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CCLA, One Angel Lane
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IMPORTANT INFORMATION
All data as at 31 December 2024, unless specified otherwise. This document is issued for information purposes only. It does not constitute the provision of financial, investment or other professional advice. We strongly recommend you seek independent professional advice prior to investing. The value of investments and the income derived from them may fall as well as rise. Investors may not get back the amount originally invested and may lose money. Any forward-looking statements are based on CCLA’s current opinions, expectations and projections. CCLA undertakes no obligations to update or revise these. Actual results could differ materially from those anticipated. All names, logos and brands shown in this document are the property of their respective owners and do not imply endorsement. These have been used for the purposes of this document only. CCLA Investment Management Limited (a company registered in England and Wales with company number 2183088), whose registered address is One Angel Lane, London EC4R 3AB, is authorised and regulated by the Financial Conduct Authority.
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Better environment
Climate stewardship
We do not invest directly in any companies that focus on extracting, producing, or refining coal, oil sands, oil or gas, nor any company in a high-carbon sector that we believe does not align with the Paris Agreement. In our view, these businesses are highly exposed to changing legislation and regulation aimed at tackling climate change.
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A Break from the World, HM Young Offender Institution Aylesbury | Courtesy of Koestler Arts
Nonetheless, we continue to invest in companies across a range of sectors that can influence climate change. These include electrical utilities companies, consumer goods businesses, health care companies and information technology companies.
At its core, our engagement strategy aims to drive and accelerate corporate emissions reductions. It is conducted both directly and as part of climate-related collaborative investor initiatives, such as Climate Action 100+ (CA100+)and the Institutional Investors Group on Climate Change’s (IIGCC) Net Zero Engagement initiative.
Our engagement activity is consistent across all our equity funds and multi-asset funds that hold listed equities; it does not vary from fund to fund. It is monitored by our Investment Committee. Poor corporate responses can, in extreme cases (i.e. where a company has breached, or may in the future breach, international standards set out in the UN Global Compact and UN Guiding Principles on Business and Human Rights), lead to divestment.
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“There’s someone here to see you regarding the climate reparations bill.”
www.CartoonStock.com

Top 30 emitters in our portfolios

We focus our active ownership work on the 30 largest greenhouse gas (GHG) emitting listed equity holdings in our portfolios, identified using scope 1 and 2 and estimated scope 3 emissions. While scopes 1 and 2 are used for portfolio metrics due to their reliability, we also consider estimated scope 3 emissions where material. Scope 3 usually represents the largest share of a company’s climate impact, and despite data challenges, we include it in our engagement priorities to address the most significant emissions across the full value chain.
Our aim is to persuade companies to set credible decarbonisation plans, monitor performance against these plans and follow through on successful implementation. The top 30 emitters in our portfolios are set out below with corresponding CDP scores, which give an overview of companies’ overall climate change disclosure standards.
Top 30 GHG emitters in our portfolios
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*Not held in CCLA portfolio(s) as at 31 December 2024. Source: MSCI and CDP. CDP company scores 2023 (latest available as at December 2024). Top 30 portfolio emitters for scopes 1 and 2 and estimated scope 3 emissions as at 31 March 2024. IIGCC NZEI: Institutional Investors Group on Climate Change’s Net Zero Engagement Initiative.

Engagement in 2024

We had dedicated climate-related engagement meetings with 13 of our top 30 greenhouse gas-emitting companies in 2024. Beyond our engagements with the top 30 companies, we use a variety of other approaches to ensure that systemic climate risk is addressed:
1
In September, in collaboration with the Local Authority Pension Fund Forum (LAPFF), we wrote to 76 FTSE 100 companies that had not held a vote on their climate transition plans in the past three years. Such votes allow shareholders to express their views on a company’s transition plan through a dedicated resolution, rather than having to vote against the re-election of a board member or another item on the agenda. CCLA and LAPFF were joined by 39 other investors with £1.6 trillion assets under management.
This initiative has seen a marked increase in response rates, indicating growing engagement. Prior to the 2023 annual general meeting (AGM) season, the response rate was 19%; it has since risen to 64%. In 2024, one company committed to holding a vote on its transition plan at its 2025 AGM, while another plans to do so in 2026. The majority of companies in 2024 indicated that they would keep a transition plan vote under review, showing an increasing focus on ensuring accountability to shareholders.
2
As part of the continuing IIGCC Net Zero Engagement Initiative, in October we co‑signed letters to 160 companies requesting information about their climate transition plan development. We sought clarification as to whether these plans would be put to shareholders for approval, aligning with expectations for transparency and accountability in managing climate-related financial risks and transition planning.
3
In 2024 our support for CDP’s annual Non-Disclosure Campaign focused on companies failing to provide information to shareholders on risks posed by climate change, forestry and water security (the last of these including plastics). The campaign aims to drive up the rate of corporate environmental disclosures. In 2024 this involved contacting 1,590 listed companies that had so far failed to respond to CDP. By the end of 2024, CDP reported that 317 companies had disclosed this information following engagement. These included CCLA portfolio companies O’Reilly Automotive and Sonic Healthcare on climate change and Home Depot on forestry.
4
A core aspect of our engagement with companies is monitoring whether their carbon reduction targets are science based. In 2023, we participated in a CDP initiative that involved writing to more than 2,100 high-impact companies. The letters asked the companies to commit to and set 1.5°C-aligned science-based targets by signing up to the Science Based Targets initiative (SBTi). In all, 71 companies did so as a result, including two of our portfolio companies: in 2024, Danaher committed to the SBTi targets and RELX had its targets validated.
Scope 1, 2 and 3 emissions
The scope 1, 2 and 3 system is a way of categorising the different kinds of carbon emissions a company creates in its operations and in its wider value chain.

Scope 1

This is made up of the greenhouse gas emissions that a company makes directly – for example, while running boilers and vehicles.

Scope 2

This consists of emissions for which a company is indirectly responsible – for example, emissions resulting from the production of the energy and electricity that it buys to heat and cool its buildings.

Scope 3

This covers all other indirect emissions associated with a company both up and down its value chain. Scope 3 includes emissions created by a company’s suppliers and extends right down to the emissions created by its products when customers or consumers purchase and use them. Scope 3 emissions tend to account for the majority of a company’s carbon footprint but are also the most difficult to measure and address.
KEY
No response
Discussions ongoing
Positive change
Met engagement target

Progress on climate

The outcomes of our engagement on climate in 2024 are set out below. The icons represent the status of our engagement for each company.
Abbott Laboratories Health care
Engagement with Abbott has been ongoing through correspondence since the company has not held any shareholder-focused environmental, social and governance (ESG) events. Abbott has set emissions reduction targets validated by the Science Based Targets initiative and has shared updates on its progress towards achieving these goals.
Alphabet Information technology
Communications with Alphabet have been brief, and not particularly informative beyond signposting of materials on the company website. We investigated co-filing a shareholder resolution asking how the company’s climate commitments align with its lobbying activities, including actions taken directly and through trade associations. We were unable to progress co-filing as we hold non‑voting shares.
Amazon Consumer staples
Communications continued with Amazon about the transparency and completeness of its scope 3 emissions reporting. Specifically, we questioned the exclusion of significant emissions, especially from its third-party product sales and supply chain activities. While Amazon maintained that it only reports emissions directly relevant to its business, we urged it to provide more detailed and accurate reporting, following the Greenhouse Gas Protocol Corporate Standard. We also supported a related shareholder resolution at the annual meeting asking for improvement on scope 3 emissions disclosures.
Coca-Cola Co Consumer staples
We corresponded with Coca-Cola in 2024, highlighting the need to accelerate its decarbonisation and encouraging the company to develop a comprehensive, publicly available transition plan. Although we outlined specific recommendations, including mechanisms for shareholder accountability, the company did not respond.
Costco Wholesale* Consumer staples
Engagement aimed to clarify several aspects of the company’s climate transition plan, including how specific actions would lead to emissions reductions, potential long-term targets beyond 2030, and how aligning with a 1.5 °C pathway could impact stakeholders. We also sought information on the company’s stance on climate policies and how it engages with industry associations on these matters. Costco acknowledged the importance of these areas but did not provide firm commitments.
Deere & Co Industrials
A meeting in the summer provided an opportunity to press for more transparency on Deere & Co’s decarbonisation progress. The company has committed to aligning its strategy with a 1.5 °C pathway, with discussions highlighting the importance of reducing scope 3 emissions through precision technology and balancing investments in biofuels with electrification. Responding to a request for evidence of how the company planned to align future capital spending with decarbonisation goals, representatives emphasised the integration of sustainability with financial performance.
Eaton* Industrials
We wrote to Eaton to inquire about the main steps it is taking to meet its emissions reduction targets and the potential to accelerate decarbonisation progress up to 2030 but have not yet received a response.
Empiric Student Property Infrastructure
Following engagement, Empiric presented its short-term ESG targets for shareholder approval at the company’s May 2024 AGM (see panel for details).
Ferguson* Industrials
We engaged with Ferguson to explore its decarbonisation plans, focusing on setting science-based targets and improving how it measures and reports scope 3 emissions. Ferguson shared its approach to balancing environmental goals with long-term business success, highlighting actions such as virtual power purchase agreements, electric vehicle technology and improving supply chain visibility. While the company is on track to meet its emissions intensity targets, absolute emissions have increased, and the company recognises the need for more comprehensive scope 3 reporting. We encouraged greater transparency in its climate lobbying as it refines its transition plan.
Home Depot Consumer staples
At a December meeting, we commended Home Depot for having its targets validated by the Science Based Targets initiative and for improving the breakdown of its scope 3 emissions. Disclosure has improved such that reporting is published annually. We will continue to push forward on our other asks: disclosure of all scope 3 categories, a clearer decarbonisation roadmap, a public statement on alignment with the Paris Agreement and consistency with positions taken by the company’s trade associations.
Honeywell International* Industrials
Honeywell has not responded to repeated requests for discussions about its decarbonisa­tion transition strategy, making engagement challenging. As a new addition to the Climate Action 100+ focus list, it received its first benchmark assessment in October, setting a clear baseline for future dialogue. We sold our shares in Honeywell in 2024 for investment reasons.
Johnson & Johnson Health care
A meeting with Johnson & Johnson representatives gave the opportunity for a deep dive into decarbonisation initiatives – for example, relating to upstream transportation and distribution, one of the company’s larger scope 3 emissions categories. As with other areas of indirect emissions, working with suppliers is crucial, and the biggest impact will come from supplier-led reductions. We suggested that the company could provide more transparency and details in its roadmap for emissions reductions and also be clearer on how its stance on climate issues aligns with that of its industry trade associations.
LVMH Moet Hennessy Louis Vuitton Consumer discretionary
During 2024, we engaged with LVMH on its climate transition plans, including decarbonisation targets, emissions reporting and governance, highlighting progress under its climate programme while noting its targets are pending validation by the Science Based Targets initiative.
Medtronic Health care
We met with Medtronic to discuss its progress on decarbonisation. The company has increased its renewable energy use and expects its Science Based Targets certification by mid-2025, supported by its first virtual power purchase agreement. While Medtronic has made progress in governance and operational sustainability, including by appointing a chief sustainability officer, there is potential for setting clear scope 3 emissions targets and aligning executive pay with climate goals. We also sought clarity on how the company engages with shareholders on its transition plan, encouraging greater transparency and alignment with investor expectations.
Microsoft Information technology
Having had a brief exchange of correspondence with Microsoft in 2023, in 2024 we followed up with more detailed questions on the company’s emissions reduction initiatives, including its withdrawal from its Science Based Targets initiative commitment and its positioning with trade associations’ climate advocacy. We have not yet received a reply to our latest communication.
Nestlé Consumer staples
Nestlé demonstrated progress against engagement requests including reporting emissions reductions from 2018 and providing detailed insights into the relative contributions of decarbonisation levers to its greenhouse gas emissions reductions. The company also addressed climate in remuneration by adding emissions reductions as part of its performance share plan. A second meeting focused on further areas where improvements had been requested, including more transparency on its scope 3 emissions breakdown, on offsets, and on the scope, scalability and timelines of agroforestry investments. We also highlighted areas for improvement in the company’s lobbying review. Nestlé made various commitments to improve disclosure and will provide a review on lobbying disclosure in May 2025.
NextEra Energy Electrical utilities
NextEra Energy is one of the world’s largest generators of renewable energy. Despite its leadership in decarbonising the US electricity sector, the company has lagged behind its peers in climate-related disclosure. CCLA has been engaging with the company since 2021. More recent engagement has focused on improving lobbying disclosure, including trade association alignment with the company’s 2045 decarbonisation goal. Our 2024 shareholder lobbying resolution achieved 33% of the investor vote. A further resolution has been filed for the 2025 AGM season (see the voting section for details).
Nike* Consumer discretionary
After corresponding with Nike in 2023 regarding its emissions reduction approach, we requested a meeting in 2024. The company replied with an offer to address questions. However, since we subsequently sold the company, the engagement was not pursued further.
PepsiCo*
Consumer staples
Before it was sold from our funds, PepsiCo was a top 30 emitter in our portfolio. A collaborative meeting with the company in 2023 recognised progress it had made in addressing scope 3 emissions reductions, in including climate metrics in executive compensation, and in addressing a potential misalignment between the company’s climate transition plans and its lobbying activities and trade association memberships. When we met with representatives in 2023, the company had not yet published a detailed transition plan. In 2024 its climate strategy (in the form of a road‑map) together with additional detail in its new ESG reporting showed improvement in transition planning disclosure.
Pfizer* Health care
After meeting with company representatives in December 2023, a follow-up meeting was scheduled for later in 2024. The company was sold from our portfolio before the meeting took place and the engagement was not carried forward.
Procter & Gamble Consumer staples
Discussions with Procter & Gamble (P&G) focused on its plans to reduce carbon emissions in both its supply chain and its operations. On carbon credits for offsetting, P&G explained that its main goal is to reduce emissions directly, and only use natural or technical offsetting solutions to address any remaining emissions. We suggested that P&G set a target for reducing emissions from agriculture sourcing and land use changes associated with its products.
Rio Tinto Mining
We held two meetings with Rio Tinto to discuss plans for cutting emissions and making transparency improvements, especially in how the company decarbonises its operations and manages its supply chain. While progress has been made towards 2030 targets and in collaborations with the steel industry, we asked for more detail on scaling these initiatives and tackling supply chain emissions. We highlighted the importance of making sure the narrative in the company’s annual report aligns with the financial data, so that investors can clearly see how climate goals match up with financial decisions. Lastly, we urged Rio Tinto to take a stronger, more transparent approach to advocating for better climate policies, especially given its evolving stance on Australian environmental protection and biodiversity legislation.
Roche Holding Health care
In 2024, Roche submitted near- and long-term emissions reduction targets to the Science Based Targets initiative. These targets seek to reduce greenhouse gas emissions across its operations (scopes 1 and 2) and throughout its up- and downstream value chain (scope 3) to achieve net-zero emissions across its entire value chain by 2045. In 2023 the company reduced its scope 1 and 2 emissions by 6.9% and its scope 3 emissions by 7.4%.
Siemens Industrials
We engaged with Siemens to encourage clearer plans and actions for its climate transition strategy. Siemens has raised its 2030 scope 3 reduction target from 15% to 30% and recently had its targets validated by the Science Based Targets initiative. At its AGM, we urged the company to set out a detailed timeline for its transition plan and to consider putting it to a shareholder vote, as peers such as Schneider Electric have done. Although Siemens had previously stated that no other shareholders were asking for this, two speakers before us at the AGM made the same request. We appreciate the progress made so far and will continue to push for greater transparency and accountability on the company’s decarbonisation strategy.
Taiwan Semiconductor Manufacturing Co Information technology
Collaborative correspondence has included asking the company to set a science-based emissions reduction target through the Science Based Target initiative. More recently, as part of the Net Zero Engagement Initiative investor group, we asked for more information on how the company expects to achieve its targets and how it is engaging with governments on bottlenecks in policy. The company has recently made some progress, such as an increased target for its use of renewables by 2030 and improved scope 3 disclosures, which came in 2024.
Thermo Fisher Scientific Health care
Thermo Fisher Scientific provided a brief response to correspondence requesting information on elements of its carbon transition plan. We have requested a follow-up meeting.
Trane Technologies Industrials
Having recently joined the Climate Action 100+ group, we met the company to discuss several areas central to its climate transition. This included its approach to scope 3 emissions, where investors would benefit from a clearer strategy for reductions. Currently, efficiency is a primary component of this strategy. We also explored Trane’s capital allocation to next-generation climate technologies, such as heat pumps, and its position on offsetting. We recognised improved public policy disclosure and encouraged the company to be more transparent on its lobbying and trade associations activity.
Unilever Consumer staples
We have been engaging with Unilever on its climate transition for several years. In 2024, we welcomed the news that it had achieved a 100% score from InfluenceMap on its approach to climate-related lobbying and advocacy (see panel for details).
Union Pacific Industrials
We contacted Union Pacific to initiate a dialogue regarding its climate action plan and alignment with broader climate goals towards the end of the year. The company responded positively and a meeting is scheduled for 2025.
UnionHealth Group Health care
UnitedHealth has committed to science-based target-setting through the Science Based Targets initiative. The company was awaiting the publication of the Transition Plan Taskforce financial sector guidance in 2024 for further development of its transition plan and is open to additional engagement.
US Bank* Financial services
In a collaborative engagement with Ceres and the Interfaith Center on Corporate Responsibility (ICCR), we discussed the bank’s climate strategy and disclosures. The conversation focused on transition planning, sustainable finance and public policy advocacy. US Bank provided updates on its sector-specific net-zero transition plans, highlighting its challenges and progress in data collection and policy development. The bank committed to improving its data quality and disclosures, aiming to align with global emissions reduction commitments and enhance transparency in its climate-related activities.


*Not held in CCLA portfolio(s) as at 31 December 2024.
Climate engagement with Empiric Student Properties
In 2023, we engaged extensively with Empiric Student Properties, meeting the company’s CEO and chief finance and sustainability officer, and continuing discussions with the latter throughout the year. These meetings centred on measures to improve the energy efficiency of Empiric’s buildings, the development and disclosure of a climate transition plan, and the possibility (which we encouraged) of the company seeking shareholder approval for the plan through a formal resolution at its AGM.
We maintained a constructive dialogue with the company, providing examples of peer companies that had already taken similar steps relating to seeking feedback by means of a resolution. Empiric was responsive, planning to accelerate the roll-out of energy efficiency measures and seek validation of its decarbonisation targets from the Science Based Targets initiative by 2025 and to include the plan in board discussions around its AGM agenda.
At its May 2024 AGM, instead of focusing on past ESG achievements, Empiric presented its short-term ESG targets for shareholder approval. These targets, covering 2024 and 2025, emphasised near-term decarbonisation goals alongside other governance priorities. Approximately three-quarters of shareholders supported the resolution. The directors also committed to revisit these targets every two years, giving shareholders a regular opportunity to review and approve updates and ensuring transparency and accountability.
Following the AGM, we were encouraged by Empiric’s commitment to engage with larger shareholders who voted against the resolution; this showed its willingness to listen and address concerns. The company expressed appreciation for our constructive input, highlighting the role of collaboration in aligning its strategic priorities with shareholder expectations.
“Is my homeowners policy covered for Global Warming?”
www.CartoonStock.com
COP29: Progress in the face of headwinds
Negotiations at the 29th United Nations Climate Change Conference (COP29) in Baku continued 35 hours beyond the deadline, highlighting the challenges in finding consensus among nearly 200 countries. While some progress was made, many consider the outcomes not to be of the scale and scope needed to address the urgency of the climate crisis.
One major result was a commitment from wealthier nations to provide $300 billion annually for developing countries’ energy transitions. Although this has been the largest financial pledge made at COPs to date, it is still only a fraction of the $1.3 trillion a year experts estimate is needed for energy transition and adaptation.
There were some positive developments, such as the UK, Colombia and New Zealand joining the Coalition on Phasing Out Fossil Fuel Incentives Including Subsidies (COFFIS). This group aims to end subsidies for fossil fuels, supporting the shift to renewable energy systems. The conference also emphasised the need for clearer sector-specific plans that outline how industries such as transport, energy and manufacturing will decarbonise.
A carbon credit mechanism was adopted to help make emissions cuts more affordable. The ‘Baku to Belém Roadmap to 1.3T’ also set a plan to scale climate finance to $1.3 trillion annually by 2035.
As UN Secretary-General António Guterres put it, ‘Climate finance is not charity. It’s an investment in our shared future.’ While COP29 made some progress, the message from Baku is clear: much more action is needed, and soon.
Climate-related lobbying activity at Unilever
We have been engaging with Unilever on its climate transition for several years. Following constructive discussions, it became the first FTSE 100 company to seek shareholder approval for its transition plan at its AGM. Ahead of its 2024 AGM, we had several meetings to discuss expectations for the plan’s development. The result was a strong 97.5% vote in favour, showing widespread shareholder support of the company’s updated climate strategy.
We were particularly pleased to see that Unilever’s decarbonisation roadmap now provides more detail, especially on indirect emissions. In response to our input, the company added a clear graphic in its reporting, outlining specific emissions reduction measures through to 2030 and quantifying each action’s contribution to overall emissions reduction. This added clarity improves understanding of Unilever’s strategy and carbon reduction plans.
Having pushed on climate-related lobbying and advocacy, we were pleased to see Unilever issue its first climate policy engagement review. This received a 100% score from InfluenceMap, a non-governmental organisation that assesses companies on their climate policy engagement. This is noteworthy, as only a handful of companies have achieved scores of more than 50%. The review analysed Unilever’s policy advocacy across over 600 associations and resulted in the company calling on some trade associations to improve their climate policy reporting and align their positions with the Paris Agreement.
We had a productive subsequent meeting with representatives from Unilever, the consultancy Volans (which had helped Unilever draw up the review), InfluenceMap and our other co-lead investor in Unilever. The discussion focused on how Unilever and investors can influence systemic change, adapt to new analytical methodologies and encourage standardisation in climate policy reporting.
KEY
No response
Discussions ongoing
Positive change
Met engagement target

Plastics engagement

While climate action is our highest environment-related engagement priority, we recognise that other areas also require investor attention.
The intersection between plastics and the drivers of oil demand have been recognised by the International Energy Agency, which predicts that petrochemicals, which include plastics, will become the largest driver of oil demand, accounting for almost 50% of the growth in oil demand by 2050. Given their significant environmental impact, particularly due to their persistence in ecosystems, we have continued some company engagement on this topic as well as participating in initiatives aimed at influencing policy measures.
The outcomes of our engagement on plastics in 2024 are set out below.
Procter & Gamble Consumer staples
Engagement with Procter & Gamble (P&G) continued in 2024 on its progress towards reducing the use of plastic packaging and adopting sustainable alternatives. In Europe the company is trialling biodegradable and paper-based packaging, which has been well received by consumers and trade partners. P&G reported a 13% reduction in virgin plastic use in 2023 and remains committed to 100% recyclable or reusable packaging by 2030. It also highlighted the potential for product sustainability to drive premium pricing, attract new customers and deliver operational efficiencies.
Unilever Consumer staples
Continuing collaborative engagement from 2023, we followed up with Unilever to discuss its progress in reducing its use of plastics. We had been pushing for a reduction of single-use plastics and disclosure of non-plastic packaging use. The company has updated its plastics and packaging targets, aiming to reduce virgin plastic use and improve recyclability, with new timelines for rigid plastics (2030) and flexible plastics (2035). Unilever is focusing on solutions such as paper-based packaging and concentrated products, scaling successful projects to suit different markets. Collaboration with other businesses and pushing for better recycling regulations are priorities.
Plastics policy engagement
In June 2024, we signed an investor statement calling on petrochemical companies producing plastics to transition to safe and environmentally sound practices by reducing their fossil fuel dependency and eliminating their use of hazardous chemicals.
In April, we co-signed a letter organised by the PRI and other partners, urging negotiating governments to commit to a robust, internationally binding agreement to combat plastic pollution. The recipient governments are members of the Intergovernmental Negotiating Committee (INC) which has been tasked by the UN to draft a legally binding agreement by the end of 2024. In November, nearly 200 countries participated in a week-long United Nations-backed summit in Busan, South Korea, which, unfortunately, concluded in early December without securing a legally binding agreement on how to address plastic pollution in the future.
KEY
No response
Discussions ongoing
Positive change
Met engagement target

Biodiversity engagement

In 2023, we joined the new Nature Action 100 engagement initiative, a global investor engagement initiative inspired by the work of Climate Action 100+. We co-signed letters to 100 companies deemed to be systemically important in reversing nature and biodiversity loss by 2030. In 2024, we commenced engagement with three of our portfolio holdings: AstraZeneca, McDonald’s and Zoetis.
The outcomes of our engagement on biodiversity in 2024 are set out below.
AstraZeneca Health care
At a meeting with AstraZeneca in 2024, we focused on governance, risk management and targets on biodiversity. AstraZeneca’s board oversees the company’s efforts around biodiversity and natural capital, and the company is developing a framework to assess biodiversity risks across its value chain by 2024, aiming for sustainable sourcing of all critical materials by 2028. It plans to set future goals aligned with guidance from the Taskforce on Nature-related Financial Disclosures. Since the meeting, Nature Action 100 has issued its benchmark scoring for all 100 companies, and we have sought a follow‑up meeting to discuss these results.
McDonald’s Consumer discretionary
McDonald’s responded to initial correspon­dence from Nature Action 100, explaining how it integrates sustainable practices, biodiversity protection and regenerative agriculture into its operations, and noting that it is aiming for deforestation-free supply chains by 2030. Since then, we have made several attempts to arrange a meeting, but the company has been unresponsive. We have co-filed a shareholder proposal on this topic asking for the company to prepare a public report assessing the extent to which its supply chains and operations impact biodiversity and are vulnerable to biodiversity loss (see the voting section for details).
Zoetis Health care
In October 2024, we met Zoetis to discuss aligning the company’s sustainability strategy with biodiversity goals. We discussed its biodiversity priorities, related materiality assessments, antibiotics use and the sustain­ability of its packaging. Zoetis committed to incorporating biodiversity more fully into its future materiality assessments, highlighted a shift from antibiotics to preventative health care solutions, and shared insights on fostering collaboration with stakeholders to enhance environmental practices, including plastic reduction pilots and broader engagement initiatives.
The Principles for Responsible Investment’s Spring initiative for nature
We are represented on the Advisory Committee of the Principles for Responsible Investment’s Spring initiative for nature. The initiative focuses on forest loss and land degradation, policy alignment aimed at decoupling economic activity from deforestation, and broader responsible political engagement. We are co-lead investor for engagement with L’Oréal, with initial outreach achieved with the company in 2024.