British fund industry warns companies on climate risk

Source(s): Thomson Reuters
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By Simon Jessop

Britain’s investment industry trade body has warned companies ahead of their 2020 annual general meetings that they must disclose more about how they are handling climate change risk.

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It wants companies to explain in their annual report the impact climate change will have on their business model and how these risks are being measured and managed, echoing comments from incoming United Nations climate envoy Mark Carney.

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“Climate change could result in a significant loss of value in companies if risks are not effectively measured and managed, ultimately hitting savers’ pockets,” the Investment Association’s Director for Stewardship and Corporate Governance Andrew Ninian said in a statement.

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The IA’s voting advisory service IVIS, which helps members decide how to vote at each company’s annual general meeting, the bulk of which will be held in the next few months, would track each company’s progress.

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