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L&G asset manager vows to oust chairs of energy, auto firms over climate efforts

The investment management unit of Legal & General Group PLC said it will vote to dislodge eight global firms' board chairmen who have not responded to climate change threats, Reuters reported June 11.

Legal & General Investment Management, or LGIM, said it also plans to dispose of its shares in the companies owned via its £5 billion Future World Funds index funds range. The eight companies are China Construction Bank Corp., Dominion Energy Inc., Japan Post Holdings Co. Ltd., Occidental Petroleum Corp., Rosneft Oil Co. PJSC, Subaru Corp., Loblaw Cos. Ltd. and Sysco Corp.

Reuters quoted Meryam Omi, LGIM's head of sustainability and responsible investment strategy, as saying: "We're going to keep ratcheting up the minimum standards and our expectations from the companies. It's not a finished business."

The company said it has already begun voting against the re-election of the chairs of several of these firms at their annual general meetings.

LGIM, however, will keep investing in these companies through its other funds, according to the report.

Three of the firms that LGIM cited — Occidental Petroleum, Loblaw and Sysco — defended their efforts, when contacted by Reuters, to reduce their CO2 emissions. Dominion, Rosneft and Subaru did not immediately respond, and China Construction Bank and Japan Post Holdings could not be reached for comment, Reuters said.