GLENCORE is one of 36 companies that has been asked by a group of investors to produce ‘Paris-aligned accounts’ that reflect the impact of climate control, said Bloomberg News.
The Institutional Investors Group on Climate Change, which has JP Morgan Asset Management among its ranks, requested companies such as Airbus, BMW and Glencore to “‘properly reflect the implications of global commitments to limit temperature increases” as part of the Paris climate agreement.
Companies with particular exposure to “decarbonisation risks” as economies transition away from fossil fuels had been identified, said Bloomberg News.
“Companies can no longer afford to ignore what climate change means for their business,” said Stephanie Pfeifer, CEO of IIGCC. “Investors need financial impacts of getting onto a net-zero pathway to be booked and acted on,” he said.
Accounts should include assumptions and estimates that are consistent with the target of net-zero carbon emissions by 2050, and consider the implications of a warming world on their capacity to pay dividends, said Bloomberg News.
“Paris-aligned accounts are amongst the most important changes that will drive systemwide capital redeployment,” Natasha Landell-Mills, head of stewardship at Sarasin & Partners LLP, a member of the investor group, told the newswire.
“Put simply, we need Paris-aligned accounts to drive Paris-aligned behaviour, thereby protecting capital for all. This is hopefully something that all companies and their shareholders can coalesce around.”