The world’s biggest investors are responding to the global commitment to tackle climate change and are rapidly scaling up action to protect their portfolios, reveals this annual benchmark report on the industry from the Asset Owners Disclosure Project
The fifth AODP Global Climate 500 Index launches after a year of rapid developments in articulating the financial risks of climate change to the global economy. Climate risk rose further up the investor agenda in 2016. The Paris Climate Agreement came into force in November, including a recognition that financial flows must be aligned with the commitment to keep climate change well below 2C. Regulatory change is on the agenda, with France implementing a worldfirst mandatory climate risk disclosure requirement for institutional investors and the Task Force on Climate-related Financial Disclosures delivering its recommendations to the Financial Stability Board, for consideration by the G20 in July this year. The scales have tipped – a 60% majority of Asset Owners, and half of Asset Managers are now taking action to manage the risks and opportunities posed by climate change.