GLOBAL - A group of 143 institutional investors including a number of pension fund giants with assets of US$20trn under management have collaborated to request the 500 largest companies in the world to disclose investment-relevant information concerning their greenhouse gas emissions.
The group – which includes the e160bn Dutch fund ABP, the US$114bn California State Teachers Retirement System and the £20bn UK Universities Superannuation Scheme – wrote to the companies, rated the largest by market capitalisation, asking them to respond within four months. The information received will be used to compile a report to be distributed to participating institutional investors.
The initiative, coordinated by the Carbon Disclosure Project, is the third time such a request has been made but this time involves a larger group of investors.
Commenting on the collaboration, Paul Dickinson, project coordinator, said: “The numerous indications of accelerating human induced climate change make it clear that there are business risks and opportunities that have implications for the value of investments in corporations worldwide.
“This makes it necessary for investors to improve their understanding of climate change risks and opportunities. The data to assess these issues is not always available, sometimes lacks comparability or is of poor quality. The Carbon Disclosure Project aims to encourage the development of a common emissions measurement methodology and to facilitate its integration into general investment analysis.
“The signatories recognise that companies face pressure to comply with constant demands for information and so have joined in this single call for information to reduce the number of requests.”
Corporations that previously provided responses are invited to report progress and companies that previously did not respond have been asked again.
Other pension funds involved include the first and second Swedish national AP funds, the UK-based Environment Agency pension funds, the New York City retirement funds, Ontario Municipal Employees Retirement System, Ontario Teachers Pension Plan and the US-based Catholic Superannuation Fund.
PP has compiled a list of what to watch out for over the coming months.
Canada Life has signed a £351m bulk annuity contract insuring the pensioner liabilities of 2,510 members and dependents in the AA UK Pension Scheme.
In this week's Pensions Buzz, we want to know if you believe there is ever a case for combining retirement savings products with other savings products, and if the PPF levy for sponsorless schemes is appropriate for DB consolidators.