Half of global assets now back climate action

October 29, 2021

Investors with more than $52 trillion in assets under management have signed a statement to governments calling for urgent measures to end fossil fuel subsidies, phase out thermal coal-based electricity, and mandate climate risk disclosures.

The 2021 Global Investor Statement to Governments on the Climate Crisis was launched this week after public announcements in June and September. It comes ahead of the start of the COP26 conference in Glasgow on Sunday.

Investors say that government policies could unlock trillions of dollars of investment needed to combat the climate crisis. This includes policies to limit the global average temperature rise to 1.5 degrees above pre-industrial levels, credible commitments to net-zero greenhouse gas emissions by 2050, and transition plans for affected workers and communities.

Governments are also encouraged to avoid public investment in new carbon-intensive infrastructure in their Covid-19 economic recovery plans.

The statement includes significant investor support for mandatory climate risk disclosures in line with the Task Force on Climate-related Financial Disclosures (TCFD). Investors say they need “adequate information” on how companies assess and manage climate-related risks and opportunities.

The collective statement was developed by founding partners of the Investor Agenda which encourages investors to commit to developing a comprehensive Investor Climate Action Plan (ICAPs) and align investments to net zero by 2050 or sooner.

Signatories include State Street Global Advisors, PIMCO, Amundi, Legal & General Investment Management, Franklin Templeton, UBS Asset Management, Aegon, Insight Investment, AXA Investment Managers, DWS Group, Schroders, Sumitomo Mitsui Trust Asset Management, Fidelity International, Aviva, BNP Paribas Asset Management, and Allianz Global Investors.

Paul Simpson, chief executive of CDP and Investor Agenda Steering Committee member, said that the support from the investor community showed huge potential for the financial system to serve as an “enabler” in the net zero transition.

“Governments should see [this] call to action as further incentive for ensuring that robust roadmaps and 2030 science-based targets are agreed next week in Glasgow,” he said. “Investors stand ready to play their part in financing the transition, and that capital is ready and waiting to be allocated.”

The importance of the COP26 conference and its output was underscored by the release of the IPCC’s report in August that warned of catastrophic consequences if immediate action was not taken.

Find out more bout COP 26 and how it involved the investor community in the below Minerva Briefing: The Road to COP 26: