UK investors urge G7 to force firms to reveal their climate change exposure
Investment Association also called on most developed economies to help firms meet Paris Agreement climate goals
The world’s glaciers are melting, distorting weather patterns around the globe. Photograph: Aumphotography, Getty Images
An influential group of UK investors are urging G7 leaders to follow the UK’s lead by forcing firms to come clean about their exposure to climate risks.
In a letter to ambassadors and high commissioners sent ahead of the G7 summit in Cornwall, the Investment Association (IA) also called on the world’s largest developed economies to issue sector-by-sector guidance to help firms plan to meet Paris Agreement climate goals, which aim to limit global heating to 1.5 degrees celsius.
G7 members – which include Canada, France, Germany, Italy, Japan, the UK and the US – should coordinate and standardise climate reporting standards, the IA added. The group represents asset managers including Legal & General, Schroders and Aviva, which together have a combined £8.5tn under management.
The climate recommendations are part of the UK trade body’s efforts to help its members decarbonise their investment portfolios, a task which has been complicated by a lack of information on climate risks linked to the companies they invest in. [continue]