Company Directors held accountable for failing on climate: Aviva Investors has remarked it will hold boards as well as individual directors responsible for error to make good climate & environmental agreements.
Through a letter given to the chairs of firms it invests in, the UK investment major laid out its stewardship primary concerns for the year, which contains companies accepting a goal for net zero emissions by 2050 as well as pledging to the Science-based Targets initiative (SBTi).
Aviva Investors, that has £262b value of assets under management, further anticipates companies to “clearly articulate” climate strategies with transition approaches that will distribute net zero emissions by the mid part of the century, with climate plans incorporating biodiversity effects and related mitigation strategies.
Furthermore, they are required to publish a transition roadmap, containing short and medium length climate goals and milestones as well as account for advancement using the Taskforce on Climate-related Financial Disclosures framework (TCFD) with considering the choice of presenting investors with an advisory vote on the report.
The investment fund additionally want executive pay to be connected to sustainability targets, along with companies merging “robust and measurable strategic & operational” sustainability targets with fluctuating incentive plans.
“We acknowledge the magnitude of these challenges & will evaluate companies on the strength of their commitments and ability to demonstrate progress over time.
“However, we will hold boards and individual directors accountable where the pace of change does not reflect the urgency required.” stated Mark Versey, Chief Executive Officer, Aviva Investors.
Company Directors held accountable for failing on climate: