Ask companies to disclose lobbying

Company engagement may not always be easy but active asset managers must use their voice to press for direct action in confronting climate change

Active ownership means engaging with the companies we own on behalf of our investors to address the harmful behaviours that are perpetuating carbon emissions. We need all hands on deck to deliver planet stability; and this means getting those pulling the wrong way to change course.

One important, but often overlooked, aspect of corporate behaviour that can create roadblocks to action on climate change is lobbying. Often hidden from view, lobbying by large companies that currently benefit from the fossil fuel economy plays an insidious role in reducing the ability of policymakers to act robustly.

Shareholders can play a role in seeking commitments from their companies that they will not undertake any lobbying that runs contrary to the Paris Agreement, and the lobbying they do is disclosed.

Read the full comment in ESG Clarity’s January digital magazine.

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Natasha Turner

Natasha was global editor at ESG Clarity, part of Mark Allen Financial, and a financial journalist for seven years. She has been shortlisted for Story of the Year and Investment Journalist of the Year...