The move by some – but not all – major funds comes ahead of the next round of global climate talks in Egypt in November. Supporters said this year’s speech is the officials’ most ambitious call yet, with additional calls for action against methane pollution and more funding for poorer nations.
The 2022 Global Investor Statement to Governments on the Climate Crisis, organized by the Investor Agenda Group, an investor-focused group that includes many of the world’s largest fund managers, was the 13th statement to be released.
“Investors are taking action because not only is the law permitted, but in many cases they are required to ensure that they can generate long-term returns as a primary fiduciary duty and take advantage of the opportunities associated with the transition to a net-zero economy.”
Other requests from investors included scaling up low-carbon energy systems; Implementation of carbon pricing mechanisms that increase over time; Develop new or more ambitious plans to end deforestation.
A total of 532 investors signed up for the latest iteration, including UBS Asset Management, Amundi SA and Federated Hermes.
However, none of the three largest US index fund managers, BlackRock, Vanguard and State Street Corp., have signed this letter.
This reluctance comes at a time when the investment in Environmental, Social and Governance, or ESG, in the United States is under increasing pressure.[L1N3011D2]
BlackRock representatives declined to comment, while Vanguard did not respond to questions.
A representative for State Street, whose asset management arm signed the Investor Alliance statement last year, declined to comment.
