Long-term institutional investors (389 representing more than USD 22 trillion in assets) have written to G20 leaders urging governments to stand by their commitments to the Paris Agreement at their upcoming Summit in Hamburg on 07- 8 July 2017.
Underscoring the urgency of action by G20 nations to implement the global climate pact and echoing a message previously delivered to the G7, investors call on G20 leaders to:
- Reiterate their support for and commitment to implement the Paris Agreement, including the delivery of their own Nationally Determined Contributions in full.
- Bring forward focused and targeted long-term climate and energy plans that will ensure their future actions align with commitments under the pact to keep global average temperature rise to well below 2°C above pre-industrial levels and preferably to 1.5 °C.
- Drive investment into the low carbon transition through aligning climate-related policies, phasing out fossil fuel subsidies and introducing carbon pricing where appropriate.
- Implement climate-related financial reporting frameworks, including supporting the Financial Stability Board Task Force on Climate-related Financial Disclosures’ recommendations.
“Investors are sending a powerful signal today that climate change action must be an urgent priority in the G20 countries, especially the United States,” said Mindy Lubber, CEO and president of the sustainability nonprofit organisation Ceres, which directs the Ceres Investor Network on Climate Risk and Sustainability. “Global investors are eager to open their wallets to a low-carbon future, but it won’t happen without clear, stable policy signals from countries worldwide - in particular the U.S., whose withdrawal from the Paris Climate Agreement is hugely troubling.”
Stephanie Pfeifer, CEO of the Institutional Investors Group on Climate Change (IIGCC) in Europe added, “Investors recognise the global transition to a low-carbon, clean energy economy is now firmly underway. They also want to make well-informed decisions that will help ensure Paris Agreement signatories can deliver swiftly on their national commitments. It is vital that every signatory across the G20 adopts policies that drive better disclosure of climate risk, curb fossil fuel subsidies and put in place strong pricing signals sufficient to catalyse the significant private sector investment in low carbon solutions.”
Emma Herd, CEO of the Investor Group on Climate Change (IGCC) in Australia said: “Maintaining policy commitments which drive strong growth in low carbon investment is key to tackling climate change. While the private sector can provide the investment required to build a secure, affordable and low emissions global energy system, we urge the G20 to set strong policy signals which provide the investment certainty needed to drive trillions of dollars into new clean energy investment opportunities.”
Paul Simpson, CEO of CDP added: “The G20 must move swiftly to put in place the frameworks required to improve the availability, reliability and comparability of climate-related information, and to ensure carbon pricing signals which will drive the incorporation of climate risks and opportunities into financial assessments. That is why investors are calling on G20 leaders to prioritise rulemaking by national financial regulators to require disclosure of ‘material’ climate risks in line with the recent recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosure (TCFD).”
“Signatories to the PRI have identified climate change as the number one material risk to their investments," said PRI managing director Fiona Reynolds. "The US decision to withdraw from the Paris accord, while disappointing, has actually galvanised many investors and governments into taking greater action on climate policies, as we saw with the recent success of climate resolutions at Exxon and Occidental as well as through investor outreach to G20 countries. These moves demonstrate how investors have become increasingly vocal about climate change. We also need to remember that governments will come and go but environmental issues are here to stay.”
Notes for Editors
This letter, an investor-led initiative, was originally launched for the G7 with the support of over 200 investors representing USD15 trillion AUM to highlight how governments can respond effectively to the needs of investors and the private sector through the pursuit of robust climate policy and action. It remained open for endorsement until Noon on 30 June 2017. A total of 389 investors with over USD22 trillion in AUM have now signed the letter sent which has also now been sent to all the heads of state across the G20. The expanding support for this initiative closely reflects the growing momentum as business and the investment community move forward on tackling the commercial realities of climate change.
For more information visit the Investor Platform for Climate Actions latest news pages http://investorsonclimatechange.org/news/
North America: Sara Sciammacco, Ceres, [email protected] +1 617 247 0700 x172
Europe: Hannah Pearce, IIGCC, [email protected] +44 (0) 78 6736 0273
Rojin Kiadeh, CDP, [email protected] +44 (0)203 818 3912.
Joy Frascinella, PRI, [email protected] +44 (0) 20 3714 3143 or +44 (0) 74 1572 5244
Australasia: Emma Herd, IGCC, [email protected] +612 404 861 026
This letter is signed by investors and co-ordinated by the following organisations:
Asia Investor Group on Climate Change (AIGCC) is an initiative to create awareness among Asia’s asset owners and financial institutions about the risks and opportunities associated with climate change and low carbon investing. AIGCC provides capacity for investors to share best practice and to collaborate on investment activity, credit analysis, risk management, engagement and policy. AIGCC represents the Asian investor perspective in the evolving global discussions on climate change and the transition to a greener economy. Seewww.aigcc.net and@AIGCC_Update.
CDP, formerly the Carbon Disclosure Project, is an international non-profit that drives companies and governments to reduce their greenhouse gas emissions, safeguard water resources and protect forests. CDP represents institutional investors with trillions in assets, helping to leverage investor and buyer power to motivate companies to disclose and manage their environmental impacts; whilst also providing insights into corporate environmental performance for investors.Over 5,800 companies with some 60% of global market capitalisation disclosed environmental data through CDP in 2016 alongside 500 cities and 100 states and regions, making CDP’s platform one of the richest sources of information globally on how companies and governments are driving environmental change. Please visit www.cdp.net or follow us @CDP to find out more.
Ceres is a sustainability non-profit organization working with the most influential investors and companies in North America to build leadership and drive solutions throughout the economy. The Ceres Investor Network on Climate Risk and Sustainability comprises more than 130 institutional investors, managing with $17 trillion in assets, advancing leading investment practices, corporate engagement strategies and policy solutions to build an equitable, sustainable global economy and planet. For more information, visit www.ceres.org and follow @CeresNews.
Investor Group on Climate Change (IGCC) is a collaboration of Australian and New Zealand institutional investors and advisors focusing on the impact that climate change has on the financial value of investments. IGCC aims to encourage government policies and investment practices that address the risks and opportunities of climate change. For more information, visit www.igcc.org.au and @IGCC_Update.
Institutional Investors Group on Climate Change (IIGCC) is a collaborative forum for organisations in 11 countries who manage over €19 trillion in assets. Its membership spans everything from belief-based funds to mainstream investors, from pension funds to fund managers and private equity houses. Its mission is to provide investors with a common voice to encourage public policies, investment practices and corporate behaviour which address long-term risks and opportunities associated with climate change. For more information, visit www.iigcc.org & @iigccnews.
The United Nations-supported Principles for Responsible Investment (PRI) is the world’s leading initiative on responsible investment. The six Principles for Responsible Investment are a voluntary and aspirational set of investment principles for incorporating environmental, social and governance issues into investment practices. In implementing the principles, signatories contribute to developing a more sustainable global financial system. The principles have signatories including asset owners, investment managers and service providers from over 50 countries including the G20, For more information, visit www.unpri.org and @PRI_News.
AIGCC, IGCC, IIGCC and INCR collaborate regularly as members of the Global Investor Coalition on Climate Change. All of the groups (along with UNEP FI) co-sponsor the Investor Platform for Climate Action.