Investors of $32 trillion call for faster action to combat climate change

Investors with more than $32tr in assets under management have called for governments to step up efforts to avert climate change as COP 24 continues in Poland.

Over 400 global investors including UBS and Aberdeen Standard have signed the 2018 Global Investor Statement to Governments on Climate Change saying that they believe more action is required and expressing the need for faster action.

The Statement is the single largest policy intervention to date from investors on climate change, and specifically asks governments to strengthen their Nationally Determined Contributions to meet the goals of the Paris Agreement and to enact policies to facilitate the world’s transition to a low-carbon economy. Three overarching priorities are highlighted in the Statement for global leaders to address: achieving the Paris Agreement’s goals; accelerating private sector investment into the low carbon transition and committing to improve climate-related financial reporting. Additional detail is provided in an accompanying briefing paper also shared with leaders.

In enforcing these policies in detail policies, the investors request governments “phase out thermal coal power”, “put a meaningful price on carbon” and “phase out fossil fuel subsidies.”

The Statement also stresses a collective “great concern” about the gap between current actions and those needed, noting the consequences of an otherwise “unacceptably high-temperature increase” and “substantial negative economic impacts”.

Without greater action, Schroders, which is a signatory to the statement, point to long-run temperature rises of around 4C, with $23tr of associated global economic losses over the next 80 years. This is permanent economic damage three or four times the scale of the impacts of the 2008 Global Financial Crisis while continuing to escalate.

Investors signing the statement include some of the world’s largest pension funds, asset managers and insurance companies, alongside faith-based groups, state treasurers and comptrollers, impact investors and venture capital funds.

The Global Investor Statement
is one of the actions of The Investor Agenda. Launched earlier this year, The Investor Agenda calls on investors to step up action on climate change. It provides a way for investors to directly report actions they are taking on climate change, and scale-up their commitment to act, across four key focus areas: Investment, Corporate Engagement, Investor Disclosure, and Policy Advocacy. The ‘Global Investor Statement’ comes under the Policy Advocacy activity.

    Share Story:

Recent Stories