The companies have announced plans to work together and engage with major Asian companies to encourage action on climate change.
With a combined total of US$4 trillion ($5.5 trillion) in assets under management, the members of the new Asia Transition Platform will initially focus on carbon risk and coal at financial institutions and coal-exposed power companies in the region.
The group is made up of BMO Global Asset Management EMEA, Fidelity International, Dutch pension fund PGGM, the UK’s Local Authority Pension Fund Forum, Aviva Investors and Legal & General Investment Management, and is coordinated by the Singapore firm Asia Research & Engagement.
“Over the past year we have seen encouraging developments in sustainability-related business practices and policies, such as a raft of net zero announcements,” said the global head of ESG investments at Aviva Investors, Mirza Baig.
“In reality, there is still a stark mismatch between where we are today and what is required to ensure that the objectives of the Paris Agreement (on climate change goals) are met.”
The group said it had already initiated engagement with top Chinese power generators Huaneng and Huadian, with an aim to engage with at least 50 companies throughout Asia over the next three years.
Among the goals of the group are to encourage power companies to develop plans so they can meet the targets of the Paris Agreement and for banks to halt financing related to the most carbon-intensive fossil fuels.
“There is a huge opportunity for Asian companies to take the lead in tackling the climate emergency,” added Mr Baig.
Jon Bragg
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.
