Asian investor coalition pursuing engagement with Asia’s utilities industry

The Asia Investor Group on Climate Change (AIGCC) has released a progress report for the coalition’s “Asia Utilities Engagement Program” (AUEP). AUEP was launched by 13 investors with a combined assets under management (AUM) of $8.8tn who set out to pursue an engagement agenda focused on coal and gas phase outs, governance, disclosures and risk management among other factors. According to the AIGCC, the sector is responsible for about 23% of global emissions. The findings of the report suggest that there are reasons to be optimistic, “Asian electric utilities have been dedicating increased resources to decarbonisation strategies. We were encouraged to see a 2050 net zero commitment from focus company CLP in particular, with a commitment to phase out coal by 2040. There were also aspirational net zero ambitions set, such as Tenaga Nasional Berhad’s 2050 and PLN’s 2060 targets. The focus must now shift to implementation and a comprehensive approach to financing a just transition away from fossil fuels”.