The initiative 

The Collaborative Sovereign Engagement on Climate Change helps investors to work collaboratively to support governments to mitigate climate change, in line with investors’ fiduciary duty to mitigate financial risk and maximise long-term value of assets. This includes supporting countries to fulfil their commitments to the Paris Agreement goals, where applicable. 

Through sustained, two-way engagement, participating investors are seeking to supporting sovereigns to: 

• Close the gap between current action and a Paris-aligned emissions reduction trajectory, where applicable; 
• Establish a detailed, credible and economy-wide net zero transition plan with supporting policy mechanisms, budget expenditure and investment structures; 
• Build greater climate adaptation and resilience across the economy and community to avoid worsening disruption and damage from physical risks; and 
• Improve disclosure of sovereign exposure to climate risks and opportunities consistent with international standards. 

The PRI is currently supporting or establishing engagement groups with a focus on Australia, Canada and Japan. Further focus markets are being considered on an ongoing basis.