Climate: Investors ask chemists to step up

A group of large investors, with a weight of more than 4,000 million dollars, launched an appeal on Thursday to ask the largest European chemical groups, a highly carbon-emitting sector, to redouble their efforts in the face of climate change.

“The big European chemical companies are not acting fast enough to help the world limit global warming to 1.5°C”, says this appeal signed in particular by the giants of asset management in Europe Amundi and Legal and General , who say they are “deeply concerned”. Their progress “will be taken into account” when voting at general meetings, warns the investor group in its statement.

Investors point to 13 of the largest companies in the sector in Europe, among which are the French Air Liquide, the Belgian Solvay, the Swiss EMS-Chemie and Givaudan, the German BASF and the multinational LyondellBasell. Although they are not always known to the general public, “these companies manufacture many essential products for modern life, particularly paint, clothing and smartphones,” the NGO ShareAction, which coordinates this call, specifies in a press release.

“Set specific goals”

“There are clear steps these companies can take to decarbonise their operations,” as the sector accounts for 6% of global greenhouse gas emissions, ShareAction adds. Investors thus ask companies to set specific goals for the implementation of electrified chemical production, the increase in the share of renewable energies in their energy sources or the transition to non-petrochemical raw materials.

“Some of these companies have made welcome progress” since 2021, but that’s not enough, according to the investor group, which is calling on leaders for “more ambitious decarbonisation plans”.

“Chemicals will continue to be a critical sector in 2050, but only companies capable of disengaging from fossil fuels” will be part of the market, the signatories continue. They ensure “that a credible strategy to align with” a maximum global warming of 1.5°C, according to the Paris Agreements, “is necessary to remain competitive.”