Coalition of 70 investors worth $3 trillion call on world’s largest oil & gas, coal and electric power companies to assess risks under climate action and ‘business as usual’ scenario
A group of 70 global investors managing more than $3 trillion of collective assets today launched the first-ever coordinated effort to spur the world’s 40 top oil and gas, coal and electric power companies to assess the financial risks that climate change poses to their business plans.
Recent studies by the Intergovernmental Panel on Climate Change and the International Energy Agency have suggested that, in order to achieve the international goal of limiting global warming to 2° C, the world will need to live within a set carbon budget, and a significant portion of proven global fossil fuel reserves will need to be left in the ground.
The world is currently, however, on a path toward global warming of 4°C or more, which the World Bank warned must be avoided in order to prevent catastrophic climate change impacts.
The investors, most of them based in the United States and Europe, sent letters to the fossil fuel companies last month, requesting detailed responses before their annual shareholder meetings in early 2014. Investors signing the letters include California’s two largest public pension funds, the New York State Comptroller, F&C Management and the Scottish Widows Investment Partnership. read more