A group of French asset owners and managers representing €3.6 trillion ($4.3 trillion) in assets launched an initiative to promote a socially acceptable transition to low-carbon economies.
Coalition members of Investors for a Just Transition — part of Paris-based organization Finance for Tomorrow, which promotes Paris as a leader on green finance — have committed to engaging with companies on integrating the social aspects of the climate transition into their strategies, as well as highlighting best practice within key industries.
The transition to a low-carbon economy must consider social issues, whether they affect workers, local communities, consumers or civil society, a news release said.
Investors will work with companies, labor unions, universities and research institutes on the initiative, with the aim of defining a common strategy and specific engagement objectives.
Founding members include the €38 billion Etablissement de Retraite Additionnelle de la Fonction Publique, Paris, while money manager founders include Amundi, AXA Investment Managers and SCOR Investment Partners.
"The decision to create the first investor coalition for a just transition stems from several observations," Jean-Jacques Barberis, vice president of Finance for Tomorrow, said in the release. "First of all, the just transition is a necessary condition for implementing the Paris Agreement. Our climate objectives can and will only be reached if we ensure that every one of society's stakeholders is included in the process. Then, the financial sector has a role to play here by fully integrating the social dimension in their financing policies."
The coalition wants all investors and companies to join its initiative ahead of the United Nations meeting on climate change, known as COP26, which takes place in Glasgow in November.