Financial industry heavyweights have called on governments and businesses worldwide to step up climate change efforts.
A group of 415 investors who collectively manage assets worth US$32 trillion have called on governments to take stronger actions to meet goals as set out in the Paris climate agreement.
The statement from the Institutional Investors Group on Climate Change was first launched in June ahead of the G7 summit in Canada but has been reissued to coincide with the current negotiations happening in Poland.
Backers of the statement include pension funds, asset managers, insurance companies and more, all calling on governments to do more to limit global warming and sets out the measure’s investors need to see to help them further shift their portfolios.
“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 group said in a statement.
The group has said actions like phasing out thermal coal power and fossil fuel subsidies were needed and leading on climate change would produce new jobs and investment opportunities.
“The countries and companies that lead in implementing the Paris Agreement and enacting strong climate and low carbon energy policies will see significant economic benefits,” it said.
This is supported by a recent study by Macquarie University which found that zero carbon would lead to significant wealth creation.
The call to action comes at a significant time in Australia which recently was ranked 55 out of a list of 60 countries for its greenhouse gas emissions and climate change policy.
The Climate Change Performance Index assess 60 countries that contribute 90 per cent of global carbon emissions and ranks them based on climate policy, greenhouse emissions, renewable energy use and energy use.
Australia’s ranking at 55 places the country just above Taiwan, Korea, Iran, the United States and Saudi Arabia.
Australia is currently over in Poland where climate change talks are underway as countries try to work out how to meet the Paris Climate Agreement commitments.
Environment minister Melissa Price has maintained Australia will meet its commitments despite Australia currently having no climate change policy.