Environmental Defense Fund (EDF) and LGIM America (LGIMA) today announced a new partnership to turbocharge investor leadership on climate change and rapidly reduce emissions across industries and sectors.This new collaboration is the first of its kind between a leading environmental nonprofit and a global asset management firm. Today’s announcement builds on the momentum of a historic proxy season and a rapidly evolving landscape.
“Investors have a tremendous opportunity to accelerate corporate climate progress by aligning their voices and choices with the concrete actions needed to actually achieve net zero,” said Ben Ratner, Associate Vice President of EDF+Business, EDF’s corporate engagement division.
“LGIM (LGIMA’s parent company) has a long history of consistently raising the bar for climate leadership, for example by advocating for Paris-aligned public policies and by establishing its Climate Impact Pledge. Now is the time for all asset managers to walk the walk on climate by closing the gap between net zero pledges and net zero plans.”
Together, EDF and LGIM America will work to:
- Urge business leaders to advocate for the policies and regulations needed to deliver emissions reductions at scale;
- Accelerate corporate climate action that turns climate commitments into tangible results, on topics ranging from methane emissions and flaring to electrification of vehicles; and
- Meet the growing demand for ESG-aligned investing options.
“LGIMA and EDF share the conviction that asset managers have the opportunity and the responsibility to use their market power to accelerate climate pledges into climate progress, shifting the needle towards a net zero future,” said John Hoeppner, Head of US Stewardship and Sustainable Investments at LGIMA. “With shareholders and regulators increasingly demanding transparency and leadership from the private sector, climate action has become a business imperative.”
“Of course, driving forward environmental solutions that work for business and the planet is no small task. But we’re eager to get started in our work with EDF, which brings invaluable civil society perspective on science, policy, and business practices to its engagements with corporates and regulators.”
EDF and LGIMA will kick off their collaboration by identifying priority companies and opportunities for corporate climate engagement within the oil and gas and transportation sectors.
Longer-term, the two organizations will also explore the creation of net zero aligned funds that deliver strong returns at competitive costs while also driving down emissions.
“Climate leadership is becoming a competitive edge as asset managers realize they can only perform well by doing good,” said Erin Blanton, senior research scholar at the Center on Global Energy Policy at Columbia University’s School of International and Public Affairs. “I am excited for EDF and LGIM to join forces and set the gold standard for ambitious and measurable climate action by investors and corporations.”