Lyxor Asset Management is increasing its engagement and voting with companies the firm feels are not in line with climate change targets.
The fund manager aims to strengthen its opposition to companies that are “not sufficiently” mindful of the climate or environment.
Throughout the rest of this year, Lyxor said it may refuse to grant discharge to a board of directors, or to approve the reappointment of members in the case of environmental controversies or a lack of transparency concerning greenhouse gas emissions.
From 2021 onwards, the fund manager could also refuse the chairman re-election of any board where the company refuses to uphold the recommendations of the Task Force on Climate-related Financial Disclosures – a taskforce set up to develop “voluntary, consistent climate-related financial risk disclosures”.
Lyxor also stated that it will be able to vote against resolutions concerning executives’ compensation if extra-financial measures have not been “sufficiently considered” within renumeration policies.
Florent Deixonne, head of governance and SRI at Lyxor, said: “The health crisis we are currently experiencing may accelerate in-depth reflection on our economic and social systems, but also regarding our environmental responsibility.”
In a statement, Lyxor said it expects boards of directors and supervisory boards to shoulder their full responsibilities in relation to the climate challenges they face.
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