December 13 (Renewables Now) - An initiative grouping 225 global institutional investors was launched on Tuesday with an aim to drive action on climate change by the biggest corporate greenhouse gas emitters.
The Climate Action 100+ initiative was announced during the One Planet summit in Paris.
The investors, which together have more than USD 26.3 trillion (EUR 22.4trn) in assets under management, will initially focus on 100 of the world's largest corporate greenhouse gas emitters, including those in the oil and gas, power and transportation sectors.
"Our collaborative engagements with the largest emitters will spur actions across all sectors as companies work to avoid being vulnerable to climate risk and left behind," said Anne Simpson, investment director of sustainability at California Public Employees' Retirement System (CalPERS), the largest US public pension fund.
The investors will work with the companies to improve governance on climate change, reduce emissions and enhance climate-related financial disclosures.
"Climate change is a material and systemic risk no long-term investor can afford to ignore," said Stephanie Maier, director of responsible investment at HSBC Global Asset Management. "To support the full implementation of the Paris Agreement it is also vital that investors and universal owners across the mainstream investment community do more to ensure major corporate emitters move swiftly to address the risks and pursue the opportunities presented by climate change, providing greater disclosure on how they are aligning with the 2-degrees transition," Maier added.
(USD 1 = EUR 0.852)