Snapshot

How we hold companies to account on their climate change plans


Recently there has been a huge up swell in corporate planning, activity and targets around climate change, which is a hugely positive development.

However, it is important that we evaluate how credible these plans are.

The first really important thing is to look at whether these are long-term objectives. For example, are they looking to become net zero emissions by 2050? Or are there near-term milestones, such as five-year targets and real measurements, that we can hold companies accountable to?

Secondly, we need the sources of those reductions. Are they coming from real improvements in the companies' operations or are they reliant on things such as carbon offsets? These can be important, but they are not the same as reducing those emissions at source from those companies.

So, when we hear about these plans from those companies, our approach is to really look at the real reductions the company is going to achieve in their climate change plans.

We can then evaluate what that means for investors and the companies' contribution to climate change.

The opinions contained herein are those of the author and do not necessarily represent the house view. This document is intended to be for information purposes only. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable but Cazenove Capital does not warrant its completeness or accuracy. No responsibility can be accepted for errors of fact or opinion. This does not exclude or restrict any duty or liability that Cazenove Capital has to its customers under the Financial Services and Markets Act 2000 (as amended from time to time) or any other regulatory system. Cazenove Capital is part of the Schroder Group and a trading name of Schroder & Co. Registered Office at 1 London Wall Place, London EC2Y 5AU. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. For your security, communications may be taped and monitored. 

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James Brennan

James Brennan

Portfolio Director james.brennan@cazenovecapital.com