An investor coalition collectively managing over US$4 trillion in AuM have published a joint statement calling on the 13 largest chemical companies in Europe to set out a path to transition away from fossil fuels. Led by responsible investment NGO ShareAction, the statement said there are “clear steps” the companies can take to decarbonise their operations, including changing the make-up of their feedstocks to emissions-neutral materials instead of fossil fuels. Further, companies have been asked to eliminate woody biomass as an energy source and align their capital expenditure with a 1.5°C temperature pathway. “Europe’s chemical companies need to know that action on decarbonisation isn’t optional,” said Vincent Kaufmann, CEO of the Ethos Foundation. “The progress we have seen over the past 18 months, with some companies setting increasingly ambitious targets and transition plans, indicates that sustained investment engagement is important and effective.” The 15 investor signatories also include Legal and General Investment Management (LGIM) and Amundi. Kaufmann said: “Investors will continue to engage these companies to set credible 1.5°C-aligned strategies. This is the only way to ensure long-term profitability and competitiveness, as well as a liveable planet for the future.”
