Some of the world’s largest investors have outlined their expectations of how companies should respond to climate change.
Jointly issued by three investor groups on climate change, the document outlines seven steps investors expect companies to take in order to minimise the risks and maximise the opportunities presented by climate change.
The seven steps cover areas of governance, strategy, goals, implementation, measurement, disclosure and public policy.
CalSTRS chief executive Jack Ehnes – who is also on the executive committee of the the Investor Network on Climate Change, one of the three investor groups behind the document – says that the guidelines provide a framework for engagement.
“These guidelines are a clear message to companies that investors expect them to step up and better navigate this complex climate challenge,” Ehnes says.
The guidelines are seen as being of particular importance for companies in carbon-intensive sectors, and those who may not have a considered strategy for managing climate change risks.
The guidelines demand companies report and disclose emission inventories as well as articulate in annual reports what the management deems to be the company’s material climate change risks and opportunities.
The other investor groups involved in formulating the guidelines are the European Institutional Investor Group on Climate Change and the Investors Group on Climate Change based in Australia and New Zealand.
To read the statement click here