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Add to Preferred SourcesA group of investors are calling on leading European construction material firms to take necessary steps to secure their future in the face of climate change. This includes committing to achieve net-zero emissions no later than 2050.
The investors are acting as members of the Institutional Investors Group on Climate Change (IIGCC) and participants in Climate Action 100+, a global shareholder engagement initiative involving more than 320 investors with over $33 trillion in assets collectively under management.
The measures they expect the companies to take are set out in ‘Investor Expectations of Companies in the Construction Materials Sector’, published by IIGCC.
As the most widely used construction material globally, cement is the source of 7 percent of global man-made carbon dioxide emissions. If the cement industry were a country, it would be the third-largest global emitter, behind only China and the US.
Developed in line with the goals of Climate Action 100+, the report will also inform investor engagement with other construction material firms on the initiative’s global list of 161 focus companies. The expectations shared cover the steps investors expect companies to take to manage climate risks and accelerate action to decarbonise in line with the goals of the Paris Agreement. The construction materials industry is exposed to both transition and physical risks resulting from climate change. This is especially acute for companies that manufacture cement.
Governments have committed to limiting global warming to well below 2°C with ratification of the Paris Agreement. In line with subsequent policy and market responses, the cement sector will be exposed to significant risks if it fails to anticipate and keep pace with necessary reductions in greenhouse gas emissions.
Original source: IIGCC
Published on 22 July 2019