Tuesday 10 July 2018

Six sovereign wealth funds commit to help tackle climate change

Six sovereign wealth funds (SWFs) that represent more than $3 trillion (£2.3tn) in assets have pledged to help tackle climate change.

They have committed to only invest in companies that factor climate risks into their strategies to help achieve the Paris climate targets.

They include the Abu Dhabi Investment Authority, Kuwait Investment Authority, the New Zealand superannuation Fund, Norges Bank Investment Management of Norway, the Public Investment Fund of the Kingdom of Saudi Arabia and the Qatar Investment Authority.

The organisations established the One Planet Sovereign Wealth Fund Working Group in December last year and have now launched a new Framework, with the objective of integrating climate change analysis in the management of large, long term and diversified asset pools.

They said: “By using the Framework, SWFs can reinforce their long term value creation, improve their risk-return profile and increase long term portfolio resilience by factoring and integrating climate issues into their decision-making.

“The One Planet SWF Group hopes that other long term institutional investors will be able to make use of this Framework in the execution of their mandates and investment objectives.”