Representatives from some of the world’s largest pension funds, endowment funds and money managers signed a letter to the finance ministers of G-7 countries urging them to support a move to a low-carbon investment environment.
Organized by the United Nations Principles for Responsible Investment, Investor Network on Climate Risk, Investor Group on Climate Change and Asia Investor Group on Climate Change, the letter has been signed by more than 120 institutional investors from across the globe.
They are calling on the finance ministers or treasury officials of Canada, France, Germany, Italy, Japan, the U.K. and the U.S. to support an “ambitious agreement” for a long-term emissions-reduction goal.
That goal aims to limit the average global temperature increase to two degrees Celsius by 2040.
The signatories also want officials to support “the submission of short to medium-term national emissions pledges and country level action plans.”
The letter, obtained by Pensions & Investments, said: “We believe climate change is one of the biggest systemic risks we face. With the right market signals from policymakers, investment in low carbon and climate reliant opportunities can follow, and climate impacts and resulting economic dangers can be mitigated.”
The letter also said additional investment is required to reach these goals, and called for “well-designed policies that shift incentives and ensure the deployment of available technologies, while achieving a just transition for workers and communities.”
If action is delayed, more stringent policies will be required in the future, the letter said.
“With the appropriate policies in place, we will be able to accelerate our investments in low carbon assets and advance the shift to a low carbon economy,” the letter said.
Signatories included Swedish pension funds AP1, AP2, AP3, AP4 and AP7; U.K. pension funds BT Pension Scheme and Universities Superannuation Scheme; the California Public Employees’ Retirement System and California State Teachers’ Retirement System in the U.S.; and AustralianSuper.
