UN Environment Finance Initiative (UNEP FI), together with nine investors representing close to US$ 3 trillion have formed a leadership group to promote action on climate transparency by the investor community. They will work with UNEP FI towards a first set of climate-related investor disclosures in alignment with the recommendations of the Financial Stability Board’s (FSB) Task Force on Climate-Related Financial Disclosures (TCFD).
The investors joining the group are Addenda Capital, Aviva, Caisse de Dépôt et Placement du Québec, Desjardins Group, La Française Group, Nordea Investment Management, Norges Bank Investment Management, Rockefeller Asset Management, and Storebrand Asset Management.
“The message from these investment leaders is clear – climate change is real and it is the single largest threat to our economy,” said UN Environment Head, Erik Solheim. “At the same time, there are endless business opportunities in climate action. Transparency on how investors mitigate the risks and seize the opportunities of a climate-compatible pathway is crucial to move international markets towards actively supporting a low-carbon and climate-resilient future.”
The outputs and conclusions of this group will encourage and ease the adoption of the TCFD’s recommendations by the wider industry. The group will also closely coordinate with, and make its insights and outputs available to, the bigger networks of climate-savvy investors such as the Principles for Responsible Investment and the Institutional Investor Group on Climate Change whose new Investor Practices Programme is structured around the TCFD recommendations. It will also support and inform the global Investor Agenda through which the global investor community will display its ambition and determination to act on climate change.
Michael Bloomberg, Chair of the Task Force and newly appointed UN Special Envoy for Climate Action said, “The more information investors have about the climate risks and opportunities facing companies, the smarter decisions they will be able to make, and the more efficient our markets will become.” He continued, “This investor-led working group is an important step in that direction, and it’s great to see that it’s consistent with our Task Force’s recommendations”.
The initiative follows a pilot project with 16 of UNEP FI’s banking members, launched in 2017 and also convened and facilitated by UNEP FI, that will conclude its work and deliver its outputs in the second quarter of 2018. UNEP FI will also be working with a group of its members who are signatories to the Principles for Sustainable Insurance on a project piloting the recommendations for insurance companies. More information on this ground-breaking project will be available soon.
Read the full press release here.
Find out more about the pilot project for investors here.
Find out more about the pilot project for banks here.