Major U.S. institutional investors have asked 47 large corporations that emit greenhouse gas pollutants to make their lobbying efforts more transparent, the investors announced today.
In a letter directed to the CEOs and chairs of the board of directors of the corporations, the investors asked for information on how the corporations’ lobbying efforts align with efforts to reduce climate change.
The 47 major U.S.-based greenhouse gas emitters are being asked to disclose how their climate lobbying aligns with the most ambitious goals of the Paris Climate Accord and science-based climate policies, the investors said through Ceres, a sustainability nonprofit organization that works with influential investors and companies.
The investors urged companies to ensure all lobbying activities, both direct lobbying by the companies and indirect lobbying through their trade associations, are aligned with the Paris Climate Accord and to take action when there is misalignment. The investors asked companies to establish strong governance of their climate lobbying activities and provide full public transparency of those activities.
“As long-term investors, we need to see our portfolio companies address the financial risks posed by climate change. We are concerned about the impact of climate change on our investments, as well as its impact on the economy as a whole,” New York State Comptroller Thomas P. DiNapoli, one of the signers of the letter, said in a statement.
Other signers of the letter include BNP Paribas Asset Management, Boston Trust Walden, the California Public Employees Retirement System, the California State Teachers’ Retirement System, Mercy Investment Services, the New York City Comptroller’s Office, the New York State Common Retirement Fund and Wespath Benefits & Investments.
The 47 companies include the oil and gas, electric power, transportation, and food and beverage sectors.
“The urgency of the climate crisis means that companies must not only take bold in-house actions to reduce emissions to net-zero and improve governance of climate risk, they must also look beyond their four walls and publicly advocate for federal and state policies to mitigate climate change,” Mindy Lubber, Ceres CEO and president, said in a statement.
During the 2020 U.S. proxy season, shareholder proposals asking companies to disclose how their climate lobbying aligns with the goals of the Paris accord received record high investor support, according to the investor.