trending Market Intelligence /marketintelligence/en/news-insights/trending/q0fnR6FtCsL0fm9cg-O_zA2 content esgSubNav
In This List

200 investors urge dozens of US companies to disclose climate-related lobbying

Podcast

Next in Tech | Episode 49: Carbon reduction in cloud

Blog

Using ESG Analysis to Support a Sustainable Future

Research

US utility commissioners: Who they are and how they impact regulation

Blog

Q&A: Datacenters: Energy Hogs or Sustainability Helpers?


200 investors urge dozens of US companies to disclose climate-related lobbying

A number of investors are stepping up their pressure on key U.S. companies to disclose their lobbying activities, specifically the extent to which those strategies align with climate change-related goals.

In a Sept. 16 letter to 47 U.S. companies, 200 institutional investors and service providers with a combined $6.5 trillion in assets under management said those companies "have significant influence on climate and energy policies and we are concerned about lobbying activities that are inconsistent with addressing the risks posed by climate change."

The letter, signed by large pension funds, mutual funds, asset management firms, religious investors, foundations and service providers, asked the companies to review and report their own lobbying activities as well as those of the trade associations and other politically active organizations to which the companies belong.

Some of those member organizations "often lobby against public policy initiatives addressing the climate crisis," the letter said. If any of those trade associations or business groups are unwilling or unable "to demonstrate alignment with the Paris Agreement [on climate change], consider taking the steps necessary to disassociate your company from these policies."

"We are convinced that unabated climate change will negatively impact our clients, plan beneficiaries, and the value of our portfolios," said the letter signed by entities such as BNP Paribas Asset Management, Walden Asset Management, California Public Employees' Retirement System, California State Teachers' Retirement System, New York State Common Retirement Fund and Wespath Benefits and Investments. Some of the signatories to the letter, such as New York City Comptroller Scott Stringer, are among the asset managers that have pressed companies to disclose their lobbying activities through the shareholder resolution process.

The letter noted that the pledges of national governments to tackle climate change fall far short of what is needed to meet the goals of the Paris Agreement. "Companies have an important and constructive role to play in enabling policy-makers to close the 'ambition gap' which would also contribute positively to the long-term value of our investment portfolios," the letter said.

The letter builds on the Climate Action 100+ initiative of a broader pool of investors to press more than 160 companies to report and act on their climate change-related risks. The Climate Action 100+ initiative does not specifically seek lobbying disclosures.

The letter targeted mostly energy sector companies, including Berkshire Hathaway Inc., American Electric Power Co. Inc., Chevron Corp., Dominion Energy Inc., Exxon Mobil Corp., Southern Co. and NRG Energy Inc. Companies in the metals and mining, consumer and transportation sectors are also on the list, including The Procter & Gamble Co., Walmart Inc., General Electric Co., Ford Motor Co., Coca-Cola Co. and Southern Copper Corp.