The third-quarter Sustainability Committee meeting was held on Wednesday September 09th.
The Committee reviewed the Sustainability Blacklists and the Sustainability Consensus Whitelists for both Europe and U.S., which were all approved:
- Sustainability Consensus Europe: one new exclusion was added, and two former exclusions were deleted. Linde plc was excluded due to its significant carbon emissions while CRH plc and G4S plc were added to the Sustainability Consensus Whitelist.
- Sustainability Consensus U.S.: four new exclusions were added, and three former exclusions were deleted. AES Corporation and Duke Energy Corporation were excluded due to their high carbon emission levels while Raytheon Technologies Corporation was excluded because of its involvement in controversial weapons production. PG&E Corporation was added to the Blacklist as it breached the first UNGC principle after public safety incidents took place in the U.S.
Caroline Ramscar, Head of Sustainability Solutions at LGIM, shared LGIM’s latest thoughts on thermal coal with the Committee. It is a very topical discussion amongst clients as the industry is starting to shift towards more static metrics such as climate and emission impacts, or coal produced volume, rather than a sole revenue threshold. Foxberry will be taking this point outside the meeting for further discussion as other Committee members, agreed that it might be interesting to investigate different approaches.
Volkswagen’s position on the Blacklist was also discussed. Caroline Ramscar pointed out that the company is making a substantial effort to switch to electric vehicles. Vesa Syrjäläinen also added that several research houses suggested they remain unsure whether Volkswagen will be able to meet regulatory limits with the scaled production.
As clients’ focus evolves towards more complex and targeted ESG and sustainability matters, the Sustainability Committee adapts to changes and discusses arising topics and their potential impacts.
: United Nations Global Compact principles: https://www.unglobalcompact.org/what-is-gc/mission/principles