Big Global Investors Urge Action On Climate Change
US: November 12, 2008
WASHINGTON - Global institutional investors holding more than $6 trillion in
assets pushed policymakers on Tuesday to quickly hash out a binding
agreement to cut greenhouse gas emissions and promote clean technology.
More than 130 big investors, including London Pensions Fund Authority, want
countries to agree to reduce the climate- warming emissions by 50 percent to
80 percent by 2050.
Those numbers are in line with global warming policy favoured by US
President-elect Barack Obama, who supports an 80 percent reduction in carbon
emissions by mid-century.
The investors also want policymakers to set long and medium term emission
reduction targets for developed countries and to provide for an expanded and
more liquid global carbon market.
Already big US investors, such as the California Public Employees'
Retirement System, with $185.6 billion of assets under management, have been
calling for legislation to promote new and existing clean technologies.
They have also called on the US Securities and Exchange Commission to force
publicly traded companies to disclose climate-related risks along with other
factors that affect their business.
"As institutional investors, we are concerned with the risks presented by
climate change to the global economy and to our diversified portfolios,"
said Mike Taylor, chief executive of London Pensions Fund Authority. "We are
... urging world leaders to implement strong and effective policies to
support us in allocating capital towards low carbon investments."
The group of global investors want countries to sign on to a new binding
agreement to succeed the Kyoto Protocol climate pact, which set binding
targets for industrialised countries to cut greenhouse gas emissions.
The European Union is aiming to cut greenhouse gas emissions 20 percent by
2020 and increase the share of wind, solar, hydro, wave power and biofuels
in their energy mix by the same date.
The United States is alone among major industrialized countries in rejecting
the Kyoto Protocol, but is participating in discussions to craft a follow-up
global agreement.
"It is time to put an agreement in place where the United States is
involved," said Mindy Lubber, the president of Ceres, a coalition of
investors and environmental groups working on climate change issues.
The global group of investors is hoping its voice is heard ahead of a
December climate change convention in Poland.
(Reporting by Rachelle Younglai; Editing by Andre Grenon)
REUTERS NEWS SERVICE
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