Hedge Fund TCI to Demand More Green from Companies

February 8, 2020 James Heinsman Company Spotlight

A carbon footprint is historically defined as the total emissions caused by an individual, event, organization, or product, expressed as carbon dioxide equivalent.

An unlikely investor is taking drastic steps to bring sustainability to his portfolio. Sir Christopher Hohn, the British head of the New York hedge fund TCI, will use his $30 billion worth of influence to demand that the companies in his portfolio disclose their carbon footprint and reduce their use of fossil fuels and greenhouse gas emissions. Hohn says if they don’t, he will, “oust their boards or dump their shares.”

Hohn is a major contributor to Extinction Rebellion, and activist group through which he will be able to invest funds from TCI Fund Management in sustainable businesses.

Currently, not all Hohn’s investments are particularly environmentally friendly. TCI has a stake in a Spanish company called Ferrovial which is an airport operator one of whose airports is London’s Heathrow. Ferrovial also owns Aena, another company that runs airports. Airplanes are one of the world’s major contributors to climate change with 2% of all emissions of carbon worldwide.

Hohn is less interested in divesting than he is in persuading companies to take a more responsible course when it comes to global warming and sustainable business practices.

Some of TCI’s portfolio companies include Moody’s, Google, Charter Communications, and Canada Pacific Railway. Hohn said that if these companies do not disclose their environmental impacts, he will have TCI “vote against their directors.” He stated that he will encourage asset managers to dismiss fund managers who will not adhere to these recommendations to be transparent about their carbon footprints.
“Asset owners should fire asset managers that do not require such disclosure,” Hohn explained.

Extinction Rebellion, Sir Christopher Hohn, TCI Fund Management,

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