Press note: Pension funds and asset managers are playing their part in the renewable revolution
The world’s largest brewer, Anheuser-Busch InBev (AB InBev), today announced its commitment to transition to 100% renewable electricity, as part of a wider engagement that has support from a coalition of 34 institutional investors across 8 countries managing over $1 trillion in assets. ShareAction coordinates the RE100 investor group which is calling on companies to publicly pledge to switch to 100% renewable electricity in their international operations by an agreed date.
AB InBev’s announcement sets an interim goal of sourcing all their purchased electricity from renewables by 2025. This commitment is significant as it accounts for around 90% of their total electricity consumption and is expected to reduce the company’s operational carbon footprint by 30%. This strategy will make AB InBev the largest corporate direct purchaser of renewable electricity in the global consumer goods sector, at around 6TWh of total electricity consumed. AB InBev’s membership brings to 89 the number of companies in the RE100 initiative, which is run by the Climate Group in partnership with CDP.
Major investors including Aegon Asset Management and Strathclyde Pension Fund wrote to the Belgian drinks giant in January expressing their desire to invest in environmentally sustainable companies. They asked AB InBev to consider switching to 100% renewable electricity for the environmental, reputational, and financial benefits.
Investors want to hold companies whose business models are geared towards the low-carbon economy. They understand the business case for renewable energy and recognise the long-term financial risk of less sustainable models.
Eoin Fahy, Head of Responsible Investing at KBI Global Investor said, “In the current political climate, with commitments to mitigate climate change under threat, it is even more important than ever that investors work together to encourage appropriate policy changes in the companies in which they invest. In joining the RE100 initiative companies such as Anheuser-Busch InBev are pressing ahead with real and substantive changes to the way they do business. This is clearly in the best interests of the environment and society at large, and – importantly – AB InBev’s shareholders too.”
Jeanett Bergan, Head of Responsible Investments at KLP said, “As the world’s greatest purchasers and users of energy, business and industries are best positioned to lead the shift from fossil fuel to renewables and reach the ambitions set out in the Paris Agreement. A clear message from corporates on a shift from fossil fuel to renewables is a language investors can understand. Collaboration among investors and owners of companies to push this agenda is most effective and powerful in driving the change. Investors should actively continue to engage corporates in this transition.”