MELBOURNE, Sept 29 - Reuters - A group of six investors with a combined $4 trillion of assets under management, including Fidelity International, said on Wednesday it aims to step up collaboration with big Asian companies like banks and energy producers to ensure they have a road map to meet climate change targets.
Initial engagement will focus on carbon risk and coal at banks and coal-exposed power companies, the group of investors facilitated by Singapore-based advisor Asia Research Engagement ARE said in a statement.
The move comes as investors become more active in the field of environmental, social and corporate governance, helping to shape firms' climate commitments to better manage that risk for their clients. Determination steps taken by ESG-related shareholders include backing activist shareholder resolutions and voting a board member, and remuneration.
Royal Dutch Shell RDSa. L s annual shareholder meeting in May, nearly a third of shareholders rejected a resolution filed by an activist group but backed by the board. The company wants to set low - and medium-term targets to reduce absolute emissions.
The six investors include BMO Global Asset Management EMEA, Fidelity International, Legal General Investment Management, Board Group LAPFF Aviva Investors and Dutch Pension Fund Forum PGGM.
Over the past year we have seen encouraging developments in sustainability-related business practices and policies, such as a raft of net zero announcements, Mirza Baig, Global Head of ESG investments at Aviva Investors, said in the statement.
In reality, there is a stark mismatch between where we are today and what is required to ensure that the Paris Agreement on climate change goals are met, he said. What is the huge opportunity for Asian companies to take the lead in solving the climate crisis? The Group has already begun dealing with companies involving Huaneng and Huadian power firms in China did not immediately respond to requests for comment.
The investor group will encourage companies such as banks to commit concrete steps like exiting from financing the most carbon-intensive fossil fuels and stopping energy growth and related infrastructure.
Measures would also include encouraging Asian Power utilities to set out plans to bring their businesses in line with Paris Agreement targets.