A Tiered Approach Rooted in Financial Materiality
The Climate Policy allows clients to focus on the highest-emitting companies in their portfolio and seeks to ensure that these companies are effectively managing their greenhouse gas emissions. The policy ensures your vote reflects that companies with increased exposure to climate risks have commensurately robust climate mitigation policies.
The policy considers the size of the company and its industry, applying different, more rigorous standards for companies with higher exposure to climate-related risks.
The policy is constructed around 3 tiers:
- Tier 1 consists of Climate Action 100+ companies.
- Tier 2 consists of companies in industries that the Sustainability Accounting Standards Board (SASB) have identified as having a financially material risk due to GHG emissions.
- Tier 3 comprises companies that have lower exposure to emissions-related risks.