The Pensions and Lifetime Savings Association publishes topical questions to aid trustees in considering the effectiveness of their managers’ stewardship activity. We encourage funds to ask these questions during their regular manager reviews in an effort to understand their managers’ approaches and activities and to ensure that they are adhering to the stewardship policies.
TOPICAL QUESTION FOR YOUR MANAGER
Background: The Securities and Exchange Commission is investigating accounting practices at ExxonMobil, including how they account for the future costs of complying with regulations to curb greenhouse gases. The investigation has prompted renewed criticism of those investors who opposed the shareholder resolution at the Exxon AGM asking the company to assess and disclose how its business model will be effected by efforts to mitigate climate change.
Question: How will companies in your portfolio be affected by efforts to mitigate climate change? How do you understand the extent of climate-related risk to your investments and what do you do to mitigate them?
Read previous questions here.