(Bloomberg) -- Legal & General Investment Management plans to turn up the pressure on companies to cut emissions and prepare for a lower carbon world.

Four years after the asset manager committed to engaging with about 80 of the world’s largest polluters, LGIM said Wednesday that it will expand its program to cover more than 1,000 companies that are together responsible for over 60% of the greenhouse gas emissions produced by publicly traded companies. LGIM, which oversees 1.2 trillion pounds ($1.6 trillion) of assets, will vote against companies’ management and may sell their holdings if the corporations fall short of the London-based firm’s minimum standards, including a comprehensive disclosure of emissions.

With the realities of climate change on display from California to the Arctic, an increasing number of investors are pressing companies to do more, and with greater urgency. The message is getting through, with companies ranging from HSBC Holdings Plc to Walmart Inc. unveiling net-zero emissions plans.

“We’ve seen a huge amount of improvement with companies embracing challenges, even in sectors we thought would not be possible to move, so we are now starting to challenge ourselves to go even further with this net-zero goal,” Meryam Omi, head of sustainability and responsible investment strategy at LGIM, said in an interview. “We are sending the message of the importance of embracing this transition and that companies shouldn’t be left behind.”

LGIM said it intends to “ratchet up” the stringency of its standards and sanctions. Since launching its original climate impact pledge in 2016, LGIM has voted against and divested from companies it deemed “poor climate performers,” including Exxon Mobil Corp.

Legal & General Group Plc’s investment arm also said it would publish climate ratings for the more than 1,000 companies on its website under a “traffic light” system. It will take into account such issues as climate disclosures, company policies and participation in relevant sector initiatives and standards when creating its ratings.

About 500 companies that have red lights, and where LGIM has a large holding, will receive a letter highlighting their rating and any potential sanctions, the company said.

LGIM is expanding its ambitions on climate engagement to contribute to achieving net-zero carbon emissions globally by 2050, a key part of realizing the temperature goals of the Paris Agreement on climate change.

“Inaction on climate change threatens the long-term stability of the market, but we know engagement with consequences can get companies to change,” said Omi. “The challenge is having more speed and scale.”

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