CCLA Investment Management has launched a public consultation into air pollution – and actions investors can take – in conjunction with Guy’s & St Thomas’ Foundation.
The companies said the global cost of health damages from PM2.5 air pollution, those associated with transportation, was estimated to be $8.1trn, equivalent to 6.1% of the world’s GDP.
Further, it is estimated there are 43,000 adult deaths a year in the UK due to long-term exposure to air pollution, making it the second-leading global risk factor for death after high blood pressure.
Businesses that can reduce their air pollution footprint and embrace cleaner technologies could position themselves better for future growth, while companies that fail to actively address air pollution impacts could increasingly face regulatory penalties, rising costs, shareholder activism, and declining consumer trust.
“The air we breathe matters for all of us,” said Matt Lomas, engagement director – investment, at Guy’s & St Thomas’ Foundation’s endowment. “Air quality should be a concern for investors given the impact poor air quality has on people, planet and increasingly businesses as companies’ contributions become more understood. We know that by working together as investors we can work with companies to reduce their negative impacts on the environment and health.
“Alongside CCLA we are calling on investors and businesses to come together to put air pollution on their sustainability agendas. Via collaboration we can take meaningful action, and in doing so, have a significant positive impact for people and planet as well as business resilience.”
The consultation, conducted by Chronos Sustainability, opened yesterday (4 November) and is collecting responses until 17 December. It invites responses from asset owners, asset managers, companies, non-profit organisations, government agencies, and academics with expertise in air quality, on how investors can take steps to tackle air pollution.
Amy Browne (pictured), director of stewardship at CCLA, said air pollution threatens both human and planetary health and is a “sustainability blind spot for many investors”.
“Healthy businesses, and by extension strong investment returns, require healthy communities and a thriving environment.
“As responsible stewards of our clients’ capital, we have a duty to encourage investee companies to minimise their negative impacts on people and the environment, so we jumped at the opportunity to partner with Guy’s and St Thomas’ Foundation on this important initiative. Our aim is to mobilise the investment community into action and to bring down the level of toxic pollution in the air that we breathe, the communities in which we live and in the habitats that produce our food and protect nature’s bounty.”
CCLA has also worked on investor action initiatives in the areas of mental health, and worker rights, and supported a young care leavers scheme.
