The world risks a major financial crisis if nothing is done about climate change. Now demands come from a little unexpected when the world’s big investors come together and demand action.
It is usually mentioned that the business community needs to become more involved in the climate issue, both with money and working methods. It seems the world’s major investment companies are in agreement. Now they have done a common thing to demand climate action.
In total, 415 investors sitting on a total of $ 32 trillion have signed a call, the Global Investor Statement, expressing their support for the Paris Agreement and vigorously calling on the world’s governments to quickly implement the necessary measures.
Fast on the private sector
The policy sends signals and creates incentives that control the capital flows in the global economy, writes companies that emphasize that politicians must create frameworks that support non-carbon intensive investments, which enable investment for climate adaptation and that create good transitions for affected staff and communities.
Their most important requirement, besides meeting the goals of the Paris Agreement, is to accelerate the private sector’s investment in the transition to using less coal. As well as the need to impose stricter requirements on companies’ climate-related financial reporting, so that climate risks receive a clear price.
They also express their concern that the world is lagging behind the target of two or preferably 1.5 degrees temperature rise and points out that there is a clear gap as to the level of ambition where the implementation of the current national action plans would lead to unacceptably large temperature increases, which would also have very negative financial consequences.
Risk of a new financial crisis
Those who signed during the call include some of the world’s largest pension funds, insurance companies and asset managers, but also other players with large assets such as churches and fundraising organizations. Some of the Swedish signatories are Alecta, several of the AP funds, Handelsbanken and the Swedish Church.
During the ongoing climate summit in Poland, investors have also come out and warned of the risk of a new financial crisis, several times greater than in 2008. The warning was directed to the world’s governments and was about rapid emission reductions and phasing out of coal. Subsidies for fossil fuels must cease and instead leave room for high taxes on carbon dioxide.
Several of the companies’ representatives have also commented on the serious risks of climate change and the large costs if not acted quickly, as well as the great opportunities for both growth and more jobs in a greener economy.