Investors holding $22trn call for G20 action on climate change

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Schroders, LGIM, M&G and Aviva Investors are among a coalition of investors representing $22trn in assets calling for G20 action on climate change.

Leaders of the world’s 20 major economies will meet in Hamburg on Friday, where they will discuss globalisation and will also be presented with Mark Carney’s report from the Task force on Climate-related Financial Disclosures.

A letter signed by 389 global investors calls for leaders to implement frameworks outlined in Carney’s report, reiterate support for the Paris Agreement, drive investment into the low carbon transition, and bring forward energy plans that align with commitments to keep global average temperature rises under 2 degrees Celsius.

The investors urge the governments present to phase out fossil fuel subsidies and introduce carbon pricing where appropriate.

Donald Trump, who announced US withdrawal from the Paris Agreement in May, will be among the leaders present.

Investor Group on Climate Change chief executive Emma Herd says: “While the private sector can provide the investment required to build a secure, affordable and low emissions global energy system, we urge the G20 to set strong policy signals which provide the investment certainty needed to drive trillions of dollars into new clean energy investment opportunities.”

PRI managing director Fiona Reynolds says: “The US decision to withdraw from the Paris accord, while disappointing, has actually galvanised many investors and governments into taking greater action on climate policies, as we saw with the recent success of climate resolutions at Exxon and Occidental as well as through investor outreach to G20 countries.”

Asset managers among the signatories include Allianz Global Investors, HSBC Global Asset Management, Jupiter, Baillie Gifford, Amundi, EdRAM, Hermes, Nordea, Newton and Pictet Asset Management.