Leading up to the meeting of advanced economy world leaders at this weekend’s G7 Summit, a major group of investors is calling on global governments to move forward with more aggressive climate policy.

More than 450 investors representing over $41 trillion in assets have launched the 2021 Global Investor Statement to Governments on the Climate Crisis, a joint statement urging a global ‘race-to-the-top’ on climate policy, and warning governments of the opportunity costs of missing out on a massive wave of investment in tackling the climate crisis.

The investor statement was developed by The Investor Agenda, a group of sustainable investment focused organizations*, and calls on world governments to undertake a series of policy actions to tackle the climate crisis.

CDP Chief Executive Officer and Investor Agenda Steering Committee member, Paul Simpson, said:

“Achieving the net-zero goal by 2050 or sooner, with interim science-based targets, will only be possible if investors, governments and companies work closely together. Through the Investor Agenda statement, investors around the world have made their voice clearly heard: leadership is needed from every single government to drive action on climate change”.

Some of the key actions urged by the investors include strengthening the governments’ interim 2030 emissions reduction goals (Nationally Determined Contributions, or NDCs) and setting mid-century net zero targets, introducing policies including the end of fossil fuel subsidies and phasing out thermal coal-based electricity generation, and instituting COVID-19 economic recovery plans that support the transition to net-zero emissions.

The group also urged the governments to commit to implementing mandatory climate risk disclosure requirements aligned with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.

According to the statement, the investors are urging governments to commit to these actions ahead of the 26th United Nations Climate Conference of the Parties (COP26) in November.

In the statement, the investors said:

“As the world prepares to gather for the 26th United Nations Climate Change Conference of the Parties (COP26), we encourage all countries to significantly strengthen their Nationally Determined Contributions (NDCs) for 2030 and to ensure a planned transition to net-zero emissions by 2050 or sooner. While we recognize the differentiated responsibilities and respective capabilities of countries, we believe that those who set ambitious targets in line with achieving net-zero emissions, and implement consistent national climate policies in the short-to-medium term, will become increasingly attractive investment destinations. Countries that fail to do so will find themselves at a competitive disadvantage.”

Click here to read the full 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.