The Anonymous Widower

Aviva To Eject Company Directors If Climate Goals Are Not Met

The title of this post is the same as that of this article in The Sunday Times.

Increasingly, I am seeing company boards taking decisions, that will cut their company’s carbon footprint.

Only yesterday, I wrote Suppliers Sought For New Bi-Mode Locomotives For TransPennine Express And Great Western Railway, which was about First Group’s moves to decarbonise some of their locomotive-hauled trains.

I have also written about BHP, BP, Fortescue, Go-Ahead and Rio-Tinto taking action to decarbonise.

It does seem that some company boards are following Aviva’s guidance, but then it is in the directors own interest.

Many directors of large companies own shares and in a big public company, these are publicly traded.

I would suspect, that if a company board, do the right thing in terms of decarbonisation, that the share price will rise.

So by following the accepted climate science, they are actually helping themselves.

If they don’t believe that, then aggressive shareholders from Norwich will punish them.

January 23, 2022 - Posted by | Business, Finance, Transport/Travel | , , , , , ,


  1. Problem is a company like this has pensioners that want an income from them and a big income stream is oil & gas currently. So laudable though it is I can see the losers being the investors not the directors.

    Comment by Nicholas Lewis | January 23, 2022 | Reply

  2. I take your point about mining companies decarbonising but it’s the Sovereign Wealth Funds they have to worry about and particularly those with large equity holdings like the . Norway Government Pension Fund Global
    Even when these bodies exercise their influence. They may make you give up vast opencast coal mines and oil fields (don’t see the Saudis, Kuwait, Abu Dhabi, Quataris, and Brunei, subscribing to the latter) but they’ll not get over exercised about the peripherals. I doubt the Chinese Investment Corporation, the world’s second largest fund, will be overtly dissenting from the environmental aims but you only have to look at their investments around the world to recognise that they’re not wholly sold on ESG.
    Sure there’s going to be growing pressure to decarbonise by institutional investors threat to the share price but the capitalist model doesn’t encourage rapid change if it leads to a loss of profitability. That’s called shooting yourself in the foot.

    Comment by fammorris | January 23, 2022 | Reply

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