Britain’s leading asset manager to divest ExxonMobil, Korea Electric from some of its funds

first_imgBritain’s leading asset manager to divest ExxonMobil, Korea Electric from some of its funds FacebookTwitterLinkedInEmailPrint分享Reuters:Britain’s biggest asset manager has removed ExxonMobil and four more companies from its 5 billion pounds ($6.3 billion) Future World funds, and said it would vote against their chairs for failing to confront the threats posed by climate change.Legal & General Investment Management (LGIM), the fund arm of insurer Legal & General which has 1 trillion pounds under management, has been among the most vocal asset managers on climate risks, and will also divest from Hormel Foods, Korea Electric Power Corp, Kroger and Metlife.The divestment applies only to LGIM’s Future World funds, which it says are set up for clients who want to express a conviction on environmental, social and governance themes.“In all other LGIM (non-Future World) funds that remain invested in those companies that have not met our criteria, we will vote against the election of the chair of the board,” said Meryam Omi, head of sustainability and responsible investment strategy at LGIM. “We can vote against the chair on any number of issues, so to do so because of a single issue such as climate change sends a powerful message to companies that they should be raising their standards in this area.”As part of its Climate Impact Pledge, launched in 2016, LGIM has sought to engage with the largest companies in the oil and gas, mining, electric utilities, autos, food retail and financial sectors on climate change and said it would take action.“ExxonMobil Corporation has not met our key minimum requirements, including on emissions reporting and targets,” LGIM said in its report. LGIM said Exxon lagged behind European peers such as Equinor, BP and Shell which better disclose their company’s potential climate risks.More: Investor LGIM dumps ExxonMobil from its Future World fundslast_img

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