TCI Hedge Fund to Punish Directors Over Carbon Emissions

Dec 2019

Hedge Funds, Carbon Emissions

Airbus, Moody’s, Charter Communications and more have been warned by TCI

As ESG becomes more popular by the day, investors are becoming increasingly concerned with the true identities of the companies they have in their portfolio’s.



Investors are steadily heaping more and more pressure on boardrooms to disclose such information as; annual carbon emissions.



One man leading this charge is UK billionaire and hedge fund manager; Sir Christopher Hohn and his activist hedge fund TCI.



With the UN Climate Talks in Madrid taking place the week commencing 2nd of December 2019, Christopher and TCI is planning to punish company directors if they do not disclose carbon emissions.



Christopher has gone as far as claiming;

“Investing in a company that doesn’t disclose its pollution is like investing in a company that doesn’t disclose its balance sheet,”

Government Ruling

Currently none of the world’s financial centres have mandatory climate risk disclosure policies, however London are in the process of considering making that change.



Hohn has spoken out on the lack of policies; “If governments won’t force disclosure, then investors can force it themselves.”



With that being said, companies currently would still not be legally obligated to disclose that information. However, Christopher detailed in a letter to those companies within TCI’s portfolio that; They would vote against Directors and call for asset owners to fire fund managers.



Included on this list of warned companies includes; Airbus, Moody’s and Charter Communications, who have all been asked to improve their pollution disclosure and provide annual carbon emissions reports.



Furthermore, Christopher accused Blackrock of “Greenwash” as they do not require emissions disclosure.



Coincidently out of the world’s 15 largest asset managers of climate related shareholder resolutions, Blackrock and Capital Group have been the least supportive.

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