Staying the course

James Corah, Head of Sustainability

If you put ‘quotes about persistence’ into Google, the results are quite frankly underwhelming.

I was expecting big things, to be highly motivated by what came back. Instead, I was greeted by the following from, a fittingly disappointing, football manager, Andre Villas-Boas.

I think persistence and resilience are very important

But maybe this is the secret about persistence. Maybe it is depressingly dull, maybe it has to grind it out without a hint of flare, maybe it is a necessary thing that is not to be enjoyed (maybe it is a Andre Villas-Boas Chelsea football team).

Whatever persistence is, it is needed in sustainable investment right now. Never before have we, as an industry, felt so under attack. Never before have we had a political environment that has, so effectively, managed to portray what we know is the solution to the myriad of risks we face as being the problem.

Whilst the criticism is coming in the form of loud angry rants, the response has to be one of quiet determination. Together, we know that continuing to address climate change and seeking to promote human rights is not only the right thing to do, it is the smart thing to do. We know that investment markets can only be as healthy as the planet and communities that support them. ?

So, at CCLA we are going to be persistent. We continue to believe that the investment industry can, and will, be a force for good in the world and we hope that this newsletter keeps you up to date as to how we are still pushing for better.

Continuing to push on climate change

On 13 January 2025, the Net Zero Asset Manager’s (NZAM) initiative announced its decision to remove its signatory list from the website and suspend activities relating to signatory implementation and reporting while it undertakes a consultation on the organisation’s future. This step was taken reluctantly, against the backdrop of a hostile and changing political environment that was targeting some of the world’s largest asset managers.

For those who are not aware, NZAM is an international group of asset managers who have committed, consistent with their fiduciary duty to their clients and beneficiaries, to invest in line with the aim to limit warming levels to 1.5 degrees Celsius above pre-industrial levels. This meant adopting an ongoing decarbonisation programme that leads to achieving net-zero portfolio emissions by 2050 or sooner.

CCLA was, and remains, proud to be a founder signatory of NZAM. Whilst others have had to step away, we know that no matter how politically inconvenient it might be, climate change is very real. For this reason, despite the suspension of NZAM, CCLA’s commitment to achieve net-zero emissions on the listed equities within its portfolios no later than 2050 remains active. Similarly, we are sticking to our purpose and convictions by continuing to engage with the companies in our portfolio and with public policymakers with the aim of driving change.

But this doesn’t mean that we think NZAM doesn’t need to change. Instead, we think change is essential if we are to build an investment industry that genuinely delivers for clients today whilst contributing to the change we need to see for tomorrow.

Read our full statement here

Key milestones

• We have continued our engagement that encourages UK-listed businesses to become accredited Living Wage employers by writing to 12 companies we invest in. The letter calls upon the companies to ensure that all staff, and contractors who work predominantly on their sites, are paid the current rate calculated by the Living Wage Foundation.
• We have begun our annual engagement with companies ahead of creating the 2025 CCLA Mental Health Benchmark. Since the publication of the first benchmark, 62 companies have improved their approach to protecting their employees’ mental health sufficiently to go up one or more performance tiers. We were particularly pleased to receive the following feedback from a FTSE 100 constituent company, ‘I just wanted to say how much I’ve enjoyed working with you and the wider CCLA team on this important work. The Benchmark has had a fantastic impact internally, driving meaningful change and progress year after year.’ We continue to be grateful to all of the companies that have worked with us on this important project.
• We continue to engage with companies on their approach to climate change and protecting biodiversity. As part of this programme, we met with investee company Union Pacific. We took the opportunity to discuss the importance of quantitative emissions targets and the need to review the lobbying positions of their industry associations. While there are significant steps to take, we thank the company for the positive dialogue.

CCLA in the news

• CCLA proposes next steps for asset manager net-zero initiative. Investments and Pensions Europe cover CCLA’s statement on the future of the Net Zero Asset Manager’s Initiative.
• Stewardship in 2025: Trends and tools for sustainable investors. CCLA’s Amy Browne talks to Portfolio Advisor Future about what 2025 will look like in terms of engagement.

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Image courtesy of Koestler Arts , the UK’s leading arts charity within the criminal justice system. Chameleon, HM Prison Addiewell.

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