The Church of England’s powerful investment arm is to “flex its muscles” and start exerting significant pressure on companies it believes have a poor record concerning climate change, the head of the fund has told Financial News in an exclusive interview.

The Church Commissioners for England, which took on oil giant ExxonMobil over its stance on carbon emissions, has appointed Hermes EOS, the specialist engagement firm, and hired two staff to enable it to hold more of the world’s largest companies to account. A further appointment...