- The 2022 Global Investor Statement to Governments on the Climate Crisis launches today with 533 investor signatories representing US $39 trillion in assets. The statement is open for investors to join the unified call for government action until COP27.
- The statement urges governments to implement policies consistent with a just transition limiting global temperature rise to 1.5°C via policies such as: medium and long-term climate strategies, transitioning energy away from fossil fuels, ending deforestation, bolstering climate finance, and strengthening disclosures.
Today, investor groups from around the world publicly released a statement signed by 533 institutional investors with US $39 trillion in assets under management, 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 of 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 rapidly implement five priority policy actions, 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 (NDCs) 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.
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 533 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.
Rebecca Mikula-Wright, CEO of AIGCC and member of the Investor Agenda Steering Committee, 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.”
Supporting quotes from the investor signatories:
Cathay Financial Holdings Chief Investment Officer, Sophia Cheng, said: “The impacts of climate change have been more frequent and severe; the governments’ unified actions strengthening national policies align with the goal of limiting global temperature rise to 1.5°C are critical to addressing climate issues. Numerous global investors have committed to net zero portfolios by 2050, and we believe the governments’ ambitious climate policies will help to urge more corporates accelerating their climate-resilient and net zero transition plans.”
Nikko Asset Management President, Stefanie Drews, said: “With the recent floods and droughts as well as food and energy shortages, the alarm bells of climate urgency have only gotten louder with countless communities affected. We recognise that the private and public sector must come together to drive ambitious transition efforts. Nikko AM strongly supports the 2022 Global Investor Statement (GIS), for policy support to direct capital to green solutions that accelerate climate initiatives.”
Nissay Asset Management President and Chief Executive Officer, Hiroshi Ozeki, said: “Today, more regions in the world face floods, droughts and food crises due to climate change. In the meantime, we all recognize that there are numerous headwinds to promoting net zero as geopolitical risks are driving up resource prices. Policy support and continuous cooperation from the public sector are essential to overcome this challenge, while the private sector must do their utmost efforts from a long-term perspective. With these in mind, we strongly encourage this 2022 Global Investor Statement.”
Resona Asset Management Executive Officer, Minoru Matsubara, said: “Resona Asset Management supports the 2022 Global Investor Statement (GIS). We are engaging collaboratively with other investors to advocate for swift government action on the key areas of climate policy to encourage investment in climate resilience. We further support that the 2022 GIS focusses on implementing policies that align with a 1.5°C future, while allowing for just transition elements to be taken into account.”