Net Zero

While the fund wants the companies it invests in to have clear targets for emissions reductions, it hasn’t explicitly asked them to reach net zero emissions by 2050, according to Ihenacho. The companies’ goals still have to be compatible with the Paris Agreement, with the fund focusing on their planned path toward the targets, she said in an interview.

“Our expectations are well anchored towards zero in 2050,” Ihenacho said. “What’s important to us is to understand how the companies think they will get there. One thing is to say that there should be zero in 2050. We are concerned with the short-term and medium-term and long-term goals. We believe this is just as important.”

Asked about a recent adoption of portfolio-warming metrics by the French insurer and investor Axa SA, Ihenacho said that rising temperatures “is just one” of the target figures the fund includes in its assessment of climate risks.

Read more: ‘Portfolio Warming’ Is the New Climate Anxiety for Fund Managers

Here’s the full list of 2020 exclusions:

• AGL Energy Ltd
• Anglo American Plc
• Glencore Plc
• RWE AG
• Sasol Ltd
• ElSewedy Electric Co
• Vale SA
• Canadian Natural Resources Limited
• Cenovus Energy Inc
• Imperial Oil Limited
• Suncor Energy Inc
• Centrais Eletricas Brasileiras SA
• Formosa Chemicals & Fibre Corp
• Formosa Taffeta Co Ltd
• Page Industries Ltd

Earlier exclusions of Drax Group Plc, AECOM and Texwinca Holdings Ltd were revoked, while four companies including BHP Group Ltd were placed on an observation list.