Climate Action 100+ investors encourage Korean Republic Presidential Committee on Carbon Neutrality to support companies with clear 2050 decarbonisation pathways
11 October 2021
Investor and stewardship service provider signatories to Climate Action 100+ have written to the Presidential Committee on Carbon Neutrality encouraging it to outline a clear and fully aligned-2050 decarbonisation pathway to support South Korean company transition to net zero emissions.
The letter urges that the recently developed Net Zero 2050 scenario from the International Energy Agency (IEA NZ2050), and its indicative coal and gas phase-out dates, be embedded in the transition pathways the Committee is developing for South Korea to achieve its mid-century carbon neutrality goal.
The letter is signed by investors and stewardship service providers, responsible for USD$6.7 trillion (₩7,993 trillion) in assets under management. This includes four lead investors engaging with South Korean companies through Climate Action 100+ – APG Asset Management, BMO Global Asset Management, EOS at Federated Hermes and Sumitomo Mitsui Trust Asset Management.
The letter from Climate Action 100+ investors states: “For many of the companies we are engaging with, the outcome of national South Korean policy on energy and climate change is critical to the achievement of their net zero ambition.
“Adopting a clear pathway to net zero emissions by 2050 is also crucial for the Korean economy to remain competitive in global capital markets.
“We recognise the work of the Presidential Committee on Carbon Neutrality to develop pathways for the Republic of Korea to achieve the national commitment to reach net zero emissions by 2050.
“We believe that the private coal-fired power plants currently under construction in Korea will go against efforts of the Committee, putting assets at risk of becoming stranded and unprofitable due to low utilization rates and extra efforts necessary to offset emissions incurred.
“The IEA NZ2050 scenario, including the indicative fossil fuel phase out dates, should be embedded in the scenarios being developed by the Committee.”
Read the letter
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