Thirteen top executives from energy producers agreed to provide the world's largest investors with meaningful and financially material information about the steps they are taking toward energy transition at a gathering in Vatican City.
The forum, "The Energy Transition and Care for Our Common Home," hosted June 13-14 by the Vatican's Dicastery and the University of Notre Dame for the second time, saw investee companies pledge to clarify how they are planning for energy transition that would help to keep global temperature increases below 2 degrees Celsius.
Following an agreement, board directors will undertake assessment climate-related issues as part of their risk oversight function in line with Task Force on Climate-Related Financial Disclosures, including financial, policy and legal risks associated with the transition.
Firms will also evaluate opportunities such as resource efficiencies, new energy sources, new products and services, they agreed.
Investors and companies also agreed that reliable and economically meaningful carbon pricing should be set by governments at a level that encourages business practices, consumer behavior, research and investment to significantly advance the energy transition while minimizing the costs to vulnerable communities and supporting economic growth.
Largest investors who signed the agreement included:
- Mortimer J. Buckley, CEO of Vanguard Group.
- Greg Case, CEO of Aon.
- Martin L. Flanagan, president and CEO of Invesco.
- Fredric Janbon, CEO of BNP Paribas Asset Management.
- Harry Keiley, chair, investment committee of California State Teachers Retirement System.
- John Kingman, group chairman of Legal and General Group.
- José Meijer, vice chair og Stichting Pensioenfonds ABP.
- Hiro Mizuno, executive managing director, Government Pension Investment Fund.
- Barbara Novick, co-founder, vice chairman of BlackRock.
- Saker Anwar Nusseibeh, CEO of Hermes Investment Management.
- Ronald P. O'Hanley, CEO, State Street Corp.
- Betty T. Yee, controller, state of California.