Pension funds challenge European firms on climate lobbying

A group of investors controlling $2trn of assets has challenged 55 large European companies on their approach to climate lobbying.

The challenge was issued by investors including the Church of England pensions board, Legal & General Investment Management and Swedish pension fund AP7 after a report from the IPPC published earlier this month warned that current measures to combat climate change are not expected to be enough to prevent a material increase in global warming.

The group of 55 European companies due to their high greenhouse gas emissions and significant role in energy intensive sectors.

The companies were assessed by InfluenceMap, which monitors lobbying activity by companies. Companies were scored regarding their overall position on climate policy, the extent of their influence on policy-makers and whether their climate policies matched those of the trade associations acting on their behalf.

They asked companies to review relationships with key trade associations and lobbying organisations, to ensure their aim is to comply with the Paris climate agreement. Also, a set of ‘investor expectations’ outlining best practice on lobbying was sent to each company.

Adam Matthews, director of ethics & engagement at the Church of England pensions board, said: “Misleading and misaligned corporate lobbying practices undermine the ability of governments to act on climate change and meet the goals of the Paris Agreement. The influence of trade associations is often exerted behind closed doors and can be deeply insidious to public policy making on climate change. As the recent report from the IPCC clearly highlighted, the stakes are high and time is against us.”

Charlotta Dawidowski Sydstrand, of Sweden’s AP7 Pension Fund, said: “Lobbying on climate issues should be evaluated, managed and reported on transparently. We are hoping this will become a natural component of companies’ sustainability reporting.”