Until May 21, 2021, Chronos Sustainability Limited is consulting with stakeholders to create a framework for assessing responsible lobbying on climate change. Reclaim Finance provides recommendations to strengthen this framework and cover all dimensions of lobbying. The NGO stresses that such a demanding framework should be adopted by all climate initiatives – such as CA100+ or the IIAP – which are particularly deficient in this respect today.
Chronos Sustainability Limited has partnered with AP7, BNP Paribas Asset Management and the Church of England Pensions Board to develop a framework to help investors and other stakeholders assess whether and to what extent corporate lobbying is aligned with the objectives of the Paris Agreement. A consultation is open until May 21, 2021 to finalize this framework.
Reclaim Finance notes that the proposed framework represents a significant advance in understanding the types of activity associated with strong corporate performance on climate change policy engagement. However, the NGO indicates that several elements remain to be taken into account, including:
- The application of the framework to financial actors;
- The application of the framework to oil and gas companies;
- The quality of the information required in response to the various questions asked;
- The transparency of practices required;
- The use of the ISDS settlement mechanism by companies.
Reclaim Finance recommends that all financial climate initiatives adopt a rigorous framework for lobbying by financed companies and associated structures.