Climate change action demand by investors wielding US$32 trillion in assets
(12 June 2019 - Europe) A global group of 415 investors managing US$32 trillion in assets released a combined statement urging governments to accelerate their actions to mitigate climate change.
The 2018 Global Investor Statement to Governments on Climate Change including entities such as Allianz, Australian Super, BBVA and UBS reiterated their support of the ongoing Paris Agreement discussions taking place during COP24 in Katowice, Poland.
The consortium warns that ignoring action against climate change could cause permanent economic damage up to four times the size of the 2008 global financial crisis. To mitigate these economic damages, the group of investors calls on global leaders to commit to three priorities:
- Achieve the Paris Agreement’s goals
- Accelerate private sector investment into the low carbon transition
- Commit to improve climate-related financial reporting
In order to limit global warming below 2°C compared to preindustrial levels, global economies must significantly and quickly curtail their emissions. Schroders, a member of the global investor's group, warns that a temperature rise of 4°C could cause US$23 trillion in global economic losses over the remainder of the century.
While countries, private corporates, investors, and NGOs all call for serious and urgent reduction in greenhouse gas emissions, three nations have recently stalled the Paris Agreement talks. The United States, Saudi Arabia and Russia oppose the Paris Agreement and deny humans are responsible for climate change. These three countries represent the top three oil and gas producing countries in the world, accounting for over 40 percent of global hydrocarbon production. While many countries fully adopt the measures outlined in the Paris Agreement, countries reliant on oil and gas production remain concerned over its impact on their long-term economies.
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