Institutional Investors Group on Climate Change calls on ‘sustainable economic response’ to COVID-19

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INSTITUTIONAL Investors Group on Climate Change has issued a statement setting out ways to ensure the economic response to the corona pandemic is ‘sustainable, helps address climate change and supports action to achieve net zero emissions.’

The letter has been sent to a range of governments, including all members of the G20, by CEOs of the seven Founding Partner global investor groups behind the The Investor Agenda.

The Investor Agenda has been developed by seven Founding Partner investor groups: Asia Investor Group on Climate Change, CDP, Ceres, Investor Group on Climate Change, Institutional Investors Group on Climate Change, Principles for Responsible Investment and UNEP Finance Initiative.

Chief Executive Officer of the Institutional Investor Group on Climate Change, Stephanie Pfeifer, commented on the announcement: “Governments are rightly consumed with keeping their populations safe and providing financial support to individuals in need.

“Once people are taken care of, governments should be signalling their intentions for a sustainable recovery by incorporating climate conditions into financial support for companies.

“Longer term economic stimulus spending needs to focus on supporting green industries and infrastructure, and avoid further carbon lock-in.

“The policy frameworks already exist to steer a sustainable recovery, we need to ensure their implementation. We can’t leave climate action behind.”

The Institutional Investors Group on Climate Change is the European membership body for investor collaboration on climate change with more than 190 members, mainly pension funds and asset managers, across 14 countries, with over €28 trillion assets under management.

James Bevan, Chief Investment Officer at CCLA, one of the members of the Investors Group, commented: “The founding partners of The Investor Agenda are right to call for just and sustainable recovery plans as governments move from crisis management to rebuilding economies fit for the 2020s and beyond.

“We now have the opportunity to accelerate Paris-aligned transition pathways in key sectors, including electrical utilities, where the economic incentives increasingly back a rapid shift from brown to green.”

Roelfien Kuijpers, Head of Responsible Investments at DWS, another member organisation of the Investment Group, added: “In the wake of the still existing climate and environmental situation the Earth is facing we believe it is important that measures to reinvigorate economies in the wake of the pandemic have a green focus.

“DWS specifically recommends investments into energy efficiency measure in real estate, such as developing climate and energy standards for existing buildings and align incentives between building owners and tenants.

“We also advocate the strategic importance of impact investing in emerging market countries.”