Boutique manager Liontrust’s sustainable team is stepping up its engagement with companies to ensure they reduce their absolute carbon emissions to zero, it has announced.
Companies that fail to reduce their emissions, according to the firm, risk becoming less profitable and attractive in the future.
Those which are proactive on reducing carbon emissions and willing to articulate this in their business strategy, will gain a competitive advantage.
Harriet Parker, investment manager on the Liontrust Sustainable Investment team, said: “Companies that do not develop and enact a rapid decarbonisation of their business activities will face rising costs and risk to their future success. They need to start the transition now.”
“We are not being prescriptive on how companies achieve zero carbon emissions, although we expect it to include energy efficient products, low carbon energy, renewables and improving building efficiencies,” she added.
Over 200 companies held across the funds have until the end of this year to provide a plan for how they are going to reach zero carbon emissions and over what time period this will be achieved.
The team is also asking for evidence that companies will have started the process of reducing carbon emissions before the end of this year.
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