Bonn, Nov 13 – The Institutional Investors Group on Climate Change (IIGCC) confirmed today that it is building a new in-depth 'Investor Practices' programme to help asset owners and managers better assess and manage both climate risk and opportunity and to report on their actions more effectively.
Speaking at COP23 in Bonn, Peter Damgaard Jensen, CEO of Danish Pension fund PKA and Chair of the Institutional Investors Group on Climate Change said: “IIGCC has a strong programme of robust engagement with policymakers* and a respected programme of corporate (shareholder) engagement that focuses on companies’ emissions reduction efforts and strategies around the low carbon transition. To complement this, we are now building a new programme where asset owners and managers can share best practice around assessing, managing and reporting climate risk and investing in the opportunities that support a smooth transition to a low carbon economy.”
The new IIGCC Investor Practices Programme will initially have three key work streams:
- Governance (peer to peer learning for investors on how to secure board level commitment and integrating this through the organisation)
- Strategic tools and metrics for analysing and integrating climate risks and opportunities across all asset classes (focused initially on the use of scenario analysis to ensure more effective disclosure of climate-related risks and opportunities and on green investment ‘impact’ strategies)
- An ongoing dialogue between IIGCC’s growing membership of asset owners and managers about latest developments of climate disclosure in line with TCFD recommendations
Stephanie Pfeifer, CEO of the Institutional Investors Group on Climate Change added:
"IIGCC with our members are here at COP23 to underscore the message that it’s vital all Parties pursue much greater ambition, and to showcase the many other efforts investors are making to better assess climate risk and pursue low carbon investment opportunities."
"In particular, we will explain in two key forums why robust disclosure sufficient to ensure financial markets can price climate related risk correctly is essential to help realise the goals of the Paris Agreement, ensure a smooth transition to a low carbon economy and truly bend the global emissions curve."
Earlier this year, in a letter sponsored by IIGCC and five other investor groups 390 investors (representing more than $22 trillion AUM) wrote to both G7 and G20 governments urging them to uphold their commitment to the Paris Agreement by swiftly implementing their NDCs.
They also called on these governments to develop more ambitious 2050 climate plans, agree to phase out fossil fuel subsidies, consider adopting carbon pricing, and implement policy frameworks sufficient to drive climate-related financial disclosures as recommended by the TCFD. Click here for more information.
The Institutional Investors Group on Climate Change (IIGCC), the investor voice on climate solutions in Europe, is a collaborative forum with 145 mainly mainstream investors across 12 countries with over €21 trillion assets under management (including 9 of the top ten largest European pension funds or asset managers).
It aims to encourage public policies, investment practices and corporate behaviour which address long-term risks and opportunities associated with climate change. Members consider it a fiduciary duty to ensure stranded asset risk or other losses from climate change are minimised and that opportunities presented by the transition to a low carbon economy – such as renewable energy, new technologies and energy efficiency – are maximised. Visit www.iigcc.org and follow @iigccnews .
IIGCC is one of four regional climate investor networks that collaborate regularly as members of the Global Investor Coalition on Climate Change (www.globalinvestorcoalition.org/) and co-sponsors the Investor Platform for Climate Actions (www.investorsonclimatechange.org).
It is also one of five investor groups behind Climate Action 100+ (www.climateaction100.org and Act on Climate) - a new five-year investor initiative to engage the world’s largest corporate greenhouse gas emitters to ensure they do more to curb emissions, strengthen climate-related financial disclosures and improve their governance of climate change issues as they affect their business (to be launched in December).