Legal and General Investment Management (LGIM) has said it will take action against companies that are not addressing the risks of climate change.

LGIM, one of the biggest investment funds in Europe, said it would exclude offending firms from its Future World index fund.

Where those firms featured in its other equity funds, it would vote against re-electing the chairs of their boards.

Where this places corporates, such as oil companies, faced with the potential for stranded assets-  that are valued on the balance sheet but may never be extracted because of climate changes fears- becomes an interesting question.

It will be a point to raise in Financial Director‘s interview with BP’s CFO Brian Gilvary later this week.