Companies must align their strategies with Paris Agreement, says ASCI

The Australian Council of Superannuation Investors (ASCI) said companies must align their corporate strategies with the landmark Paris Agreement and the target of net-zero emissions by the year 2050.

Firms must also set short, medium as well as long-term emissions reduction targets, said the council, adding it’s tightening its climate change policy and could recommend voting against directors of companies who’re not doing enough to fulfill Paris goals.

“Climate change risks are deeply embedded in the financial system and impact all sectors and asset classes. For long-term investors, this poses a serious challenge to long-term value creation across investment portfolios,” said ASCI CEO Louise Davidson.