A new discussion paper from advisory body, the PRI (Principles for Responsible Investment), has found that there is a strong case for asset owners to play an effective role in reducing emissions.
In Reducing emissions across the portfolio, shareholders are encouraged to:
- Understand their carbon-risk exposure by measuring their portfolio carbon footprint, and analysing and reviewing it with portfolio managers;
- Mitigate this by setting a goal to reduce emissions, as appropriate for their organisation;
- Engage directly with policymakers and companies on transitioning to a low-carbon environment;
- Increase investments in clean energy and other carbon alternatives.
The paper notes that some shareholders are already taking concrete actions.
Examples include the “Aiming for A” coalition shareholder resolutions on climate change.