Managers Of $40 Trillion Make Plans To Decarbonize The World

The Institutional Investors Group on Climate Change (IIGCC) is a European group of global pension funds and investment managers, totaling over 1,200 members in 16 countries, who control more than $40 trillion in assets (€33 trillion). They have drawn up a plan to cut carbon in their portfolios to net-zero and hope other investors will join them.

Read also One of Sweden’s Biggest Investors Starts ESG Pressure Campaign

The group’s mission is to mobilize capital for a global low-carbon transition and to ensure resiliency of investments and markets in the face of the changes, including the changing climate itself. They provide asset managers with a set of recommended actions, policies, collaborations, measures and methods to help them meet the net-zero goal by 2050 in an effort to address climate change. Their framework was developed with more than 70 funds worldwide.

Read also Using behavioral insights to make the most of emergency social protection cash transfers

The European Union aims to be climate-neutral by 2050 – an economy with net-zero greenhouse gas emissions. This objective is at the heart of the European Green Deal and in line with the EU’s commitment to global climate action under the Paris Agreement.

Following the Paris Climate Agreement, asset managers have been under increasing pressure to reduce their carbon footprint as their investors focus on sustainability and on the negative effects of climate change.

But a lack of consensus on the best path forward has slowed any real action to a crawl. “Countries, cities and companies around the globe are committing to achieve the goal of net-zero emissions and investors need to show similar leadership,” Stephanie Pfeifer, IIGCC’s chief executive officer, said in a statement.

Read more @Forbes