The IRI and the Grantham Research Institute on Climate Change and the Environment at the London School of Economics have issued a new report, Climate Change and the Just Transition: A Guide for Investor Action. The report is accompanied by an investor statement, which has attracted the support of more than 100 institutions with over $5 trillion in assets under management (AUM).
Coinciding with the COP 24 Climate Conference in Katowice, Poland, the UN's Principles of Responsible Investment (PRI) and International Trade Union Confederation (ITUC) highlighted the critical role investors can play in fostering a dynamic and inclusive economy within climate change adaptation – a just transition. The report, intended to provide actionable steps toward this transition, was delivered in partnership with the Principles for Responsible Investment and the International Trade Union Confederation.
Authored by Nick Robins, Vonda Brunsting, and David Wood, the Guide outlines why investors should act and what they can do. In laying out the rationale for investor action, the report covers systemic risk, fiduciary duty, material value drivers, investment opportunities and alignment with societal objectives such as the Paris Agreement and the Sustainable Development Goals (SDGs). The Guide then provides a range of pracitcal examples for investor action, including investment strategy, shareholder engagement, capital allocation, policy dialogue and partnership.
As co-author Vonda Brunsting summarized, “We need workers and communities to be front and centre of the transition to a low-carbon economy. Investors can play an important role and this Guide aims to spur investor action, collaboration and experimentation on ways to achieve this.”