Fund Management
Prominent Activist Investor Demands Urgent Action On Climate Change

Chris Hohn, founder and portfolio manager of TCI Fund Management Limited, outlined how to combat climate change at the London Value Investor Conference this month.
Activist investor Chris Hohn, famous for his tussles with firms
over the past two decades, called for urgent action to
tackle climate change at the London Value Investor Conference on
Thursday, saying credible climate action plans and long-term
targets are vital.
“We are running out of time on climate change,” Hohn, founder and
portfolio manager of TCI Fund
Management Limited said. Drought, famine, heatwaves,
forest fires are increasing rapidly whilst emissions across
companies are rising, he warned.
“Perhaps even more catastrophic climate events are needed to
force companies to act,” he added.
“All firms need a credible climate action plan, with long-term
targets. Emission disclosure alone is inadequate,” he explained.
“Private companies need to step up. Regulation is needed on
private firms, not just on public ones. A voluntary regime will
never work,” he said.
He believes that a wave of litigation is coming for
companies who take inadequate action on climate change. He cited
the ground-breaking judgement by the Hague District Court last
May ordering Shell to reduce its global net carbon emissions by
45 per cent by 2030, compared with 2019 levels, which it is
appealing against.
“With climate change being a long-term threat to investment,
industry needs to drive regulation,” he added. “We need
industry-led regulation to make it more effective. Governments
need to assist industry too through taxes and subsidies,” he
said.
He believes this will work in a company’s interests, saying that
“greener” firms will have a competitive advantage over higher
polluting ones. Linked to this, he cited the benefits of
investing in the US railway industry.
Hohn established The Children’s Investment Fund Management (TCI),
a London-based hedge fund in 2003. It now has $27.1 billion of
assets under management as of 30 June 2019 and is often listed
among the world’s best-performing funds. A controversial
figure, in 2007, after acquiring 1 per cent of the shares of
major Dutch bank ABN AMRO, Hohn's TCI led an attack demanding
that the bank split up or sell to the highest bidder to produce
shareholder value.The lender was ultimately split and sold to
Royal Bank of Scotland, Fortis, and Banco Santander
which was a major contributing factor in the downfall of
both RBS and Fortis.
Hohn, worth an estimated $5 billion according to the Forbes
billionaires list in 2020, is known for giving more than $4.5
billion to The Children’s Investment Fund Foundation which
focuses on improving the lives of children living in poverty in
sub-Saharan Africa and India. Key areas of focus include climate
change, family planning, malnutrition, neglected tropical
diseases and anti-human trafficking work. He is also a prolific
contributor to the cause of combatting climate change.