* 60 top investors write open letter to the industry
* Comes as shareholders set to vote at Shell AGM
* Want transparency on plans to move to low-carbon world
By Simon Jessop
LONDON, May 18 (Reuters) - Sixty global investors on Fridaycalled on the oil and gas industry to do more to tackle climatechange, ratcheting up pressure on company boards ahead ofseveral high profile annual shareholder meetings.
Companies needed to be more transparent about how they planto change their operations as part of the global shift to alow-carbon economy, necessary to meet the terms of the 2015Paris climate agreement to keep global warming below 2 degrees.
"As long-term investors, representing more than $10.4trillion in assets, the case for action on climate change isclear," the investors said in an open letter published in theFinancial Times newspaper.
"We are keenly aware of the importance of moving to alow-carbon future for the sustainability of the global economyand prosperity of our clients," they said, adding relatedregulations would create additional costs to the industry.
Among leading investors to sign the letter were AberdeenStandard Investments, AXA Investment Managers, FidelityInternational, Legal & General Investment Management, Schrodersand Kames Capital.
The oil and gas industry and its products account for 50percent of global carbon emissions, and so the most effectivestrategy for companies to take was to reduce the carbon impactof its products, the letter said.
"The capital allocation decisions they make today areimportant to determine how likely they are to survive thattransition," it added.
The issue has formed a central part of corporate engagementfor many of the investors ahead of the season for annual generalmeetings.
BP holds its AGM on Monday, with fellow oil majorRoyal Dutch Shell on Tuesday, at which shareholders areset to vote on whether the company should set firm carbonemissions targets linked to the Paris deal.
"Regardless of the result at the Shell AGM, we stronglyencourage all companies in this sector to clarify how they seetheir future in a low-carbon world.
"This should involve making concrete commitments tosubstantially reduce carbon emissions, assessing the impact ofemissions from the use of their products and explaining how theinvestments they make are compatible with a pathway towards theParis goal."
The letter also urged policymakers to take "clearer and morecollective action" to implement regulation supporting investmentin lower-carbon technologies and would talk with companies andmaintain oversight of their actions.
"The broad support for this letter sends one clear message-investors are embracing their responsibility for supporting theParis agreement. It is time for the entire oil and gas industryto do the same," a spokesman for Newton Investment Management,one of the signatories, told Reuters.(Reporting by Simon Jessop, editing by Louise Heavens)
