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* Targets 30 of the world's biggest carbon emitters
* New programme of talks to last 1-3 years
* To escalate if no action taken, could divest
By Simon Jessop
LONDON, Feb 1 (Reuters) - Aviva Investors said on Monday it
could ditch its stock and bond holdings in 30 of the world's
biggest corporate emitters of carbon if their boards failed to
take sufficient action over climate change.
The move comes as asset managers including BlackRock
and Legal & General Investment Management look to
ratchet up the pressure on companies to form a plan to
transition to a lower-carbon economy, ahead of the next round of
global climate talks.
The British asset manager, part of insurer Aviva and
which manages 355 billion pounds in assets, said its Climate
Engagement Escalation Programme would target companies in
sectors including oil and gas, mining and utilities.
The programme would last between one and three years,
depending on the specifics of the company concerned. Aviva
declined to name the companies concerned, but is a big
shareholder in leading oil majors including Royal Dutch Shell
and BP.
Among the actions Aviva said it expects of the companies are
that they commit to net zero carbon emissions by 2050 and ensure
their plan to do so is in line with the Science-Based Targets
Initiative, an NGO-led group that signs off on corporate climate
plans.
The companies would need to integrate the climate goals into
their business strategy, including capital expenditure plans;
set short- and medium-term targets; align management pay with
the goals; and ensure lobbying efforts supported the goals.
"For our engagement approach to have impact, it must be
accompanied by a robust escalation process, including the
ultimate sanction of divestment," Mirza Baig, Global Head of ESG
Research and Stewardship, said in a statement.
Progress would be monitored on a six-month basis, with
escalation measures open to Aviva including voting against
directors at the companies' annual general meetings, filing
shareholder resolutions and working with stakeholder groups to
apply pressure, it said.
"This approach has the complete backing of our investment
teams," said David Cumming, Chief Investment Officer for
Equities at Aviva Investors.
"By fully integrating our approach across stewardship and
the investment teams, we will be able to maximise our ability to
influence the companies we have targeted towards positive
climate strategies."
(Reporting by Simon Jessop; editing by David Evans)
