Initiative launched to drive investor action on corporate air pollution
November 6th, 2024
Guy’s & St Thomas’ Foundation and CCLA Investment Management have launched a public consultation to tackle corporate air pollution through investor action.
The health foundation and charity asset manager have proposed an investor intervention, introducing a corporate benchmark aimed at creating transparent comparisons of companies’ air pollution management, coupled with an investor engagement initiative.
The new consultation will initially target companies involved in on-road transport because this sector was the largest source of NO2 in 2022, a gaseous air pollutant produced by burning fossil fuels, and company vehicles accounted for 15% of the UK’s total vehicle share in 2024.
Therefore, there is significant scope to take action to reduce emission from on-road company vehicles, according to the consultation.
While sectors like energy, construction, transportation and agriculture have a greater impact, all companies impact air quality, for example through haulage, business travel and commuting.
The consultation recommends organisations reduce their air pollution footprint and adopt cleaner technologies to better position themselves better for future growth and regulatory changes.
In addition, companies that fail to actively address air pollution impacts could face regulatory penalties, rising costs, shareholder activism and a loss of consumer trust.
Matt Lomas, engagement director of investment at Guy’s & St Thomas’ Foundation’s endowment, said: “The air we breathe matters for all of us. Air quality should be a concern for investors given the impact poor air quality has on people, planet and increasingly businesses as companies’ contributions become more understood. We know that by working together as investors we can work with companies to reduce their negative impacts on the environment and health.”
The consultation will remain open for responses until December 17.
Last Updated: 7 November 2024