Investors are a key influence on policymakers and, therefore, policy engagement by long-term investors is an important extension of these investors’ responsibilities and fiduciary duties to their beneficiaries.
Public policy is a key ingredient in defining the rules by which capital markets operate. It signals and incentivises the flow of capital across the global economy, particularly where the benefits of investment accrue not to one market actor but across the global economy and society. Policymakers need to create policy frameworks that support investment in low-carbon assets, enable investment in adaptation measures, and enact a just transition for affected workers and communities. They also should ensure that investors take full account of the risks and opportunities presented by climate change in their decision-making.
The Investor Agenda Global Investor Statement
Investors have a critical role to play in influencing the policy state of play both at the global and international level and at a regional-specific country level to reach Paris-aligned climate goals.
Every year, The Investor Agenda launches a Global Investor Statement with investor signatories that urges governments around the world to rapidly implement priority policy actions that will enable them to invest the trillions needed to respond to the climate crisis.
The 2021 Global Investor Statement was the Investor Agenda’s most ambitious yet. The Statement was showcased a week before COP26 and some of the key policy asks in the Statement were reflected in policy outcomes from the Summit and wider announcements at the end of 2021, including increased climate risk disclosure mandates, increasingly ambitious NDCs, and the UK’s roadmap towards mandatory net zero transition plans. The 2021 Statement has also influenced wider policy developments including the US Securities and Exchange Commission’s proposed climate disclosure rule launched in March 2022.
However, signatories to the Paris Agreement remain far from meeting its goals. According to research carried out in response to pledges and targets set at COP26, the world is still heading for an estimated global temperature rise of +2.1°C above pre-industrial levels, while current policies see the world heading for +2.7°C. Clearly, public policy is needed to accelerate the transition to a net-zero emissions economy, particularly in the short term.View the asks and signatories from the 2021 Global Investor Statement
Country Policy Groups (CPGs)
In order to meet global targets, The Investor Agenda works with regional investors to drive country-specific policy goals.
October 2021 – six of the founding members of the Investor Agenda issued a common letter to the Australian Treasurer and Reserve Bank of Australia Governor calling for the integration of TCFD-aligned disclosure requirements.
July 2021 – CDP, IGCC and PRI convened a roundtable between senior representatives of Australian Council of Financial Regulators and a group of senior investors to discuss investor expectations the implementation of mandatory TCFD in Australia.
June 2021 – CDP, IGCC and PRI released a plan for Australia to adopt a mandatory financial disclosure for climate change risks over the next four years to help cut red tape for business and protect national economic stability.
European Union CPG
2021 – CDP, IIGCC and PRI convened a roundtable between representatives of the European Commission and a group of about 100 investors to discuss investor expectations on a sustainable economic recovery in the EU following the pandemic. The strong investor turnout at the session indicated the importance of this topic for the investment community, and an open dialogue allowed for a mutually beneficial exchange of views.
December 2020 – CDP, IIGCC and PRI CEOs published an open letter on high climate ambition in the EU’s 2030 target and sustainable recovery package.
March 2022 – AIGCC, CDP and PRI published an open letter to the Prime Minister of Japan calling for decisive decarbonization action around coal reduction and clean energy increase following COP26.
October 2021 – AIGCC, CDP and PRI published an open letter to the Minister of Economy, Trade and Industry of Japan on Japan’s Strategic Energy Plan inviting him to support Japan’s achievement of a carbon neutral goal for 2050.
October 2021 – AIGCC, CDP and PRI published an open letter to the Commissioner of the Financial Services Agency of Japan inviting him to encourage Japan’s adoption of Mandatory Corporate Climate-related Disclosure and lead conversations on the topic at international events and conferences.
March 2021 – the CEOs of AIGCC, CDP and PRI called upon the Government of Japan to adopt robust and ambitious policy measures to increase investor confidence in mobilizing private capital towards the net-zero emissions energy transition.
September 2021 – CDP, Ceres and PRI issued a common statement to US Congress to pass large reconciliation package complete with ambitious climate investments.
July 2021 – CDP, Ceres and PRI issued a common letter to US policymakers calling for a broader and bolder bipartisan federal infrastructure package that will better support the just and inclusive transition to a net zero emissions future.
April 2021 – CDP, Ceres and PRI issued a common letter to US policymakers setting out bold and effective action to address the climate crisis.
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