INVESTING SAMPLING AND CLIMATE CHANGE

INVESTING SAMPLING AND CLIMATE CHANGE

Juan Diego Berjón Juan Diego Berjón (68 Posts)

Engineer specialized in Environmental Management, Business Management, BigData Analysis and GIS Technologies


There are advocates and opponents of climate change, but it is becoming more powerful the idea that humans do influence on it. There are more and more aware of our actions.

If we analyze the GLOBAL INVESTOR SURVEY ON CLIMATE CHANGE. ANNUAL REPORT ON ACTIONS AND PROGRESS 2011 we can observe some meaningful information. In this survey 42 owners and 51 asset managers participated. Total of 93 investors own assets valued at more than US $ 12 billion.

The findings of the report shows that legislation or a coherent regulation on climate change is critically important to encourage reallocation of large-scale institutional capital and local investments. What the report also shows is that the main investors are going ahead in their practices on several fronts: investment in mitigation and adaptation on climate change and new investments in strategic areas.

European and Australian investors are ahead and outperform their peers from North America in terms on general participation against climate change.

Most respondents consider climate change as material risk and they make reference to that in their investment policies. 57% of the asset owners have assessed climate risks, formal and informal.

investors

AO = Asset Owners
AM = Asset Managers

To date 26% of asset owners have changed their investment strategy due to climate results. Although this may seem low the message is positive – given the continuous uncertainty around global negotiations about climate policy.

Most of asset owners (78%) consider that integration of climate change into the selection of this manager is a key, but rarely mandates were given just based in climate considerations.

Investment strategies deal with issues such as clean energy, energy efficiency and sustainable wood production.

More than a half of investors (63% of assets managers and 62% of assets owners) invest in climate changes solutions.

Recently, four investors groups – Ceres’ Investor Network on Climate Risk (INCR) in the United States, the European Institutional Investors Group on Climate Change (IIGCC), the Investors Group on Climate Change (IGCC) in Australia and New Zealand, and the Asia Investor Group on Climate Change (AIGCC) – with the United Nations Environment Programme Finance Initiative achim steiner(UNEP FI) and Principles for Responsible Investment (PRI) have coordinated a statement which can be summarize in the from Achim Steiner, UN Under-Secretary-General and Executive Director of the UN Environment Programmme: “The perception prevails that we need to choose between economic well-being or climate stability. The truth is that we need both. What is needed is an unprecedented re-channelling of investment from today´s economy into the low-carbon economy of tomorrow. Investors are owners of large segments of the global economy as well as custodians of citizens’ savings around the world. Having such a critical mass of them demand a transition to the low-carbon and green economy is exactly the signal Governments need in order to move to ambitious action quickly”.

This statement is signed by 361 investors representing more than US $24 trillion in assets. The investor groups have published a new GLOBAL INVESTOR STATEMENT ON CLIMATE CHANGE detailing examples of action being taken by investors that support a low carbon, climate resilient economy. On it we can see the signatories involved. They have also launched a public online database of select low carbon investments made by asset owners such as pension funds and insurance companies.

Written by Juan Diego Berjón

Engineer specialized in Environmental Management, Business Management, BigData Analysis and GIS Technologies

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Juan Diego Berjón Juan Diego Berjón
Engineer specialized in Environmental Management, Business Management, BigData Analysis and GIS Technologies

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