Liontrust Responsible Capitalism Report 2024 - Flipbook - Page 98
COMMITMENT TO NET ZERO
The Cashflow Solution team has not committed its funds to Liontrust’s
support for NZAM. This is due in large part to the lack of reliable
data on carbon emissions for the team’s holdings.
• monitor and act upon any unexpected changes to profits (arising
from a number of extraneous sources, some of which may be
as a consequence of climate risks) through the use of the team’s
Secondary scores.
The Cashflow Solution team does, however:
• incorporate into its stock screen an indication of climate-related
risks as they relate to all stocks in the team’s investable universe.
It does this by evaluating climate-related risks as they relate to
the companies identified by the Cashflow Solution investment
process.
ENGAGEMENT PURPOSE/OBJECTIVES
• The team undertakes engagement with those holdings which are
flagged by MSCI as having potential controversies relating to
human rights, business practices, high carbon emission or other
(potentially controversial) issues.
– The team uses MSCI ESG ratings and reports as indications of
climate-related risks.
– These reports contain a detailed assessment of holdings’ carbon
emissions, climate change vulnerability, financing environmental
impact and carbon footprints.
• For these, the team (or the Responsible Capitalism team, on
its behalf) engages with holdings to understand the company’s
perspective on its potential involvement or behaviour in these
areas. The team also seeks to understand what a company with
higher carbon emissions is doing to reduce its footprint.
• engage with companies where there is particular cause for
concern (or a company’s climate score is particularly poor) in its
management of climate-related risks
Engagement on climate change
During the year, the team engaged its holdings on a variety of
climate change related issues, including:
Company
What the
group does
Date
Discussion
topic(s)
Discussion summary
Impact on investment
decision (if any)
MercedesBenz Group
AG
German
multinational
automotive
group
May 2023
Diesel
emissions
Since Mercedes had issues with falsifying emissions over a
decade ago, it has improved its risk management and has not
had any new issues with diesel.
None
Groupe
Renault
(“Renault”)
French
automobile
manufacturer
June 2023
Emissions
Like other car manufacturers following the VW emissions
breaches; EVs scandal, Renault has been investigated for similar activities.
However, no court decision has been handed down.
In terms of electric vehicles (“EVs”), Renault has built EVs and its
E motor for over a decade and the proportion of its vehicles that
are electric has risen substantially.
TotalEnergies
French
multi-national
integrated
energy
company
May 2023
98 - Responsible Capitalism Report 2023
Green
hydrogen
projects;
interim targets
for net zero
TotalEnergies has begun green hydrogen projects around the
world, anticipating that in time a real market will develop for
green hydrogen. In terms of net zero, the group believes it can
achieve net zero by 2050 with an energy portfolio of 50%
in renewables and electricity, 25% in low carbon (e.g. new
molecules- biofuels, biogas, hydrogen and e-fuels) and 25% in
oil and gas. The group’s capex strategy to 2030 is for a third
to be in low carbon energies. TotalEnergies is selling off its oil
sands portfolio in Canada.
This engagement
helped reinforce the
team’s conviction in
GSK.
None