A group of over 500 institutional investors has called on world governments to step up their efforts in tackling climate change.
The coalition – with $35 trillion (€31.6 trillion) in assets under management (AUM) – has urged world leaders to phase out coal power, put a “meaningful price” on carbon pollution, end subsidies for fossil fuels, as well as update and strengthen commitments to meet targets set by the Paris Agreement.
Ahead of the United Nations Climate Action Summit taking place on September 23, the Institutional Investors Group on Climate Change (IGCC) said that more needs to be done to accelerate the low carbon transition and improve the resilience of the economy, society, and financial system to climate risks.
According to the group, current government commitments leave an “ambition gap” that will not prevent the global average temperature from rising above the 1.5 degree threshold, highlighting how scientists have warned this could cause catastrophic and irreversible effects of climate change.
IGCC, made up of more than 170 members, is the European membership body for investor collaboration on climate change. The majority of members, hailing from 13 different countries, are pension funds and asset managers.
Chief executive Stephanie Pfeifer said climate change poses an unprecedented threat to the global economy.
“A considerable number of countries have already committed to delivering net zero emission economies by 2050. Investors are asking that others now follow their lead,” she said.
Another group of investors representing $15 trillion in AUM recently stepped up pressure on the energy sector following a report highlighting divergence between firms and the climate targets set out by the Paris Agreement.
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