Legal & General Investment Management, Britain’s biggest asset manager, said on Tuesday it would drop four companies from a number of its funds over their “insufficient” response to the challenge of climate change, including U.S. insurer AIG.
The others to be divested are Chinese lender Industrial and Commercial Bank of China, U.S. utility holding company PPL Corporation and Chinese dairy products holding company China Mengniu Dairy.
All had either not responded adequately to corporate engagement or had breached LGIM’s “red lines” around involvement in the coal sector, their carbon disclosures or their links to deforestation, the money manager said in a statement.
They join nine other companies previously excluded for similar failings by LGIM, which manages 1.2 trillion pounds ($1.7 trillion) in assets, including U.S. oil major Exxon Mobil and Korea Electric Power Corporation.
[Simon Jessop and Elizabeth Howcroft]