UK - The Local Authority Pension Fund Forum (LAPFF) is to launch a new shareholder engagement initiative to persuade leading companies to report on their carbon emissions in line with government guidelines.
The decision is based on research analysing the degree of compliance among FTSE 100 companies with guidelines produced by the Department for Environment, Food & Rural Affairs (DEFRA) originally in 1999 for reporting greenhouse gas emissions.
The LAPFF noted: “With less than half of the UK’s leading companies able to quantify and disclose their carbon emissions, institutional investors have a vital role to hold companies to account over their response to climate change and their provision of relevant information”.
The Forum intends to seek support from other institutional investor bodies known to be concerned about the potential impacts of climate change on investments, prior to contacting companies about their disclosures.
It will be seeking commitments from companies to provide reporting that is consistent and complete, as well as to work with other companies in their sectors to develop normalised reporting criteria.
Councillor Bob Sowman, LAPFF chairman, said: “Climate change creates a major potential risk for companies and investors in terms of future legislative and fiscal actions and changes in economic activity.
“It is in all our interests that companies seek to reduce their emissions and exposure to climate change risk as soon as possible.”
By Janet Du Chenne
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