Around 34 investors managing more than $7 trillion in assets have warned 17 of Europe’s largest companies, including BP and Volkswagen, that they could challenge board directors over their accounting of climate risks. The move is the latest push by investors to pressure companies and their auditors, charging them with not moving fast enough to adapt to the world’s transition to a low-carbon economy or being clear enough about the potential impacts. In letters sent between December and February and seen by Reuters, the investors told the companies their accounts did not reflect the fallout from climate change on their assets and liabilities. For example, some assets may depreciate faster in value while demand for certain products may fall.
Published in The Express Tribune, April 6th, 2022.
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