Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]Case study: net-zero targets
Our advocacy for net-zero targets that incentivise real-world, inclusive decarbonisation has included discussions with the Institutional Investors Group on Climate Change (IGCC). We have engaged with the CEO and Chair of the IIGCC on how the net-zero target framework can be adjusted to: (1) ensure that the targets do not result in divestment from heavy emitters, but rather support engagement to catalyse transition; and (2) encourage investment into emerging markets to fund their transition. We have proposed adjustments to the wording in the framework.
Case study: FCA SDR consultation
In January 2022, we responded to the FCA's discussion paper on Sustainability Disclosure Requirements (SDR), regarding which companies will be required to report on their sustainability risks, opportunities and impacts. In our opinion, policies should be underpinned by principle. We proposed to the FCA a focus on a principled 'what a manager does' rather than a data-driven 'how much a manager does'. Although we support the intent of the disclosure requirements, we raised a number of issues and, as a general point, asked that regulatory intervention on sustainable finance improves standardisation across jurisdictions.
Case study: South Africa's decarbonisation commitments
Through late 2020 and 2021, we engaged with entities in South Africa, including the electricity utility Eskom, the large banks and government departments, to encourage the adoption of a decarbonisation pathway aligned to 1.5 degrees. In October 2021, the South African cabinet announced the adoption of an NDC (nationally determined contribution) that would align South Africa to a 'high road' of 1.5 degrees and a 'low road' of 1.8 degrees, depending on the funding available. This was a considerable improvement from the previous target and positions South Africa's NDC well relative to other emerging markets.