A Sustainable Investment in Journalism

A sustainable business requires diverse revenue streams. ESG Investor now operates a subscription service as of Tuesday 14th May. To find out more please get in touch with our subscription team on subscriptions@esginvestor.net

AUM in Action

Engagement Nudges Caterpillar in “Right Direction” on Climate

Construction and mining equipment manufacturer Caterpillar has released its first annual Taskforce on Climate-related Financial Disclosures report and disclosed its Scope 3 (value chain) greenhouse gas emissions. The move follows the management-supported shareholder proposal presented by As You Sow and Amalgamated Bank in 2022, which received a 96.5% vote in favour of net zero target setting, and continued engagement from investor initiative Climate Action 100+ (CA100+). The disclosures are seen as a positive step forward, although they fall short of the proposal’s request for Paris-aligned near and long-term emission reduction targets, including all value chain emissions. Ivan Frishberg, Chief Sustainability Officer of Amalgamated Bank, said: These disclosures are a move in the right direction to meet shareholder expectations on climate risk management. We will continue to advocate for Caterpillar to fully align with a net-zero economy. Caterpillar’s calculation of Scope 3 emissions is a significant development, as an estimated 95% of the company’s total emissions inventory lies in its supply chain, including its customers’ use of products. The materiality of Caterpillar’s Scope 3 emissions highlights the company’s significant challenge and opportunity – to develop a business plan responsive to global climate imperatives and a decarbonizing economy, said Bill Davis, Stance Capital Managing Director and CA100+ Lead for Caterpillar. While welcoming Caterpillar’s disclosure of Scope 3 emissions, Daniel Stewart, As You Sow’s Energy and Climate Programme Manager, said: It is essential that the company now take the next step and include these emissions in their emission reduction targets. Shareholders from CA100+ will continue to engage Caterpillar in fulfilling the 2022 proposal and creating a climate transition plan that aligns with their expectations and the CA100+ Net Zero Company Benchmark. 

The practical information hub for asset owners looking to invest successfully and sustainably for the long term. As best practice evolves, we will share the news, insights and data to guide asset owners on their individual journey to ESG integration.

Copyright © 2024 ESG Investor Ltd. Company No. 12893343. ESG Investor Ltd, Fox Court, 14 Grays Inn Road, London, WC1X 8HN

To Top