Institutional investors have been in the vanguard of the response to climate change. Many have liabilities stretching decades into the future and invest across the entire economy, making them sensitive to the long-term, economy-wide threat posed by the physical impacts of climate change and by policies designed to reduce carbon emissions.
Many also recognise the advantages of collaborating to address these common challenges. Since the 2015 Paris Agreement, a number of collaborative investor initiatives have emerged to share expertise, develop frameworks, set targets and amplify investors’ voices as they engage with investee companies and policymakers.
However, this proliferation of initiatives can be a source of confusion to the many investors who are beginning to formulate their response to climate change. This report summarises the key investor initiatives and the tools and frameworks that have been developed to help investors understand climate-related risk and opportunity.