Investors From Blackrock to HSBC Call for Better Emissions Testsby
A group of institutional investors with a total of 12 trillion euros ($13 trillion) of assets under management have called for changes to be made to the European Union’s carbon emissions-testing program for road vehicles.
The Institutional Investors Group on Climate Change has 118 members including BlackRock Inc., Aberdeen Asset Management Plc and HSBC Investments. They are urging for the EU to restore confidence in testing procedures and examine vehicle performance while driving on the road rather than just in laboratories. The investors are also asking for other pollutants to be tested for.
This request comes after the Volkswagen AG emissions scandal that shed light on how one of the world’s largest carmakers had installed software to deliberately deceive emissions testers. This crisis has wiped more than 24 billion euros from the company’s market value. Investors are looking to safeguard their portfolios and tighten the rules to try to ensure it cannot happen again.
“Some investors have lost significant investment value. Trust in emissions data urgently needs to be restored so that investors can be sure that official data is reliable,” Stephanie Pfeifer, chief executive of the IIGCC, said in the letter addressed to EU policymakers.