Two influential groups of investment companies are pressurising major corporates to publish viable net zero transition plans.
Ninety-three members of the Institutional Investors Group on Climate Change have written to 107 companies across the automotive, aviation, cement, chemicals, food and agriculture, and oil and gas sectors in a bid to see credible strategies for cutting emissions.
Fidelity International, Schroders and Scottish Widows are among the investors calling on corporates to set net zero targets that cover all emissions scopes, especially Scope 3. The investors have also asked companies how they will track and report on emission cuts, and whether their transition plans will be put to a shareholder vote.
A second group of investors, convened by campaigners ShareAction and managing more than US$4trn of assets, has written to 13 of Europe’s largest chemicals companies, urging them to raise their climate ambitions and show that they are cutting emissions rapidly.
ShareAction says the drive towards net zero is “not optional” for the chemicals sector and that major European companies in the industry are not moving fast enough to help the world limit global warming to 1.5°C, as set out under the Paris Agreement.
