Investor groups publicly released a statement signed by 532 institutional investors with US$39 trillion in assets under management (AUM), advocating for governments to enact ambitious policies that would leverage the private capital required to effectively address the climate crisis.
The 2022 Global Investor Statement to Governments on the Climate Crisis
is the most ambitious statement to date in terms of the policy
recommendations contained within it, calling on governments to raise
their climate ambition in line with the goal of limiting global
temperature rise to 1.5°C. The most ambitious actions called for include
mandated climate transition plans from investors. In
calling for this action, investors are directly asking for more climate
disclosure regulation in the finance sector, in addition to calling for
climate regulation of companies.
The statement also covers new policy areas
not addressed in previous statements, including a focus on tackling
methane pollution, climate adaptation and resilience, and scaling up
climate finance for developing countries. Investor signatories to the
statement are specifically urging governments to implement five priority
policy actions rapidly, that will allow them to invest the trillions
needed to respond to the climate crisis.
The full list of policy recommendations can be found in the statement, but a summary is as follows. Investors urge governments to:
- Ensure that the 2030 targets in their
Nationally Determined Contributions align with the goal of limiting
global temperature rise to 1.5°C.
- Implement domestic policies across the
real economy and take early action to ensure that their 2030 greenhouse
gas emissions are aligned with the goal of keeping global temperature
rise to 1.5°C.
- Contribute to the reduction in non-carbon
dioxide greenhouse gas emissions and support the effective
implementation of the Global Methane Pledge to reduce emissions by at
least 30 percent from 2020 levels by 2030.
- Scale up the provision of climate finance
from the public and the private sector for mitigation, and for
adaptation and resilience, with a particular focus on the needs of
developing countries.
- Strengthen climate disclosures across the financial system.
UNEP FI Head and member of the Investor Agenda Steering Committee Eric Usher said:
“From its perspective of bringing together the world’s
asset owners, banks and insurers to achieve net-zero emissions by 2050,
UNEP FI wholeheartedly supports the Global Investor Statement to
Governments on the Climate Crisis, calling for more robust policies that
enable private capital mobilization toward climate mitigation,
adaptation and resilience. The just transition cannot be achieved
without the collaboration of all stakeholders; only by working together
can governments, investors, businesses and society respond to the
climate crisis effectively.”
Coordinated by the Founding Partners of the Investor Agenda – 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 statement has already garnered 532 signatures from investors with
US$39 trillion in assets under management and remains open for
signature until the United Nations Climate Conference (COP27) in
November.
“Investors
are urgently seeking to manage their exposure to climate risks and
increase the contribution that their investments make to the Paris
Agreement goals. Investors are taking action as it is not only permitted
by law but is in many cases required to ensure their ability to
generate returns in the long-term as a core fiduciary duty and benefit
from the opportunities associated with the shift to a net-zero emissions
economy. We encourage governments to engage closely with investors to
make sure these risks are effectively managed and that these
opportunities are fully realized,” the investor statement reads.
Asia Investor Group on Climate Change
(AIGCC) and Investor Group on Climate Change (IGCC) CEO and Investor
Agenda Steering Committee member, Rebecca Mikula-Wright, said: “This
is a powerful call from investors for governments to strengthen,
broaden and accelerate their climate policies. To keep 1.5°C in reach,
protecting their citizens and economies, governments must adopt credible
targets now, starting by setting deadlines for phasing out fossil
fuels, supporting clean energy, and incentivizing decarbonization across
economies. We are making this call now, knowing that a rapid, orderly
and just transition is essential for the prosperity and economic
stability that investors, citizens and governments all want to see.”
CDP Head of Capital Markets, North America and Investor Agenda Steering Committee member, Pratima Divgi, said: “Time
is fast running out to limit global warming to 1.5°C and ensure a
net-zero, nature positive economy by 2050. The 2022 Global Investor
Statement highlights the importance of robust climate policy frameworks
in creating a level playing field and allowing financial institutions to
allocate capital towards the transition to a sustainable and resilient
economy. We are encouraged by the strength of this collective statement
from investors and hope that governments around the world respond to
their call.”
Ceres CEO and President and Investor Agenda Steering Committee member, Mindy Lubber, said: “Investors
need strong, effective climate policies to confidently direct capital
flows to where they’re needed for the transition to a just, net-zero
emissions economy by 2050 or sooner. Investors from all over the world
are asking governments to step up to the urgency of the moment and enact
policies the world needs to avert the worst of the climate crisis and
that investors need to usher in a new era of economic prosperity built
around a just, sustainable, clean energy economy. We hope governments
listen and join investors in building this prosperous, just and livable
future.”
Institutional Investors Group on
Climate Change (IIGCC) CEO and Investor Agenda Steering Committee
member, Stephanie Pfeifer, said: “It
will require collaboration and commitments from many stakeholders, but
Governments and policy makers around the world have the most important
role to play in decarbonizing the
global economy. Critically, by setting ambitious net zero targets that
are backed up by supportive and clear domestic policies across the real
economy, Governments can act as a powerful catalyst to facilitate the
investment and shift in capital allocation necessary to make net zero a
reality. The Global Investor Statement to Governments on the Climate
Crisis is a major and urgent call to action from investors to
Governments asking them to step up.”
Principles for Responsible Investment (PRI) CEO, David Atkin, said: “Once
again, investors are issuing a clear call to governments on the urgent
need for public policy to reflect and support investor action. We
know that more ambitious action on climate is needed, a fact compounded
by increasing geopolitical tension and the devastation caused by
intensifying extreme weather events.
Never has the need for a bold, effective and coordinated policy response
on climate been more pressing, and we urge governments – on behalf of
investors – to heed these calls and take action.”
Statement
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