Global investors are moving forwards on climate action, but more attention is needed to incorporate climate change within investment strategies and products to bend the emissions curve by 2020.
That’s according to a new PRI-Novethic report, which assessed findings from a review of 1,200 investors.
Investor action on climate change finds that in 2017, 74 percent of asset owners are acting on climate change and see it as one of the most important long-term trends for investment, with this figure rising to 83 percent in France. Furthermore, nearly 60 percent of asset owners worldwide, and 78 percent in North America, are looking for companies to address climate change.
Areas for improvement include incorporation of climate change considerations into manager contracts (only 8 percent of respondents) and asset allocation (17 percent of respondents).
The report, also available in French, includes a special focus on the practices of French investors, with the aim of sharing good practice globally. This follows on from Article 173, France’s new climate disclosure regulation.
The PRI’s Reporting Framework climate indicators will be strengthened in January 2018 to incorporate FSB Task Force guidance for investor reporting, including how climate-related issues are incorporated into investment strategy, products and engagement activities.