F&C makes commitment to tackling climate change

F&C recognises that climate change is one of the single biggest challenges facing the world today, and that unless we tackle it head on, the consequences will not only be detrimental for the environment but for the global economy as well.

F&C, as a responsible investor, is already taking a number of steps to reduce its own emissions, including the purchase of renewable energy for its London offices. Now, building on this commitment, F&C has signed an agreement with Climate Care to offset the remainder of emissions from its own operations.

David Logan, Chief Financial Officer for F&C, said: "Before offsetting what we cannot reduce, we need to look at how we can reduce our own 'carbon footprint'. We have already taken steps to do this. The business has been buying green energy since 2004 and our largest office in London has sourced 100% of its energy from renewable suppliers since 2005. We have also cut energy use through the use of movement detection lights, and we have reduced air-conditioning during out-of-office hours"

F&C will ensure that all the money it commits to Climate Care is invested in viable and verifiable emissions reduction projects which not only fight climate change but also bring benefits to communities. These include the introduction of energy efficient lamps for schools in Kazakhstan and more energy efficient cooking stoves in Mexico and Honduras.

"Millions of people, particularly mothers and their children die every year from inhaling smoke from inefficient stoves," said Logan. "Cleaner' cooking stoves have clear health benefits, as well as their environmental advantages."

In response to the recent questions highlighted in the media around the offsetting market, F&C has also published a paper setting out F&C's view on the key issues, and giving recommendations on good practice in this area.

Author of the paper, associate director Vicki Bakhshi from the Governance and Sustainable Invsetment team, said: "We believe that offsetting can be an important element of a wider climate change strategy for companies, and that the projects funded can be valuable both in terms of the emissions reductions they generate, and their wider sustainable development impacts.

"However, in this unregulated market, buyers must beware. We suggest a list of questions for companies to ask prospective offset providers, so that they can ensure the necessary checks and balances are in place. We also endorse the use of standards such as the Voluntary Carbon Standard and the Gold Standard to bring greater confidence to this market in the future" she concluded.