Six investors with a combined $4 trillion of assets under management aim to step up engagement with major Asian banks, and energy producers to shape their climate commitments and encourage a rapid shift from fossil fuels.
The six investors include BMO Global Asset Management EMEA, Fidelity International, Dutch pension fund PGGM, Britain-based Local Authority Pension Fund Forum (LAPFF), Aviva Investors and Legal & General Investment Management.
Environmental, social and corporate (ESG) governance has seen a surge in interest from investors and asset managers. They can better manage risk for their clients, keeping in line with climate targets.
With a growing focus on net-zero targets, business practices need to match the Paris Agreement goals. Some steps have included backing activist shareholder resolutions and voting on board members and remuneration.
So far, there has been a stark mismatch between what is needed and what is being done. Will Asian companies lead by example in tackling the climate crisis?