“Co-operation with other investors through common statements is an excellent way of putting climate issues on the agenda outside the financial market,” says Varma’s Director of Responsible Investment, Hanna Kaskela.
The statement has been endorsed by 457 major international investors managing over USD 41 trillion in assets. The statement has been coordinated by The Investor Agenda, which aims to accelerate the transition to a net-zero emissions economy. The collaboration is made up of several organisations promoting responsible investment, such as the UN-supported Principles for Responsible Investment (PRI).
The statement calls on world governments to strengthen their Nationally Determined Contributions before the United Nations Climate Change Conference in November in order to limit the global average temperature rise to no more than 1.5-degrees Celsius and to ensure that a net-zero emissions economy is reached by 2050 or sooner. In the statement, governments are called on to establish clear interim targets for carbon-intensive sectors and remove subsidies from high polluting industries. World governments’ COVID-19 economic recovery packages are expected to target sustainable initiatives.
“In addition to engagement initiatives, we as investors are able to allocate assets to promote sustainable action, help create jobs and boost economic growth, and remove investments from carbon-intensive activities. In the statement, we also encourage governments to work closely with investors in order to ensure sustainable investments,” Kaskela adds.