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Global investors are pushing for Asian pressure to reduce emissions

Global investors including JPMorgan and Fidelity will call on five of Asia’s most energy-polluting companies to reduce greenhouse gas emissions as part of a new climate change commitment program.

The group of investors, who have combined $ 8.8 million in assets, will focus on public services in mainland China, Hong Kong, Japan and Malaysia that carry out large operations with coal. These energy companies produced approximately 285m tonnes of CO2 in 2019, equivalent to the Spanish state’s emissions, according to the program’s sponsors. Other investors include weapons to manage the assets of European BNP Paribas and Amundi, as well as Japan’s Sumitomo Mitsui.

Global investors are marking the latest push to force major polluters to reform their businesses and act on climate change issues.

China Resources Power Holdings, Hong Kong’s CLP Holdings, Malaysia’s Tenaga Nasional Berhad, Japan’s Chubu Electric Power and J-Power have warned of a commitment program to be launched on Monday.

Users have identified investors because they generate large greenhouse gas emissions, because they have high coal-fired capacity, or because investors have a strategic role to play in achieving a global goal of zero emissions. Financial Times.

The program is coordinated by the Asian Investors Group on Climate Change, has 56 members from 13 countries and manages more than $ 15,000 in assets.

“Asian utilities are responsible for 23% of all world carbon emissions,” said Rebecca Mikula-Wright, AIGCC executive director. “Transporting zero emissions from Asian public services will be key to the world meeting the goals of the Paris Agreement, limiting global warming to 1.5C.”

Under the program, investors will question the responsibility of their board companies for climate risk, their use of coal in line with the goals of the Paris Climate Agreement, their awareness and how they can achieve zero emissions by 2050. .

The initiative will be in parallel with a similar scheme persecuted Climate Action 100+ is a worldwide investment group of investors with more than 500 members, including BlackRock and Pimco.

Paul Milon, chief executive officer of Asia Pacific, told BNP Paribas that the new program will use some Asian services that are no longer covered by the Climate Action 100+ initiative and are highly reliable with coal.

“We believe that having a constructive dialogue with these targeted companies can facilitate the transition to zero transport emissions,” he said.

“Investors have high expectations of what they need to do to meet our expectations in order to continue investing in these companies in the medium to long term.”

J-Power said it is promoting the use of carbon-free hydrogen to generate energy and has set a provisional target for reducing emissions by 40% by 2030 compared to 2017-19 levels.

The CLP said: “We are pleased to be committed and look forward to discussing our decarbonisation plans with the AIGCC.”

Chubu Electric Power declined to comment on the matter.

China Resources Power and Tenaga have not responded to the response requests.

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