A group of 150 international investors have united to demand BP and Shell disclose the risks associated with climate change that face their businesses—and the planet.
The coalition, which includes pension funds from the UK, US, and Northern Europe, has submitted a resolution to BP outlining the articles they expect it to reveal. These resolutions can be voted upon by all shareholders in the companies. A similar resolution was submitted to Shell last month.
“These resolutions put the global investment community to the test on climate change.” —Catherine Howarth, CEO, ShareActionThe resolutions include: Stress-testing their business models against the requirement to limit global warming to 2ºC, as agreed by governments at the UN Climate Change Conference in 2010; Reforming their bonus systems so they no longer reward climate-harming activities; Committing to reduce emissions and invest in renewable energy; Disclosing how their public policy plans align with climate change mitigation and risk.
Catherine Howarth, the CEO of ShareAction that helped to coordinate the demands, welcomed the support from the investors. Some 13 UK public sector pensions committed to the project, with three of the Swedish AP funds joining the campaign.
“Millions of pension savers worldwide will want their pension funds to vote in support, demonstrating true commitment to protecting their members from the risks of climate change,” said Howarth. “These resolutions put the global investment community to the test on climate change.”
The move comes as large international investors are considering the risk climate change poses to their portfolio.
In September, Mercer—with the backing of investor assets worth $1.5 trillion—launched a study into the effect of climate change on investment portfolios.
Last month, the giant Norwegian sovereign wealth fund was advised by one of its investment councils to reject calls to dump fossil fuel investments and concentrate instead on working with the worst offenders. The Rockefeller Fund, which made the majority of its assets through the sector, said it was dumping fossil fuels.
Today, musician Pharrell Williams and climate change activist Al Gore announced a series of concerts in June that will be held around the world to demand action from world leaders.
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