Investors – individually and collectively – are a key influence on corporate practices and performance on climate change. Investors have an essential role to play in insisting that companies take action to limit the risks and maximize the opportunities of climate change by aligning their business strategies and capital allocations with the goal of keeping the increase in global average temperature to well below 2°Celsius above pre-industrial levels. This engagement with companies is consistent with investors’ fiduciary duties.
Sign on to the Climate Action 100+ initiative
We have committed to supporting the Climate Action 100+ initiative with the aim of securing commitments from boards and senior management to:
- Implement a strong governance framework which clearly articulates the board’s accountability for and oversight of climate change risk and opportunities.
- Take action to reduce greenhouse gas emissions across their value chain, consistent with the Paris Agreement’s goal of limiting global average temperature increase to well below 2-degrees Celsius above pre-industrial levels.
- Provide enhanced corporate disclosure in line with the final recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and sector-specific Global Investor Coalition on Climate Change Investor Expectations on Climate Change (when applicable) to enable investors to assess the robustness of companies’ business plans against a range of climate scenarios, including well below 2-degrees Celsius scenarios, and to improve investment decision-making.
Support CDP’s disclosure and action requests
We have committed to supporting CDP’s annual disclosure request to over 5,000 companies. We have also committed to supporting CDP’s Investor Action request to over 1,000 high impact companies which asks these companies to:
- Use climate-related scenario analysis to inform their business strategy
- Make emissions reductions, including via projects with positive returns
- Consider committing to relevant parts of the We Mean Business coalition’s ‘Take Action’ campaign (including adopting science-based emissions reduction targets and implementing the recommendations of the TCFD).