Leading investors who control almost a third of the world's assets, approximately worth USD 42 trillion, have reached out to governments around the world to stop supporting fossil fuels. The joint statement also asked for measures for rapid reduction in carbon emissions. The move is to limit the damage caused by global warming.
The joint statement is being published ahead of the meeting of G7 leaders in Cornwall. Climate action is expected to be one of the significant topics of the G7 talks.
The statement made by the largest group of investors, who own a third of assets in management, is their first ever concerted call for climate action. The joint letter demanded that the plans made by governments should be in line with the estimates made by scientists.
Expert opinion has time and again shown that the world needs to limit global heating to 1.5 degrees above pre-industrial levels to avoid the worst impacts of the ongoing climate crisis. The letter also warned that the world could heat over 3 degrees and result in catastrophic climate changes (as scientists have speculated) in this century if the governments do not change course immediately.
The 457 signatories include the largest British asset managers like Aviva, HSBC Asset Management, Legal and General Investment Management and M&G. Other significant players like Allianz Global Investors, Amundi, Axa, BNP Paribas, and Nomura Asset Management also signed the statement.
The groups are urging the governments to "significantly strengthen" the strategies to reduce carbon emissions in the next 10 years. The long-term goal is to achieve net-zero emissions by 2050 or sooner. Some of the suggestions in the letter are measures to cut down the burning of fossil fuels, ban on new coal plants, and setting deadlines to phase out fossil fuels.
The G7 talks are also expected to discuss the recovery from Covid-19 and the taxation of multinational businesses. The statement from the investors also called for "sustainable Covid-19 economic recovery efforts".