While the window to secure the future of societies and economies around the world is closing, “the impetus to move forward to a truly global solution has never been greater,” said David Atkin, CEO of the United Nations Principles for Responsible Investment.
Having observed investors take steps to mobilize capital in support of climate action — albeit slowly, and with political pushback — “I’m pleased to say that within our industry, that much, much needed action has already started,” he said in a keynote at Sustainable Investment Forum North America.
The annual conference, held on Sept. 24, coincided with the 79th session of the U.N. General Assembly.
Pointing to places where “we are making headway,” he noted that there is a shared understanding of collaboration among investors to strengthen their responsible investment practices. He highlighted the establishment of large-scale global initiatives including the Glasgow Financial Alliance for Net Zero, a coalition dedicated to advancing decarbonization in the economy, as well as the Net-Zero Asset Owner Alliance, a U.N.-backed net-zero, emissions-focused initiative that marks its fifth anniversary this year.
“You can believe you’re a responsible investor, but you know you can’t solve these externalities on your own. You need to collaborate — and crucially, this is all aligned with fiduciary duty to deliver value now and in the longer term despite political headwinds,” he added.
Another climate finance-focused initiative, Climate Action 100+ has seen departures over the past year, including asset managers such as AllianceBernstein, Goldman Sachs Asset Management, Invesco and J.P. Morgan Asset Management.
But while “you wouldn’t believe it if you read the press,” Atkin said strong demand for the initiative remains in its existing member base of more than 600 investors. Over 80 new signatories have joined CA100+ over the past year, “significantly outweighing the number of departures,” he noted.
Members of the initiative’s global steering committee include Peter Cashion, managing investment director for sustainable investments at the California Public Employees’ Retirement System, Sacramento. The $530.6 billion public pension fund was one of U.N. PRI’s initial signatories when it was established in 2006.
In an earlier panel at the forum, Cashion said the sustainable investments team at the pension fund has grown from 10 people to 20. He added that the allocator announced $5 billion in investments to a climate transition index.
“We’re reassured to see that the majority of investors continue to support and back this important work, valuing its role in helping them to manage real financial risks to their portfolios,” Atkin added.
While this is a positive for the work of climate-related finance initiatives, he noted that the “our work — your work — is not done. We must ensure that the pace of this progress picks up, and then commitments translate into action.”
Despite the slow progress and political pushback, Atkin said that “history will show that those who stayed the course did the right thing for their businesses, the wider sector and the planet.”
