HDELY Heidelberg Materials AG (PK)

   By Maitane Sardon 
 

A group of investors with over $2 trillion in assets under management is calling on the world's largest construction-material firms to cut their emissions, warning that those that fail to do so may face divestments going forward.

In a letter sent on Monday to chairs of the boards of CRH PLC (CRG.DB), LafargeHolcim (HCMLY), HeidelbergCement AG (HEI.XE) and Compagnie de Saint-Gobain SA (SGO.FR), the investors outlined the steps companies should take to manage climate-related risks and reduce their carbon emissions in line with the Paris Agreement.

Some of the investor signatories include Hermes Asset Management, BNP Paribas Asset Management, Aberdeen Standard Investments, the Local Authority Pension Fund Forum, Ethos Foundation and Sarasin & Partners

"The cement sector needs to dramatically reduce the contribution it makes to climate change. Delaying or avoiding this challenge is not an option. This is ultimately a business-critical issue for the sector," said Stephanie Pfeifer, chief executive of the Institutional Investors Group on Climate Change.

The investor group is asking companies to commit to being carbon neutral by 2050 and to provide greater climate-related financial disclosures. They are also urging companies to engage with policy makers to support measures to mitigate climate change.

The cement sector, which produces 7% of the world's emissions, is the second-highest emitter of carbon dioxide according to the International Energy Agency. With global cement production expected to grow up to 23% by 2050, the IEA expects emissions to rise by 4%.

Write to Maitane Sardon at maitane.sardon@dowjones.com

(END) Dow Jones Newswires

July 22, 2019 07:17 ET (11:17 GMT)

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