Fund giants pledge to quiz companies over climate change

Fund giants pledge to quiz companies over climate change

Some of the biggest asset managers in the City have vowed to quiz the companies in which they invest on the impact climate change will have on invest returns.

Fund houses including Schroders, HSBC, Hermes, Kames and M&G have compiled a list of the companies they want to hold accountable on how they address climate change issues.

Unilever, Peugeot and Coca Cola are among the companies that will be questioned about climate change policy.

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In total there are 289 investment firms with investible assets under management of £25.7trn taking part - ranging from Aviva Investors and Investec to the Church of England Pensions Board and several local government pension schemes.

Stephanie Maier, director of responsible investment at HSBC Global Asset Management said: "The focus companies represent both carbon intensive companies and those with significant opportunities to accelerate the transition directly at the regional and global level and help achieve the goal of the Paris Agreement of limiting global warming to well below two-degrees Celsius."

The initiative is known as Climate Action 100.

In December 2017 an initial list of 100 companies that the asset managers believe should be required to take action on climate change, and a further 61 companies have now been added.

The additional companies were nominated by the asset management firms.