annual review indst 2024 public - Flipbook - Side 17
Annual Review 2024
absolute financed emissions reduction target for the oil and
gas sector. Also in 2024, UBS increased the coverage of its
sector-level financed emissions reduction targets to 81% of
loan book emissions.
We co-led the IIGCC collaborative
engagements at the three Japanese
megabanks to reiterate our climaterelated engagement requests.
Other CA100+ engagements continued to show progress on
routine elements of the CA100+ benchmark – for example,
Caterpillar and Power Assets Holdings disclosed some
categories of their Scope 3 emissions. At Danone, we
welcomed the introduction of a Scope 1-3 emissions metric
in the executive remuneration policy, while CRH raised the
ambition of its Scope 1-3 targets, validated as aligned with a
1.5°C pathway by the Science-Based Targets initiative (SBTi).
We co-led the IIGCC collaborative engagements at the three
Japanese megabanks – Mizuho Financial Group, Sumitomo
Mitsui Financial Group (SMBC) and Mitsubishi UFJ Financial
Group – to reiterate our climate-related engagement requests.
We sought more disclosure around the banks’ assessment of
risks relating to the financing of their fossil fuel sector clients
and their mitigation through energy transition plans that are
more aligned with the goals of the Paris Agreement.
Other climate engagements
As part of NZEI, EOS engages with Ahold Delhaize, a
company involved in the management and operation of
supermarkets, as well as an e-commerce business. In line with
our requests to Ahold Delhaize, the company published a new
transition plan with information on the levers for achieving
Scope 3 decarbonisation, its public policy work, its
engagement with its suppliers and the investment
requirements for decarbonisation.
Hyundai Steel is another company where progress was made
against the core NZEI requests. It has now made a
commitment to reach net zero emissions by 2050 and has
published details on its plans to achieve this ambition,
including the technological changes required.
We were pleased to see enhanced
disclosure and methodologies from
the banks.
Finally, utilities company Veolia has significantly improved its
overarching approach to reducing emissions. In February
2024, the company published a net-zero strategy
incorporating feedback provided over several rounds of
investor meetings. Veolia’s climate change target was
validated by the SBTi in July and assessed by the Moody’s
Net Zero Assessment as 1.5°C-aligned.
Through the banks initiative, following our engagement on
the adequacy, quality, and coverage of sector-level financed
emissions risk management, BNP Paribas announced an
We were pleased to see enhanced disclosure and
methodologies from the banks, as well as an update to
SMBC’s transition finance playbook and the introduction of
environmental and social due diligence. Overall, however, there
remains a lack of disclosure around any consequences if client
transition plans are found to be misaligned with the banks’
climate goals. We have engaged with the banks on considering
competencies for managing climate-related business risks and
opportunities in the board director nomination process. We also
want to see them elaborate further on the consequences of their
clients not producing credible Paris-aligned transition plans.
While the majority of our engagement on climate change is
led by EOS alone, we continue to support certain
collaborative engagement initiatives. These follow
guidelines to ensure that at all times EOS and investors act
in line with all relevant laws and regulations, and focus on
the most material opportunities and risks at each company.
This is in line with investor fiduciary duties to seek enhanced
long-term shareholder value at each company engaged.
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