- Investor group want governments to take more climate action.
- The group includes 3rd largest asset manager globally.
- The call follows recent letters to halt financing for fossil fuels.
A group of 147 investors managing $41 trillion in assets have signed an open letter calling on global leaders to enact more ambitious climate policies. The letter released ahead of the G7 summit advised governments to focus on six specific actions, including a commitment to achieving net-zero emissions by 2050, strengthen their NDCs for 2030 before COP26, ensure COVID-19 economic recovery plans support the transition to net-zero emissions and enhance resilience. Tand implementing mandatory climate risk disclosure. While the world’s top two asset managers, BlackRock and Vanguard, did not sign the letter, the third largest State Street Global Advisors did sign.
“Strong policies, in line with limiting global warming to no more than 1.5-degrees Celsius, can accelerate and scale-up private capital flows towards the net-zero transition. Full implementation of the Paris Agreement will create significant investment opportunities in clean technologies, green infrastructure and other assets, products and services needed in this new economy. In turn, investors can use capital allocation and stewardship to support sustainable activities that generate jobs and economic growth, transition away from carbon-intensive activities and increase resilience.,” the letter adds.
Several organisation and institutions have signed open letters calling on G7 leaders to stop financing fossil fuels, prioritise a clean recovery from COVID-19, and implement more climate action policies.