Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Britain's biggest investor drops AIG, others from some funds over climate

Stock MarketsJun 15, 2021 13:11
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: A leaf sits on top of a pile of coal in Youngstown, Ohio, U.S., September 30, 2020. REUTERS/Shannon Stapleton/File Photo 2/2

By Simon Jessop and Elizabeth Howcroft

LONDON (Reuters) - Legal & General Investment Management, Britain's biggest asset manager, said on Tuesday it would drop four companies from a number of its funds over their "insufficient" response to the challenge of climate change, including U.S. insurer AIG (NYSE:AIG).

The others to be divested are Chinese lender Industrial and Commercial Bank of China, U.S. utility holding company PPL Corporation (NYSE:PPL) and Chinese dairy products holding company China Mengniu Dairy.

All had either not responded adequately to corporate engagement or had breached LGIM's "red lines" around involvement in the coal sector, their carbon disclosures or their links to deforestation, the money manager said in a statement.

They join nine other companies previously excluded for similar failings by LGIM, which manages 1.2 trillion pounds ($1.7 trillion) in assets, including U.S. oil major Exxon Mobil (NYSE:XOM) and Korea Electric Power Corporation.

As part of its Climate Impact Pledge launched in 2018, LGIM, part of insurer Legal & General, said the companies would be excluded from actively managed funds holding some 58 billion pounds in assets and all four would face voting sanctions using shares held across its entire equity book.

"We've been making consistent requests for a multi-year period ... (the companies are) really not meeting what we consider to be baseline minimum standard expectations in terms of climate change management across their sectors," said Yasmine Svan, Senior Sustainability Analyst at LGIM.

The exclusions follow a commitment by LGIM in October to expand the number of companies it engages with over climate change to 1,000 from 100.

That push was already starting to bear fruit, LGIM said on Tuesday, with 22% of the companies on its "priority" list now setting a target for net-zero carbon emissions.

During the current season for annual general meetings, LGIM said 130 companies would face votes against for not meeting its minimum climate change standards, mostly in the banking, insurance, real estate, tech and telecoms sectors.

As global policymakers gear up for the latest round of climate talks in Glasgow later this year, LGIM Chief Executive Michelle Scrimgeour said asset managers also needed to step up.

"Progress cannot be made by acting in isolation and we, as investors, have a real role to play in the responsible allocation of capital and acting as stewards to our investee companies to encourage greater progress to meet our overall sustainability goals."

Mengniu said that it "proactively supports the goal to achieve carbon neutrality by 2060, and to lead the industry in carbon neutrality commitment with regular emission reduction targets and roadmap disclosure".

"In 2021, Mengniu will complete detailed carbon emission data accounting of its subsidiaries, formulate carbon emission reduction action targets and plans, and thus reduce product carbon footprints," the company said.

($1 = 0.7056 pounds)

Britain's biggest investor drops AIG, others from some funds over climate
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email