Climate Impact Pledge

Our CIP is a two-fold engagement programme structured around the Task Force on Climate-related Financial Disclosures (TCFD) framework.

Our quantitative approach: we assess over 5,000 companies across 20 ‘climate-critical’ sectors, rating companies across a range of criteria and driving potential voting decisions.

Our qualitative approach: we identify over 100 ‘dial-mover’ companies for direct engagement. These are companies that we believe could galvanise change in their sectors, helping to reduce climate change systemic risks. There are voting and potential divestment implications for these companies if our sector-specific ‘red lines’ are not met.

Our quantitative approach uses over 80 metrics to assess companies, drawing on independent data providers and our pioneering climate modelling to produce a ‘traffic light’ rating system.

We publish our CIP ratings and the minimum standards we expect to see, and we write to companies where possible to inform them of our assessments. Failure to sufficiently meet our minimum standards or, for some sectors, baseline expectations, can lead to a vote sanction.

Access to our Climate Impact Pledge ratings can be found above. For more information, please see the methodology document.

Under our qualitative approach, our Investment Stewardship team identifies 100+ dial-mover companies whose action could encourage change elsewhere in their sector, in our view. Our expectations are published in our sector guides. We directly engage with these companies as we seek to understand the challenges they face and encourage them to do more to mitigate the systemic risks of climate change. Failure to meet our ‘red lines’ can, over time, lead to a vote sanction and potentially divestment from select funds.