London Daily

Focus on the big picture.

Britain's largest fund manager expands Climate Impact Pledge to 1,000 companies and will sanction those that perform poorly

Britain's largest fund manager expands Climate Impact Pledge to 1,000 companies and will sanction those that perform poorly

Britain's largest asset manager Legal & General Investment Management, which oversees around $1.6 trillion in assets, is significantly increasing the number of companies it covers under its Climate Impact Pledge.
Not long after the introduction of the 2015 Paris Agreement on climate change, LGIM introduced the Climate Impact Pledge, which would assess and engage in the climate strategies of 80 of the world's largest companies across six sectors.

Now LGIM is expanding and updating the Climate Impact Pledge to oversee 1,000 companies and making the climate rankings for those companies publicly available, using a traffic light system.

The companies are selected from 15 climate-critical sectors and are responsible for 60% of all greenhouse gas emissions from listed companies, Meryam Omi, head of sustainability and responsible investment strategy for LGIM, said in a blog post.

"To help accelerate this momentum, LGIM is ramping up the ambition of its Climate Impact Pledge engagement programme," Omi said. "We are leveraging new data sets and analytics, vastly increasing the sectors and companies covered, in a concerted push to drive more transparency in the market and help companies build resilient strategies. And, in keeping with our belief in 'engagement with consequences', we will systematically hold companies accountable through voting and investment sanctions."

LGIM is seen to be a leader in sustainable investing, having recently been listed in the UN Principles for Responsible Investment 2020 leaders group, which contains PRI signatories that have demonstrated responsible investment excellence and have excelled in the theme of climate reporting.

Part of the Climate Pledge involves creating a sanction list for companies that continue to demonstrate poor performance and show limited improvement toward climate change initiatives.

In the October 2020 report, LGIM noted that 7 of the 10 largest improvements in scores since 2019 were made by companies on the sanction list. The company currently has 13 companies sanctioned, including ExxonMobil and China Construction Bank.

Now, around 500 of the companies with poor scores relative to their size will receive letters detailing LGIM's assessment of their approach to sustainability, Omi said. LGIM will continue to sanction companies that continue to fall short of the company's minimum standards.

Around 60 companies that are seen to be influential within their sector will be selected for in-depth engagement on why they can, and should, embrace the transition to net-zero carbon emissions over the next few years, LGIM said.

Related Articles

London Daily
UK Labour Government to Regulate Powerful AI Models
Record Heat Temperatures in Ukraine Amid Power Crisis
UK Government Plans to Remove 92 Hereditary Peers from House of Lords
King Charles III Delivers Labour Government's First King's Speech
Officials Remove 'Disastrous' Label from Liz Truss's Mini-Budget
Keir Starmer Outlines Ambitious Plans for Government
Japan to Allocate $3.3 Billion to Ukraine Using Frozen Russian Assets
EU Parliament Condemns Hungarian PM's Russia Visit
FBI Struggles to Find Motive Behind Trump Shooting Incident
Kremlin Criticizes EU Rejection of Orban’s Ukraine Peace Proposal
Google and Microsoft Now Consume More Power Than Several Large Countries
Secret Service Criticized for Lack of Sniper Protection During Trump Shooting
US Senator Robert Menendez Found Guilty of Corruption
Deep Concerns about Political Violence as US Approaches Election Day
Trump Media Shares Surge Following Re-Election Bid Boost
The gunman who attempted to assassinate Donald Trump Saturday is 20-year-old Thomas Matthew Crooks
Banksy's Influence on Port Talbot's Street Art Scene
Bodies of Two Men Found in Suitcases on Bristol Bridge, 24-Year-Old Arrested
Kate Middleton to Attend Wimbledon Men's Final Amid Cancer Recovery
Russia's Electronic Warfare Neutralizes Western Weapons in Ukraine
Trump Challenges Biden to Debate and Golf Match
Macron Accuses Israeli Minister of Election Interference
US Senator Highlights Weaknesses in Western Military Industry During Ukraine Conflict
George Clooney Urges Biden to Withdraw from Presidential Race
Political Shift in the UK: A Detailed Analysis of Labour's Victory and Future Prospects
Viktor Orbán's Peace Mission: A Diplomatic Controversy in the EU
India Advocates Peace and Prosperity: PM Modi's Speech in Austria
New UK PM Keir Starmer Reaffirms Strong Support for Ukraine at NATO Summit
Spain PM Pedro Sanchez Denounces Double Standards on Gaza at NATO Summit
UK Police Arrest Suspect in Crossbow Attack After Three Women Killed
Sunita Williams Safe on ISS, to Address Earth on July 10
Biden Affirms Commitment To Presidential Race
France Faces Political Turmoil and Airport Strikes Ahead of Paris Olympics 2024
Putin Hosts PM Modi for a Private Meeting
TSMC: The Taiwanese Chip Giant Valued Over $1 Trillion
Boeing Pleads Guilty Over 737 MAX Crashes
2024 Predicted to Be World's Hottest Year
Iran's President-Elect Masoud Pezeshkian Reiterates Support for Hezbollah
White House Denies Biden Being Treated for Parkinson's Disease
Biden to Meet New UK Prime Minister Keir Starmer
Biden Insists on Continuing Presidential Race Amid Criticism
UK Defence Minister Pledges Enhanced Support to Ukraine
French Prime Minister Gabriel Attal Resigns After Election Setback
Macron Faces New Political Challenges Despite Election Relief
France's Far-Right Falls Short in Parliamentary Elections
Key Figures in France's Left-Wing New Popular Front Bloc
England Reaches Euro 2024 Semifinals After Penalty Shootout Win
Rishi Sunak Apologizes After Historic Tory Defeat
Voter Discontent in Recent UK and French Elections
Trump was recorded attacking Biden: "I kicked the old pile of shit"