Investors representing $13trn of assets under management have jointly written to the leaders of the G20 nations to urge them to ratify the Paris Climate Agreement this year.
Sweden’s AP4 fund, one of the 130 investors and a key so-called buffer fund in the Swedish pensions system, has noted the call to action as part of its own focus on climate change and corporate governance when making investment decisions affecting some SEK312bn (€33bn) of assets under management.
However, including other investor organisations overall the letter being sent to the G20 leaders represents some $24trn of assets. Six key organsiations are supporting the call: IIGCC – Europe’s Institutional Investors Group on Climate Change; Ceres/INCR – the North American Investor Network on Climate Risk; IGCC – the Australia/New Zealand Investor Group on Climate Change; AIGCC – the Asia Investor Group on Climate Change; CDP and PRI.
The letter includes a number of priorities that the signatories say governments should focus on in order to ensure effective implementation of the agreement that sets out to limit climate change globally. These priorities include:
- Implementing policies that drive better disclosure of climate risk, curb fossil fuel subsidies and put in place strong pricing signals sufficient to catalyze the significant private sector investment in low carbon solutions
- Prioritising rulemaking by national financial regulators to require stronger disclosure of ‘material’ climate risks.
- Financial Stability Board’s Task Force on Climate-related Financial Disclosure (TCFD). We applaud this initiative and
- Encouraging G20 nations to consider the Financial Stability Board’s Task Force on Climate-related Financial Disclosure (TCFD) forthcoming recommendations as key inputs to their national disclosure rules
- Urging the G20 to support a doubling of global investment in clean energy by 2020
- Asking the G20 Green Finance Study Group agenda to be taken forward by the German and other future G20 presidencies
- Urging the G20 to both prioritise implementation of their nationally determined contributions and to prepare to strengthen them with the goal of ensuring all G20 nations meet their commitments and raise their climate ambition during 2018 to achieve the Paris Agreement’s goals