoil, Eni and Total are well ahead of others like ExxonMobil when it comes to climate change management and disclosure.

Investor Climate Compass: Oil and Gas – Navigating Investor Engagement is a joint report from the four investor networks that make up the Global Investor Coalition on Climate Change (GIC) and CDP. It analyses the impact of persistent climate-focused investor engagement – through private dialogue and public challenge via shareholder resolutions – on 10 large oil and gas companies in North America and Europe.

The report confirms that investor engagement has had a discernible impact on board and executive decision-making with respect to the disclosure and management of climate change risks, highlighting progress and the remaining challenges in five core areas of investor concern or ‘expectations’.

Read the media release

Read the report

Over 280 global investors (managing more than $17 trillion in assets) urge G7 to stand by Paris Agreement and drive its swift implementation

8 May 2017

UPDATE: London/New York/Sydney Monday 22 May 2017 (revised from material previously issued on 8 May 2017)

Over 280 global investors (managing more than $17 trillion in assets) urge G7 to stand by Paris Agreement and drive its swift implementation.

282 long‐term institutional investors representing more than USD $17 trillion in assets have written to G7 heads of state urging governments to stand by their commitments to the Paris Agreement at their upcoming Summit in Taormina, Italy on May 26‐7.

  • Reiterate their support for and commitment to implement the Paris Agreement, including the delivery of their own Nationally Determined Contributions in full.
  • Bring forward focused and targeted long-term climate and energy plans that will ensure their future actions align with commitments under the pact to keep global average temperature rise to well below 2°C above pre-industrial levels and preferably to 1.5 °C.
  • Drive investment into the low carbon transition through aligning climate-related policies, phasing out fossil fuel subsidies and introducing carbon pricing where appropriate.
  • Implement climate-related financial reporting frameworks, including supporting the Financial Stability Board Task Force on Climate-related Financial Disclosures’ recommendations.

Read the media release

Read the Investor Letter

Read the G7 and G20 briefing paper

Asian and Australian investors launch major new guide on climate change disclosure

12 April 2017

Investor groups from Australia and Asia have come together to release a major new guide on climate change disclosure for institutional investors, the first to be released following the publication of the draft recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD).

Developed by the Investor Group on Climate Change (IGCC – Australia/New Zealand) and the Asia Investor Group on Climate Change (AIGCC – Asia) Transparency in Transition: A Guide to Investor Disclosure on Climate Change is an essential building block to support investors and stakeholders in safely steering the global economy through a period of rapid and far-reaching transition, by better understanding the financial implications.

Read the full media release

Read the report

Investors welcome ratification of the Paris Agreement

The Asia Investor Group on Climate Change (AIGCC) welcomes recent announcements that Japan, Korea and today Australia have ratified the Paris Agreement.

Speaking on behalf of AIGCC, Emma Herd, Chief Executive Officer of Investor Group on Climate Change (IGCC) said “Investors strongly endorse the Paris Agreement and welcome today’s decision by these governments to ratify the Paris Agreement.

 

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Global investors acting on climate change

The Asia Investor Group on Climate Change (AIGCC) has joined global investor groups in releasing a new snapshot of the actions investors have taken since the Paris Agreement was finalised.

Investors Got the Signal: Actions in 2016 since the Paris Agreement highlights practical examples of the steps investors have taken in 2016 to engage with companies on carbon-reducing strategies, deploy capital to low carbon assets, decarbonise investment portfolios and engage with policymakers.
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Global investors launch guide to drive engagement on climate risk with the automotive sector

Less than a week after the UN confirmed the Paris Agreement would come into effect on 04 November this year, a global network of more than 250 institutional investors (representing assets worth over $24 Trn) has published a guide setting out the threats facing the automotive sector and investor expectations for how these companies must shift gear to adapt their business strategies to address climate related risk and build a sustainable low carbon transport system for the future.

Launching Investor Expectations of Automotive Companies – Shifting gears to accelerate the transition to low carbon vehicles Stephanie Pfeifer, CEO for European investor network IIGCC said, “This guide signals a new area of concerted engagement between big investors and one of the most significant sectors when it comes to tackling the climate challenge.  As a consequence of the Paris Agreement, investors expect regulatory frameworks affecting the automotive sector to become far more stringent, not least those governing vehicle fuel performance standards in the EU and elsewhere. Several automotive companies have already recognised they must increase capital expenditure in sustainable driving technology and product pipelines if they are to develop a climate resilient business model. Likewise, that they must engage with policy makers to ensure sustainability is placed at the heart of the industry’s future.”

Commenting on the guide, Dr Hans-Christoph Hirt, Co-Head of Hermes EOS, the stewardship team of Hermes Investment Management which led the drafting of the guide said, “Long-term investors want to ensure that automotive companies are prepared for the challenges stemming from climate change, new technologies, changing policies and shifts in demand caused by global trends. Investors expect the industry to embark upon a smoother route to future prosperity by developing and implementing long-term business strategies which are resilient to climate change and resulting regulatory shifts. Investors expect that such a strategy will feature board-level responsibility for climate change and sustainability, and emission reduction targets with challenging goals. Automotive companies should work together with policy makers to manage the shift to lower emissions vehicles and develop the new infrastructure required to deliver a sustainable low-carbon transport system.”

Chris Davis, senior program director of the Ceres Investor Network on Climate Risk said, “Strong fuel efficiency regulations are in the economic interest of the auto industry; acting as an insurance policy for automakers in the event of future fuel price spikes, and providing significant benefits to suppliers of fuel saving technologies. A growing number of institutional investors recognise that climate change will impact their holdings, portfolios, and asset values in the short and long-term. To achieve sustainable returns for clients and beneficiaries, investors in the automotive sector must engage to ensure companies are prepared to thrive in a carbon constrained environment and support robust policy action sufficient to drive the transition to clean vehicles.”

Emma Herd, CEO at Investor Group on Climate Change and representing the Asia Investor Group on Climate Change said, “Established automotive companies are highly exposed to competition from new entrants responding to growing consumer demand for cleaner vehicles and smart transport services. Consumer demand, combined with targeted government support, is already driving a shift to lower emission fleets in Japan, India, China and South Korea. Auto makers in all regions have significant challenges beyond simply producing cleaner cars, trucks or buses. To show they can act in the long-term interest of investors and beneficiaries they must drive wholesale change across their manufacturing base and through every part of their global supply chains to shrink the carbon footprint of the entire industry.”

About the guide

Investor Expectations of Automotive Companies – Shifting gears to accelerate the transition to low carbon vehicles was developed by the Institutional Investors Group on Climate Change (IIGCC) with support from other investor networks in North America (Ceres’ INCR), Asia (AIGCC) and Australasia (IGCC) in the Global Investor Coalition ( http://globalinvestorcoalition.org/ ). It is intended to be used in tandem with Institutional Investors’ Expectations of Corporate Climate Risk Management (http://www.iigcc.org/publications/publication/institutional-investors-expectations-of-corporate-climate-risk-management ) and is the latest in a series of sector focused guides produced to support investor engagement with key sectors to curb carbon asset and climate risk. It joins existing guides addressing engagement with oil& gas, mining, and utilities companies.

This guide is intended to enable investors to engage with the boards of automotive (and component supply) companies about their efforts to re-think their business models and contribute directly to the development of more sustainable driving technologies in order to mitigate long term climate change related risks. The expectations in the guide go further than suggesting automotive companies should support compliance with 2°C regulatory regime. They call on auto companies to:

  • actively engage with suppliers, governments and industry peers to innovate for zero emissions vehicles and supporting infrastructure
  • close the gap between real world and emissions testing
  • pro-actively adjust their business models to incorporate a long-term strategy that includes decarbonisation and the shift to providing mobility services and maintaining competitive advantage over peers
  • invest substantially in sustainable driving technologies and product pipelines
  • set meaningful targets and metrics to reduce greenhouse gas emissions in operations, fleet and supply chain
  • engage publicly with policy makers, investors and the rest of the sector to place sustainability at the heart of the industry’s future.

Read the report Investor expectations of automotive companies: Shifting gears to accelerate the transition to low carbon vehicles

The $7.7 trillion transition: major AIGCC report charts Asian climate finance

Asia Investor Group on Climate Change (AIGCC) launch:

The $7.7 trillion transition: major new report charts Asian climate finance  

Tuesday 6 September, Singapore: To mark the launch of the new Asia Investor  Group on Climate Change (AIGCC) today in Singapore, the group is releasing the  most comprehensive analysis to date of climate finance sector activity in Asia.  

The report – Investing for the climate in Asia undertaken by Asia Research and Engagement (ARE), with the support of Australia and New Zealand Banking Group Limited (ANZ), reviewed the disclosure of leading domestic financial institutions across the Asia Pacific region to understand the state of the finance industry’s response to climate change. This review included 36 banks, 30 investors, and 24 insurers. 

It revealed a significant shift toward embedding climate risk and responsible investment  into  core  business  activities. However, much remains to be done, with  financial regulators needing to take steps to help catalyse the shift to low carbon investment in order to reduce systemic risks and improve competitiveness. 

Download the media release

Download the report