ESG spotlight: A roundup of the latest news on environmental, social and governance initiatives, including an investor coalition applying pressure on companies over their climate reporting, and the Church of England Pensions Board raising the heat on Volkswagen.
Audit committee chairs put on notice
Thirty-four investors with combined assets of $7.1tn (£5.4tn) have told 17 of Europe’s largest businesses to improve their reporting standards. Audit committee chairs at groups including Volkswagen, Shell and Rio Tinto were asked to explain why their companies had fallen beneath expectations surrounding climate-linked accounting disclosures, and were warned that a failure to improve could prompt an increase in voting against their appointments at upcoming annual meetings. “Investors cannot understand the true value of a company without knowing the embedded climate risks,” said Natasha Landell-Mills, partner and head of stewardship at Sarasin & Partners. “Company financial statements that leave out climate risks are thus not just potentially failing to meet statutory requirements, but will drive too much investment into carbon-intensive activities. In simple terms, poor accounting is exacerbating the perilous state of our climate.”
CofE Pensions Board challenges VW on climate lobbying
The £3.7bn Church of England Pensions Board is co-filing a shareholder amendment that calls on car manufacturer Volkswagen to explain how its lobbying activities help to address climate risks. According to an announcement on the pension board’s website, Volkswagen is facing a shareholder proposal from seven European investors that are urging the company to explain how its lobbying activities help to address climate risks. Led by the Church of England Pensions Board and the SKr966.9bn (£78bn) AP7, and advised by Hausfeld, the investors have tabled an amendment to the company’s articles of association, intended to ensure that future sustainability reporting includes an assessment of their lobbying’s impact and alignment with its climate goals. “The shareholders’ escalation comes after more than three years of dialogue with VW which have not yielded any significant improvement in the company’s position,” the announcement stated.
This article originally appeared on MandateWire.com
