Quebec City – Institutional investors with more than $26 trillion in assets are urging world governments to scale up climate action to achieve the goals of the Paris Agreement. CDP helped develop the statement.
“The global shift to clean energy is underway, but much more needs to be done by governments to accelerate the low carbon transition and to improve the resilience of our economy, society and the financial system to climate risks,” the group of 288 investors wrote in a joint statement announced on Monday.
The statement was delivered to the United Nations Framework Convention on Climate Change (UNFCCC) and G7 government leaders before the G7 summit in Canada on June 8-9. Prominent signatories include Allianz Global Investors and HSBC Global Asset Management.
“We are concerned that the implementation of the Paris Agreement is currently falling short of the agreed goal of ‘holding the increase in the global average temperature to well below 2-degrees Celsius above pre-industrial levels’,” they added.
In the statement, investors set out the strategies they have taken in recent years to drive the low-carbon transition and minimize climate risk. They are now asking world leaders to do their part.
Patricia Espinosa, UNFCCC executive secretary, encouraged investors around the world to sign on to the statement.
“It’s extremely encouraging to see so many institutional investors coming together around such a powerful message to governments and the international community,” said Ms. Espinosa. “Leveraging private finance to fund the transition to a low-emissions and low-carbon future in order to meet the goals of the Paris Agreement is a necessity – one that public administrations cannot afford to do on their own.”
The statement was developed by 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.
“The business case for investors to act on environmental risk could not be clearer, and we are increasingly seeing climate change firmly on the agenda of the investment community,” said Paul Simpson, CEO of CDP.
“This investor statement is a direct call to action to government leaders to accelerate their implementation of the Paris Agreement. Political will to improve climate-related financial reporting is an important step towards keeping the promises made in Paris.”
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