It's crunch time for big polluters as significant investors start making decisions about dumping companies that are failing to clean themselves up. Insurers, superannuation funds and other big players are tallying the impact of a changing climate with new high finance tools needed to protect communities - and themselves - from future risk and damage. Stewardship, also known as active ownership, involves investors using their influence to shape the long-term value and direction of a company.
By using their past experience in tracking and stamping out support for modern slavery in fast fashion or the reckless sale of weapons, many large financial institutions are using their clout to shepherd the transition to a net zero, climate-resilient economy. Journalism for the curious Australian across politics, business, culture and opinion. Clemence Humaeu, head of sustainability and governance at AXA Investment Managers, told AAP from Paris there had been a spike in their climate change engagement in the past year and net-zero policy advocacy would continue to be a priority.
Shareholder resolutions and votes on climate plans are often the most visible signs of the more active style on investment. But annual general meeting votes over sandwiches and cups of tea tend not to make the headlines in the same way activists' attacks on gas bosses or protesters gluing hands to company headquarters do. Ms Humaeu said stewardship was used to secure improvement in companies and AXA would soon mak.
