Consultation launched to drive corporate action on air pollution

Guy’s & St Thomas’ Foundation and CCLA Investment Management have today launched a public consultation in a drive to mobilise investor action to tackle corporate air pollution.

The consultation – which will remain open until 17th December – aims to generate recommendations from investors, companies, NGOs and academics for corporate action on air pollution.

Businesses of all kinds contribute to air pollution – some, of course, more than others – and the hope is that both businesses and investors will act to mitigate this.

The consultation will initially focus on companies involved in road transport, with this sector being the largest source of NO2 and the second largest source of PM2.5 and PM10 in the UK, not to mention the fact that company vehicles account for 15% of all vehicles in the UK’s.

A summary of the findings is expected to be published by early February 2025.

Amy Browne, Director of Stewardship, CCLA said: ‘Healthy businesses, and by extension strong investment returns, require healthy communities and a thriving environment. Air pollution threatens both human and planetary health and is a sustainability blind spot for many investors.

‘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 (Churches, Charities and Local Authorities  Investment Management Ltd) has its roots in the Church of England Investment Fund, which was set up in 1958 to allow church organisations to pool their funds for greater efficiency.

Acting on air quality is seen as a positive for businesses, with companies that fail to do so potentially leaving themselves open to regulatory penalties, shareholder activism and declining consumer trust.

This consultation represents just part of Guy’s & St Thomas’ Foundation’s 10-year programme to tackle poor air quality in major urban areas.

Matt Lomas, Engagement Director – Investment, at Guy’s & St Thomas’ Foundation’s endowment, said: ‘The air we breathe matters for all of us. 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. We believe that 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.’

Relevant parties can respond to the consultation here.