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Exclusive: After BP Takes a Hit, Investors Widen Climate Change Campaign

Exclusive: After BP Takes a Hit, Investors Widen Climate Change Campaign

LONDON — Investors managing £1.8 trillion ($2.2 trillion) in assets are widening a campaign pressing oil majors to better reflect climate risks in their accounting, and will soon target other businesses with heavy fossil fuel exposure, the group said on Monday.

The investors believe their campaign is working, noting the "hugely important" news of BP joining other oil majors in lowering the value of its assets amid a global transition to cleaner energy, said Natasha Landell-Mills, head of stewardship at asset manager Sarasin & Partners.

"The question all company directors and their shareholders now need urgently answered is, 'Where else might company positions be overstated?'" the group of more than 20 leading funds said in a joint statement seen by Reuters.

BP declined to comment on the campaign.

The investor group can't be certain whether its efforts played into BP's decision to reduce the value of its assets by up to $17.5 billion, announced on June 15.
But they have already begun lobbying building materials company CRH and plan to write to Anglo-Australian miner Rio Tinto, which supplies the steel industry. Along with cement, steel is a major source of greenhouse gases.

"We will be rolling out similar engagements with other fossil fuel-dependent companies," Landell-Mills, who is coordinating the campaign, told Reuters in an interview.
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