Legal & General Investment Management (LGIM) is divesting in ExxonMobil and four other companies who are failing to address climate change, Reuters reports.
The divestment applies only to LGIM’s Future World Fund portfolio, set up for clients who want to express a conviction on ESG themes.
The decision was based on results from the company’s second annual ranking of companies who are leading in climate change efforts or lagging behind. Per the report, LGIM will also pull financing from Hormel Foods, Korea Electric Power Corp, Kroger, and MetLife.
In the case of ExxonMobil, the company did not meet LGIM’s key minimum requirements to be considered a leader in sustainability, including on emissions reporting and targets.
Last year, LGIM ranked eight companies as lagging behind; however, two were reinstated after adapting their environmental policies.
