A group of 35 public and union pension funds and money management firms called for a mandatory national policy to reduce greenhouse gas emissions, according to a letter sent to House and Senate leaders and the Obama administration.
A mandatory policy would allow us to invest our clients assets with appropriate cognizance of the continuing risks and exciting opportunities that will result from physical, regulatory and technological change spurred by a changing climate and the policy response, Alex Popplewell, global co-head of responsible investment at BlackRock, in a statement about the letter. BlackRock is one of the 16 investment management firms that signed the four-page letter.
The letter was also signed by the $171.3 billion California Public Employees Retirement System, the $119 billion California State Teachers Retirement System, the $38.9 billion New York City Employees Retirement System and the $8.6 billion Illinois State Board of Investment.
Denise L. Nappier, Connecticut state treasurer; Thomas P. DiNapoli, New York state comptroller; and Janet Cowell, North Carolina state treasurer, also signed the letter, as did representatives of Deutsche Asset Management, Calvert Asset Management, F&C Asset Management and Walden Asset Management.
The letter urged legislation to create a framework in which private investment can drive energy efficiency, renewable energy, and reduce greenhouse gas emissions. Today, our investments face an uncertain policy environment, making it difficult to invest in the clean energy approaches we need. As long-term investors, we need stable national policy to help guide the companies in which we invest so that they can be profitable over the next several decades in a low-carbon, clean-energy economy.
National climate legislation operating in harmony with the market will facilitate greater investment in clean technologies and other climate change solutions and will enable the U.S. not only to compete globally, but to lead, the letter stated.
The appeal was coordinated by Ceres, a coalition of investors and public interest organizations working with companies on environmental issues, and the Investor Network on Climate Risk, a group of 77 institutional investors and financial companies.