Members of Climate Action 100+ Steering Committee released the following statement in response to Shell’s Net Carbon Footprint targets:
Anne Simpson, Climate Action 100+ Steering Committee Chair and Investment Director, CalPERS, explains:
“We applaud the joint statement by Shell and lead investors for Climate Action 100+. The commitment by Shell to fully respond to the engagement shows the value of dialogue and global partnership to deliver on the goals of the Paris agreement on climate change. Shell is setting the pace, and we look forward to other major companies following their lead.”
Stephanie Pfeifer, Chief Executive, Institutional Investors Group on Climate Change (IIGCC) and a member of the Climate Action 100+ global Steering Committee, explains:
“IIGCC welcomes and is glad to have supported this first of its kind statement between investors and an oil and gas major. Short- and long-term climate targets, linked to remuneration and a clear commitment on lobbying practices, provide a model for others across the sector to follow.”
“As UN climate talks get underway in Poland this week, the importance of the oil and gas sector working to a well below 2°C future couldn’t be clearer. It is now down to the sector to demonstrate they understand this, as the investors with $32 trillion in assets involved in Climate Action 100+ will continue to make clear their expectations.
“A key objective of Climate Action 100+ is for companies to set long-term emission reduction targets in line with the goals of the Paris Agreement. The framework laid out in the joint statement provides a robust system to track progress over time, including on short-term targets, annual reporting and plans to report within financial filings. Investors working through IIGCC will continue to evaluate Shell’s progress closely to ensure that it continues to increase ambition. We also commend Shell for agreeing to review its lobbying activities in line with IIGCC’s members’ expectations.”
Mindy Lubber, Chief Executive Officer and President, Ceres and co-Chair of the Climate Action 100+ global Steering Committee, explains:
“The Shell agreement is an important step in the right direction as it ties executive compensation to the company’s efforts to reduce greenhouse gas emissions, including emissions related to product use.This commitment demonstrates the power of collective global investor engagement. Climate Action 100+ investors will now use the commitment to raise the bar for the oil and gas industry as a whole.”
Emma Herd, Chief Executive Officer of the Investor Group on Climate Change (IGCC) and a member of the Climate Action 100+ Steering Committee, said:
“This announcement demonstrates the potential for global investor collaboration to deliver concrete outcomes. Investors supporting the Climate Action 100+ in all regions can now pick this up and take it back to companies they are engaging with as a model of what can be achieved when we work together to advocate for action on climate change.”
Rebecca Mikula-Wright, Director of the Asia Investor Group on Climate Change (AIGCC) and a member of the Climate Action 100+ Steering Committee, said:
”This announcement demonstrates what is possible from oil and gas companies as they work on their low carbon transition plans. It puts all companies on notice, including those in Asia about what investors expectations are of this sector and provides a clear system for investors to track progress and ask for increased ambition.”
Fiona Reynolds, a member of the global Climate Action 100+ Steering Committee and CEO of the Principles for Responsible Investment (PRI), said:
“Investor engagement is undoubtedly playing a major role in changing corporate attitudes on climate change and making it clear that urgent action on transitioning from a high to a low carbon scenario is needed. This is a welcome development form BP and we hope this will open the door to more companies in carbon intensive industries to commit to setting targets for reducing emissions.”
Also see here for a statement from the Church of England Pensions Board along with comment from other investors involved attached.
See joint Shell and Climate Action 100+ statement here.
Climate Action 100+ is delivered through a set of Engagement Working Groups operating across regions and sectors. IIGCC lead the European Engagement Group.
ABOUT CLIMATE ACTION 100+
Climate Action 100+ is an investor initiative to ensure the world’s largest corporate greenhouse gas emitters take necessary action on climate change. More than 450 investors with more than $40 trillion in assets collectively under management are engaging companies on improving governance, curbing emissions and strengthening climate-related financial disclosures. The companies include 100 ‘systemically important emitters’, accounting for two-thirds of annual global industrial emissions, alongside more than 60 others with significant opportunity to drive the clean energy transition.
Launched in December 2017, Climate Action 100+ is coordinated by five partner organisations: Asia Investor Group on Climate Change (AIGCC); Ceres (Ceres); Investor Group on Climate Change (IGCC); Institutional Investors Group on Climate Change (IIGCC) and Principles for Responsible Investment (PRI). These organisations, along with five investor representatives from AustralianSuper, California Public Employees’ Retirement System (CalPERS), HSBC Global Asset Management, Ircantec and Sumitomo Mitsui Trust Asset Management, form the global Steering Committee for the initiative. Follow us on Twitter: @ActOnClimate100.
About IIGCC
The Institutional Investors Group on Climate Change (IIGCC) is the European forum for investor collaboration on climate change and the voice of investors taking action for a prosperous, low-carbon future. IIGCC has more than 160 members, mainly pension funds and asset managers, across 11 countries, with over €21 trillion assets under management.