Investors With $2 Trillion in Assets Urge Cement Makers to Cut Emissions
22 July 2019 - 9:32PM
Dow Jones News
By Maitane Sardon
A group of investors with over $2 trillion in assets under
management is calling on the world's largest construction-material
firms to cut their emissions, warning that those that fail to do so
may face divestments going forward.
In a letter sent on Monday to chairs of the boards of CRH PLC
(CRG.DB), LafargeHolcim (HCMLY), HeidelbergCement AG (HEI.XE) and
Compagnie de Saint-Gobain SA (SGO.FR), the investors outlined the
steps companies should take to manage climate-related risks and
reduce their carbon emissions in line with the Paris Agreement.
Some of the investor signatories include Hermes Asset
Management, BNP Paribas Asset Management, Aberdeen Standard
Investments, the Local Authority Pension Fund Forum, Ethos
Foundation and Sarasin & Partners
"The cement sector needs to dramatically reduce the contribution
it makes to climate change. Delaying or avoiding this challenge is
not an option. This is ultimately a business-critical issue for the
sector," said Stephanie Pfeifer, chief executive of the
Institutional Investors Group on Climate Change.
The investor group is asking companies to commit to being carbon
neutral by 2050 and to provide greater climate-related financial
disclosures. They are also urging companies to engage with policy
makers to support measures to mitigate climate change.
The cement sector, which produces 7% of the world's emissions,
is the second-highest emitter of carbon dioxide according to the
International Energy Agency. With global cement production expected
to grow up to 23% by 2050, the IEA expects emissions to rise by
4%.
Write to Maitane Sardon at maitane.sardon@dowjones.com
(END) Dow Jones Newswires
July 22, 2019 07:17 ET (11:17 GMT)
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