LGPS funds are set to put more pressure on large corporates over climate risk as their representative body beefs up its research facilities.
The Local Authority Pensions Fund Forum (LAPFF) has clinched a deal with specialist researchers that will create an armoury of information to bolster the forum’s ability to challenge companies over climate risk disclosures.
The 50/50 Project, which focuses on the 50 largest public companies with significant carbon footprints, will arm LAPFF with research on specific company climate risks and opportunities, as well as the state of boardroom climate knowledge. In particular the 50/50 Project will help the forum demand the appointment of directors with climate expertise.
The deal comes on the back of an historic victory for shareholders of ExxonMobil, including the Church of England, who won a vote at the end of May forcing the oil giant to publish more information about the effects of climate change on its business.
Cllr Kieran Quinn, chairman of the LAPFF, said: “Recent weeks have shown the power shareholders can exert on companies to take seriously the risks posed by climate change.
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“Coming on the back on these successes and several years of effective collaborations, this partnership marks a new era in the forum’s efforts to safeguard shareholder value against climate-change risk.”
LGPS funds have already had some success on climate at Shell, BP, Anglo American, Glencore and Rio Tinto by co-filing ‘Aiming for A’ resolutions which call on companies to make changes to the way they report their strategies for managing climate risks and opportunities.
The Aiming for A project was founded by CCLA, but participants include the LAPFF, The Church of England’s three funds, Rathbone Greenbank Investments, Sarasin & Partners, Hermes Investment Management (on behalf of its stewardship services clients), and the Pensions Trust.
50/50 Project has been instrumental in winning the right for shareholders to nominate directors for company boards through “proxy access” in over half of S&P500 companies, including ExxonMobil. Last year, following a shareholder vote, the oil company appointed a climate expert to its board.
