Nordea Asset Management is leading 21 investors in a letter to companies involved in the construction of Vung Ang 2, a coal plant in Vietnam.

The Vung Ang 2 coal-fired power plant will further expand development of a site proximate to plants that have already caused major environmental pollution accidents in the area including spilling toxic chemicals into the ocean.

“Vung Ang 2 is fast becoming the prime exhibit in the case against companies taking on transition risk on coal plants, not to mention the obvious conflict with the commitments of those same companies to align with the Paris agreement,” Eric Pedersen, Head of Responsible Investments at Nordea Asset Management, said.

The Nordea Asset Management led consortium of investors, representing €4.7trn in assets under management, urged companies in the letter associated with Vung Ang 2 to withdraw from the project, citing the high climate-related financial and reputational risks associated with the project. The letter stresses the important role listed companies play in addressing climate change, as well as the risk they pass along to investors when failing to address climate risk exposure.

NAM says it is committed to continuing its engagement activities concerning the Vung Ang 2 project and is urging investors to make commitments to end involvement in new coal projects in keeping with the recommendation of the United Nations Secretary General.