The heaviest-emitting companies have yet to take the steps needed to align their businesses with the world's mission to cap global warming, an investor group said on Wednesday, adding it expected shareholders to ramp up the pressure for action.

 

Climate Action 100+ is the leading group of investors pushing for faster action from the 166 companies responsible for over 80% of corporate emissions. Its more than 600 members manage a collective $65 trillion in assets.

 

However, the group has come under fire from campaigners for not pushing companies to do more, and its latest report, the group's second annual stocktake, prompted further criticism.

 

The CA100+ found only 17% of the companies had set medium-term targets in line with meeting the goal of capping warming at 1.5 degrees Celsius (2.7 Fahrenheit) above the pre-industrial average by 2050. The same number had produced a quantified decarbonisation strategy.

 

CA100+ said it wanted to see a "substantial shift" in target-setting by companies and expected investors to pressure boards in the upcoming season for annual general meetings, although it doesn't force members to vote a certain way.

 

"This AGM season is going to be really critical in terms of investors signalling whether they consider companies to have moved sufficiently far or fast in their climate strategies," said Stephanie Maier, Global Head of Sustainable and Impact Investment at GAM Investments and current chair of the global Climate Action 100+ Steering Committee.

 

Isobel Mitchell, Research & Engagement Manager at responsible investment NGO ShareAction, said CA100+ was far from achieving the change needed at companies and should set and require members to commit to minimum escalation expectations.

"Members need to be held to a higher standard if the initiative is to succeed," she added. (Reuters)