Australia’s largest investors have joined 288 institutions representing US$26 trillion to call on governments around the world to address climate change.
The 2018 Global Investor Statement to Governments on Climate Change has been delivered to government leaders ahead of the G7 Summit, which is held in Canada on 8 and 9 June.
The statement, made by 288 institutions with US$26 trillion in assets under management, called on governments to achieve the goals of the Paris Agreement.
The key objective of the Paris Agreement is to keep global average temperature rises to well below 2 degrees above pre-industrial levels and preferably to 1.5 degrees.
Australian signatories to the statement include AustralianSuper, First State Super, VicSuper, BT Financial Group and Colonial First State Global Asset Management.
The statement also called on governments to accelerate private sector investment into the low-carbon transition and to commit to improving climate-related financial reporting.
“Investors are taking action on climate change. The global shift to clean energy is underway, but much more needs to be done by governments to accelerate the low-carbon transition and to improve the resilience of our economy, society and the financial system to climate risks,” the statement said.
“Investors continue to make significant investments into the low-carbon transition across a range of asset classes. Investors are also increasingly incorporating climate change scenarios and climate risk management strategies into their investment processes and engaging with high-emitting companies.
“It is vital for our long-term planning and asset allocation decisions that governments work closely with investors to incorporate Paris-aligned climate scenarios into their policy frameworks and energy transition pathways.”
The statement reflects a previous open letter by the Australian Council of Superannuation Investors in the wake of US President Donald Trump’s decision to withdraw from the Paris Agreement in June 2017.
A similar statement was issued by 225 institutional investors around the world in December 2017 marking the two-year anniversary of the Paris Agreement.