www.theguardian.com/business/2019/dec/02/directors-climate-disclosures-tci-hedge-fund Punish directors who don’t make climate disclosures, says hedge fund
TCI threatens to dump stakes in firms that do not have plan to reduce emissions
Mon 2 Dec 2019 10.10 GMTFirst published on Mon 2 Dec 2019 09.05 GMT
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The activist hedge fund TCI plans to target directors of companies that fail to disclose their carbon emissions, in the latest sign that investors are putting more pressure on boardrooms to step up their disclosure on climate risks.
TCI, which manages assets worth $28bn (£22bn), has written to companies including Airbus, Moody’s and Google parent Alphabet warning them to improve their pollution disclosures or it would vote against their directors. Advertisement
Letters to those companies published on the TCI website
The hedge fund also warned it would vote against auditors where the annual report and accounts failed to report material climate risks. It threatened to dump investments where a “portfolio company refuses to disclose emissions and does not have a credible plan for their reduction”.
Sir Christopher Hohn, the billionaire hedge fund manager who set up and runs TCI, told the Financial Times
The UK government is working with regulators in London to decide whether mandatory reporting on climate risks
This summer the UK became the first G7 country to sign into law a commitment to reach net zero carbon emissions by 2050
Hohn accused BlackRock, the world’s largest fund manager, of “greenwash” because it does not require emissions disclosures. “Asset owners should fire asset managers that do not require such disclosure,” he said.
“Investors don’t need to wait on regulators who are asleep at the switch and unwilling or unable to regulate emissions properly,” he said. “They can use their voting power to force change on companies who refuse to take their environmental emissions seriously. Investors have the power, and they have to use it.” Sign up to the daily Business Today email or follow Guardian Business on Twitter at @BusinessDesk
TCI’s move comes as the world’s governments meet in Madrid this week for the UN climate summit
A new report shows almost half of UK boards (46%) spent zero hours discussing the climate emergency this year, and they were the least likely of all the countries studied to do so.
Almost a third of UK boards (32%) feel little or no responsibility for the climate crisis, according to a global survey of 640 chairs and non-executive directors by recruitment firm Harvey Nash and London Business School’s Leadership Institute