(Thursday 19th June) A group of investors representing over $795 billion in assets under management has issued a public statement urging high-emitting companies to take stronger action on air pollution, calling it a “silent yet deadly” public health and financial risk.
Coordinated by responsible investment NGO ShareAction, the investor group warns that corporate air pollution is severely underestimated in financial risk assessments and corporate sustainability strategies. This is despite its impacts on workers and the communities and environments that businesses operate in.
Signatories of the statement include Achmea, NEST and Ethos Foundation.
Justine Holmes, Clean Air Lead at ShareAction, said: “Air pollution is linked to millions of premature deaths annually, yet frustratingly few companies are acknowledging and acting to address this critical issue.
“This poses dangers for public health and it's an underappreciated financial liability that investors are sounding the alarm on. They want to know that companies are managing these growing health and financial risks appropriately.
“Companies in the highest emitting sectors need to step up urgently on what they are disclosing around air pollution and start reducing the emissions of harmful pollutants that are negatively impacting people’s health and the economy.”
According to Unicef, 1 in 8 deaths can be attributed to air pollution globally. Dirty air has overtaken tobacco use as the world’s second leading risk factor for premature death. At the same time, governments are implementing stricter air quality regulations and corporate disclosure standards such as the Sustainability Accounting Standards Board (SASB) acknowledge air pollution is a significant business concern.
In spite of these developments, too few companies acknowledge air pollution as a material business issue, the investors say. A lack of emissions disclosure and limited management of associated health risks not only exposes communities and workers to harm – it also creates reputational, regulatory, and legal risks for businesses and their shareholders. More broadly, the World Bank estimates that health damage caused by air pollution costs the global economy 5% of GDP annually, with this figure expected to rise.
Several leading companies have already begun tackling air pollution through initiatives such as the World Economic Forum’s Alliance for Clean Air. Investors hope others will follow suit to drive long-term health, productivity, and economic resilience.
The signatories are inviting more investors to join the initiative and sign on to the declaration and plan to engage directly with targeted companies, policymakers and standard-setting bodies throughout the year.
Notes to editors
The statement can be read in full here and the full list of investor signatories is the following Achmea, Barrow Cadbury Trust, CMA Impact Inc, Domini Impact Investments, Ethos Engagement Pool International, Ethos Engagement Services Client, Ethos Foundation, Future Group, Greenbank, LifeArc, Miller/Howard Investments, NEST, Region VI Coalition for Responsible Investment, Sisters of the Humility of Mary, Stichting Pensioenfonds Huisarten, United Church Funds.
