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April 28, 2015

Climate Nonprofits Push Funds to Drop Fossil-Fuel Holdings

Two nonprofits with wealthy and prominent supporters are teaming up on a legal strategy to prod big investment funds to pull their assets from companies that depend on fossil fuels, The Wall Street Journal writes.

The Climate and Pensions Legal Initiative was launched last week by the Asset Owners Disclosure Project, which rates funds on their preparedness for climate change, and Client Earth, a green group co-founded by rock musicians Brian Eno and Chris Martin and backed by London hedge-fund manager Christopher Hohn's foundation.

Julian Poulter, CEO of the Asset Owners Disclosure Project, said the groups will press pension-fund managers and trustees to take climate risks into account in designing their portfolios, arguing they have a fiduciary duty to do so given the long-term nature of their investments. On Monday his organization released its latest annual ranking of 500 of the world's largest funds for climate-change readiness.