Support for the Asset Owner Statement on Climate Stewardship, which outlines expectations across the investment sector, now tops US$2 trillion, following the addition of eight signatories since its launch in February.
The new signatories are: Caisse des Dépôts (CDC), IRCANTEC, Établissement de Retraite Additionnelle de la Fonction Publique, (ERAPF), Fonds de Réserve pour les Retraites (FRR), Mutuelle assurance des instituteurs de France (MAIF), Malakoff Humanis, Sammelstiftung Vita, and the United Nations Joint Staff Pension Fund (UNJSPF).
Launched with support of 26 asset owners worth US$1.5 trillion, the statement sets out clear and consistent expectations regarding climate stewardship, seeking to embed greater efficiencies into the stewardship chain, thus “empowering asset manager stewardship teams to deliver on their asset owner climate objectives” as part of their mandates.
Pierre Devichi, Head of Responsible Investment at ERAFP, which provides pensions for civil servants in France, said climate change is a key risk to long-term financial returns and called on asset managers to enhance their climate stewardship activities.
“Studies and experience have shown that stewardship activities – namely voting and engagement – are essential tools to influence the real economy towards decarbonation,” he said.
“ERAFP wants to highlight best practices and clearly set its expectations, aligned with those of many peers, to prompt asset managers to significantly bolster their action in this critical component of sustainable investing in order to effectively serve asset owners’ needs – and ultimately, those of beneficiaries.”
The statement was co-authored by Leanne Clements, Head of Responsible Investment for People’s Partnership, Vaishnavi Ravishankar, Head of Stewardship at Brunel Pension Partnership and Shipra Gupta, Investment Stewardship Lead at Scottish Widows.
“Asset owners continuing to set the bar on climate expectations, especially in this challenging external landscape, is extremely critical in the lead up to 2030, for the ultimate benefit of its members,” said Clements.
Separately, an analysis of 180 portfolios across the six largest pension fund systems globally – the Netherlands, UK, US, Canada, Australia, and Switzerland – warned that an unsuccessful transition to a net zero economy could wipe a third off returns to beneficiaries.
Investment solutions provider Ortec Finance said a failed low-carbon transition could wipe 33% off pension fund returns worldwide by 2050 in a climate scenario that tracks the current trajectory of global warming, due to “dual headwinds of shrinking growth and rising inflation”.
