AUM in Action

Investors Urge ISS to Improve Climate Advice  

The Institutional Investors Group on Climate Change’s (IIGCC) Proxy Advisor Working Group has called on proxy advisor ISS to further enhance its climate-related advice. In a letter to ISS, supported by 36 investor members of IIGCC, it asks ISS to provide a speciality net zero policy for the 2024 proxy season; and to further integrate climate into its proxy voting recommendations on a more robust and consistent basis via its benchmark policy, one of the most widely used voting recommendation services. ISS launched its annual consultation on the ISS Benchmark Policy earlier this week. In the letter, investors call for progress on four areas ahead of the 2024 proxy season: board accountability, transition plans, shareholder resolutions, and Climate Action 100+ Net Zero Company Benchmark alignment. Edward Mason, Director of Engagement, Generation Investment Management and Chair of IIGCC’s Proxy Advisor Working Group, said: “The climate crisis is changing investment, and investment service providers need to change with their clients. It is now four years since the first investor net zero alliance was established. Nearly 500 investors have made net zero commitments. Yet investors are still waiting for the major proxy advisors to offer advice that properly integrates assessment of companies’ performance on climate change. It’s time for that to change.” 

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 © 2023 ESG Investor Ltd. Company No. 12893343. ESG Investor Ltd, Fox Court, 14 Grays Inn Road, London, WC1X 8HN

To Top