UniSuper has called out CSL for their implied lack of action on setting emissions targets.
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The CSL Limited (ASX: CSL) share price has jumped out of the starting blocks from the opening of trade on Friday.
CSL shares are now exchanging hands at $307.23, a 1.45% gain from the market open.
Let’s investigate further.
What’s up with the CSL share price today?
The CSL share price is gaining today despite superannuation giant UniSuper laying down the law to its portfolio holdings regarding climate risk exposure, in its latest climate risk report.
For context, as a part of its “net-zero emissions target,” UniSuper, “requires the companies (it) invests in to set targets” aimed at becoming carbon neutral “by the end of 2021”.
To illustrate, UniSuper calls out CSL for their implied lack of action on setting “Paris-aligned operational targets” by years’ end.
As a result, the superannuation company stated that “it’s disappointing they (CSL) have been slow in their adoption of emission reduction targets.”
In fact, according to UniSuper, CSL “hasn’t indicated (it) will be setting targets this year” either. Albeit admitting that CSL isn’t a high emitter, and has a “clear pathway to decarbonisation”.
What does this mean for CSL?
UniSuper laid out several “escalation strategies” it would employ if it is “still dissatisfied with the company’s decarbonisation approach”.
These include actions such as “supporting shareholder resolutions to encourage greater climate action” or “voting against company directors” including remuneration reports.
Moreover, if the “lack of action represents a material risk” to UniSuper, then it will opt to divest its holdings in CSL shares.
This may be a point for consideration for the CSL share price, should this actually occur.
CSL share price snapshot
The CSL share price has climbed around 9% year to date. This is behind the S&P/ASX 200 Index (ASX: XJO) return of around 14% since 1 January.
Moreover, CSL shares have struggled over the last 12 month’s, posting a return of only 2.5%. This has also lagged the broad index’s return of around 25% over the past year.
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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.