Category: Commodities

Nordea Asset Management has spearheaded a letter by 21 investors, representing €4.7trn in assets under management, to financial institutions and companies involved in the construction of Vung Ang 2 – a coal plant in Vietnam. The letter is urging them to withdraw from the project, citing the high climate-related financial and reputational risks associated with it; the call also stresses the important role listed companies play in addressing climate change, as well as the risk they pass along to investors when failing to address climate risk exposure. “Vung Ang 2 is fast becoming the prime exhibit in the case against companies taking on transition risk on coal plants, not to mention the obvious conflict with the commitments of those same companies to align with the Paris agreement,” Eric Pedersen, Head of Responsible Investments at Nordea Asset Management, said.

Progress on diversity across the investment industry has remained disappointin…