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UK's biggest money manager warns about climate disaster

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The world faces climate catastrophes and companies around the world must urgently address or face the ultimate sanctions of public companies.

This is not the message of the environmental movement, but the biggest money manager in the UK's Legal & General Investment Management, which manages the £ 1 trillion British pension fund investment in the UK.

The climate warning was the best of the list of concerns about how the company operates.

Other red lights included executive pay levels, lack of diversity in senior corporate roles, the role (and costs) of political lobbying and the quality of financial information provided by the auditor.

Justice and the general public are not merely signals of virtue.

The company decided to increase its 37% in 2018 against the election of about 4,000 directors. This included voting for more than 100 boards with only gender diversity.

Sacha Sadan, director of corporate governance at Legal & General, said relationships with corporate boards and executives are becoming more difficult.

"2018 was a record year as we continued to engage with our company on a wide range of issues using voting rights that could impact change on behalf of our customers,

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Carillion collapsed last year.

The collapse of Carillion, a construction and service company that pays high salaries and shareholder dividends and clears the health of the audience, just a few months before the sudden closure last year, caused a widespread anger and shone the standard of the company stewardship. In the UK.

A recent report from the National Assembly committee was skeptical about the appetite of the asset manager and the ability to improve the quality of the company's management.

Last month, the committee chairman said, "We are not confident that institutional investors will perform stewardship and can not rely on shareholder pressure."

Legal & General acknowledges that they also made a mistake.

Lessons learned

In 2012, the company backed the payment formula for CEO Jeff Fairburn, a homebuilder, Pesimon (Safim), who received a £ 100 million paid packet. Satan learned a lesson from the BBC. "Since then, we claim that the maximum wage payment is limited."

The best way for investors to exert pressure is not to become a shareholder of a company that sells or misbehaves their own stock.

Many fund managers claim they are willing to accept dividends from companies in the most controversial sectors, such as oil and tobacco, trying to "reform from the inside out."

Legal & General announced a list of companies that decided on SHARE last year, claiming they are ready to do so. Russia's oil company Rosneft, China Construction Bank and Subaru.

The Attorney General says that all eight people in the "blacklist" are contacting and trying. L & G provides positive evidence that the brand of shareholder participation or departure is indeed effective.

Many people in the UK can be more confident in this argument if the company that can actually feel the cold shoulders of the money managers in the UK includes a company closer to home.

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Shell president Ben van Beurden's salary has more than doubled over the past year.

For example, Royal Dutch Shell is the UK's largest dividend, earning as much as 5.8 per cent for its investors. Legal & General says it has succeeded in driving top executives' performance goals based on safety and environmental improvements rather than profit. They did not succeed in dealing with a generous amount of £ 17m last year.

The asset manager is the "master of the universe" in relation to notifying the company in a way that effectively votes on behalf of the investor. But they have a strong and own customer.

Many pension fund trustees are not convinced that retirement contributions from employees are embarrassing or making inadequate investments. The Church of England was delighted to learn that the pension system was invested in Wonga, a high-cost credit company now abolished.

More recently, and more importantly, Norwegian sovereign funds have decided to exclude some of their fossil fuel investments (ironically, at first all sources of money).

But what these examples show is that they are more aware of how conservation groups and citizens who manage the money are doing, and they want to disagree further.

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