Investor Coalition Calling for Government Action on Climate and Mandatory Reporting Grows to $52 Trillion
An investor statement calling on global governments to take a series of actions to address the climate crisis has been signed by 733 institutional investors from around the world, representing more than half of all assets under management globally.
Officially launched today, just prior to the COP26 climate conference, 2021 Global Investor Statement to Governments on the Climate Crisis – developed by net zero-focused organization the Investor Agenda* – calls on global governments to implement a set of actions geared towards helping mobilize investments to address the climate crisis, including outlining roadmaps to decarbonize emissions-intensive sectors and implementing mandatory climate disclosures.
Since ESG Today reported on the initiative in September, additional investors have joined the effort, which now represents assets of more than $52 trillion, with signatories including some of the world’s largest investors, including State Street Global Advisors, PIMCO, AMUNDI, Fidelity International, Aviva and DWS.
Paul Simpson, Chief Executive Officer of CDP and Investor Agenda Steering Committee member, said:
“The level of support from the investor community for the Global Investor Statement shows once again that there is huge potential for the financial system to serve as an enabler in the global economy’s transition towards net-zero. Short-term action – what happens within the next five years – is likely to determine whether net-zero by 2050 is possible.”
The statement sets out five priority actions for governments. These include strengthening 2030 Nationally Determined Contributions (NDCs) to align with limiting warming to 1.5-degrees Celsius; committing to domestic mid-century net-zero emissions targets, including interim goals and decarbonization roadmaps for carbon-intensive sectors; implementing policies to deliver on climate targets, such as carbon pricing, phasing out thermal coal-powered electricity generation, and removing fossil fuel subsidies; ensuring that COVID-19 economic recovery plans support the transition to net-zero emissions, and; committing to implementing mandatory climate risk disclosure requirements aligned with TCFD recommendations.
The statement also highlights the opportunities for countries that implement the recommended targets and policies, and the dangers for those who lag, with effective climate policies likely to make countries more attractive destinations for capital and investment.
Fiona Reynolds, CEO of PRI, and member of the Investor Agenda Steering Committee, said:
“The financial services industry acknowledges that it has a vital role to play in facilitating the transition to net zero, but the industry can’t achieve this alone. Firms across the sector need national and international policy to reflect their own commitments to addressing climate change. The Global Investor Statement shows the scale of ambition to make meaningful strides towards net zero from across the sector, and challenges world leaders to match these pledges, as well as to back up promises with tangible action.”
Click here to view the investor statement and for a complete list of signatories.
*The Investor Agenda was founded in 2018 by the Asia Investor Group on Climate Change, CDP, Ceres, Investor Group on Climate Change, Institutional Investors Group on Climate Change, Principles for Responsible Investment and UNEP Finance Initiative.