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FTSE 100 Firms Urged to Do More to Address Climate Change

Investor Group Warns of Fines and Legal Challenges if Firms Fail to Comply

The FTSE 100's largest companies are being urged to do more to address climate change, with an investor group warning of fines and legal challenges if they fail to comply. The warning comes as the UK government prepares to introduce new rules requiring large companies to publish detailed plans on how they will reach net zero emissions by 2050.

The investor group, which includes the Church of England Pensions Board and Legal & General Investment Management, said that companies must take urgent action to reduce their emissions. They warned that failure to do so could lead to fines, legal challenges, and a loss of investor confidence.

What the FTSE 100 Firms Need to Do

The investor group has set out a number of steps that FTSE 100 firms need to take to address climate change:

• Set ambitious targets for reducing emissions
• Publish detailed plans on how they will reach net zero emissions by 2050
• Invest in renewable energy and energy efficiency
• Engage with their suppliers and customers on climate change
• Report on their progress on a regular basis

The investor group said that companies that fail to take these steps could face fines, legal challenges, and a loss of investor confidence. They also warned that companies could be held liable for the damage caused by climate change.

The Government's Role

The UK government is also taking steps to address climate change. The government has introduced a number of new rules requiring large companies to publish detailed plans on how they will reach net zero emissions by 2050. The government is also providing financial support for businesses to invest in renewable energy and energy efficiency.

The government's actions are in line with the recommendations of the Intergovernmental Panel on Climate Change (IPCC). The IPCC has warned that urgent action is needed to limit global warming to 1.5 degrees Celsius. The IPCC has also said that the world needs to reach net zero emissions by 2050 in order to avoid the worst effects of climate change.

The Business Case for Climate Action

There is a strong business case for climate action. Companies that take steps to reduce their emissions can save money on energy costs, attract new customers, and improve their reputation. They can also reduce their risk of being fined or sued for climate-related damages.

The FTSE 100's largest companies have a responsibility to take action on climate change. They must set ambitious targets for reducing emissions, publish detailed plans on how they will reach net zero emissions by 2050, and invest in renewable energy and energy efficiency. Failure to do so could lead to fines, legal challenges, and a loss of investor confidence.