Daily Management Review

Global investors call on G7 countries to become greener


The world's largest investment companies have written to their leaders to accelerate reductions in greenhouse gas emissions. Higher commitments would also make national economies more attractive for investment, they said.

Nearly half a hundred investors, who together control $41 trillion in assets, have called on world leaders to set more ambitious targets to cut greenhouse gas emissions and end support for fossil fuel producers. They sent a letter to heads of state ahead of the G7 leaders' summit. Global warming is stated to be the main theme of the upcoming summit.

In the document, the investors suggest governments commit to zero emissions by mid-century and adjust plans for reductions by 2030 so that the planet's temperature does not rise by more than a degree and a half. Countries that adopt cleaner fuels faster than others also prove more attractive to investors, they say.

Other suggestions from investors include incorporating emission reduction measures into national economic recovery plans and introducing a commitment to publish financial reporting on government actions in this area.

As Stephanie Pfeifer, CEO of the Institutional Investors Group on Climate Change, notes, "The world's leading investors expect governments to demonstrate their commitment to fighting the climate crisis." "Those who lose out will increasingly be left behind as the race for a cleaner future gathers momentum," she said.

source: reuters.com