Nearly 400 global investors with over $22 trillion in assets urge G20 to stand by Paris Agreement

Nearly 400 global investors (managing more than $22 trillion in assets) urge G20 to stand by Paris Agreement and drive its swift implementation.

UPDATE: London/NY/Sydney 00.01 GMT Monday 03 July 2017 

(revised from material previously issued on 8 & 22 May 2017)

Long-term institutional investors (389 representing more than USD 22 trillion in assets) have written to G20 leaders urging governments to stand by their commitments to the Paris Agreement at their upcoming Summit in Hamburg on 7- 8 July 2017.

Underscoring the urgency of action by G20 nations to implement the global climate pact and echoing a message previously delivered to the G7, investors call on G20 leaders to:
 - Reiterate their support for and commitment to implement the Paris Agreement, including the delivery of their own Nationally Determined Contributions in full.
 -  Bring forward focused and targeted long-term climate and energy plans that will ensure their future actions align with commitments under the pact to keep global average temperature rise to well below 2°C above pre-industrial levels and preferably to 1.5°C.
 -  Drive investment into the low carbon transition through aligning climate-related policies, phasing out fossil fuel subsidies and introducing carbon pricing where appropriate.
 - Implement climate-related financial reporting frameworks, including supporting the Financial Stability Board Task Force on Climate-related Financial Disclosures’

“Investors are sending a powerful signal today that climate change action must be an urgent priority in the G20 countries, especially the United States,” said Mindy Lubber, CEO and president of the sustainability nonprofit organisation Ceres, which directs the Ceres Investor Network on Climate Risk and Sustainability. “Global investors are eager to open their wallets to a low-carbon future, but it won’t happen without clear, stable policy signals from countries worldwide - in particular the U.S., whose withdrawal from the Paris Climate Agreement is hugely troubling.”

Stephanie Pfeifer, CEO of the Institutional Investors Group on Climate Change (IIGCC) in Europe added, “Investors recognise the global transition to a low-carbon, clean energy economy is now firmly underway. They also want to make well-informed decisions that will help ensure Paris Agreement signatories can deliver swiftly on their national commitments. It is vital that every signatory across the G20 adopts policies that drive better disclosure of climate risk, curb fossil fuel subsidies and put in place strong pricing signals sufficient to catalyse the significant private sector investment in low carbon solutions.”

Emma Herd, CEO of the Investor Group on Climate Change (IGCC) in Australia said: “Maintaining policy commitments which drive strong growth in low carbon investment is key to tackling climate change. While the private sector can provide the investment required to build a secure, affordable and low emissions global energy system, we urge the G20 to set strong policy signals which provide the investment certainty needed to drive trillions of dollars into new clean energy investment opportunities.”

Paul Simpson, CEO of CDP added: “The G20 must move swiftly to put in place the frameworks required to improve the availability, reliability and comparability of climate-related information, and to ensure carbon pricing signals which will drive the incorporation of climate risks and opportunities into financial assessments. That is why investors are calling on G20 leaders to prioritise rulemaking by national financial regulators to require disclosure of ‘material’ climate risks in line with the recent recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosure (TCFD).”

“Signatories to the PRI have identified climate change as the number one material risk to their investments," said PRI managing director Fiona Reynolds. "The US decision to withdraw from the Paris accord, while disappointing, has actually galvanised many investors and governments into taking greater action on climate policies, as we saw with the recent success of climate resolutions at Exxon and Occidental as well as through investor outreach to G20 countries. These moves demonstrate how investors have become increasingly vocal about climate change. We also need to remember that governments will come and go but environmental issues are here to stay.”

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