Earlier this month, UTAM joined more than 450 investors, representing US$41 trillion in assets, in signing a joint statement to world governments, urging leaders to accelerate action to address climate change.

“We stand at the beginning of a pivotal decade in which institutional investors and government leaders worldwide have the power to raise ambition and accelerate action to tackle the climate crisis,” the statement begins. “If we do not meet this challenge and change course immediately, the world could heat in excess of 3-degrees Celsius this century – far beyond the goal of the Paris Agreement to limit the global average temperature rise to no more than 1.5-degrees Celsius, which scientists say is necessary to avoid the worst impacts of climate change,” the statement begins.

Achieving this goal will require reducing global net carbon dioxide emissions by 45% from 2010 levels by 2030, “with a dramatic reduction of all greenhouse gas emissions essential for reaching net-zero emissions by 2050 or sooner.”

The signatories call on governments to undertake five priority actions before the 26th United Nations Climate Conference of the Parties (COP26) in November:

  1. Strengthen their Nationally Determined Contributions (NDCs) for 2030 in line with limiting warming to 1.5°C;
  2. Commit to a domestic mid-century, net-zero emissions target and outline a pathway with ambitious interim targets including clear decarbonization roadmaps for each carbon-intensive sector;
  3. Implement domestic policies to deliver these targets, incentivise private investments in zero-emissions solutions and ensure ambitious pre-2030 action; including: “the removal of fossil fuel subsidies by set deadlines, the phase out of thermal coal-based electricity generation by set deadlines in line with credible 1.5°C temperature pathways, the avoidance of new carbon-intensive infrastructure (e.g. no new coal power plants) and the development of just transition plans for affected workers and communities.”
  4. Ensure COVID-19 economic recovery plans support the transition to net-zero emissions and enhance resilience; and
  5. Commit to implementing mandatory climate risk disclosure requirements aligned with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.

“Governments, investors and companies must work together to address the climate crisis,” says Daren Smith, UTAM’s President and Chief Investment Officer. “We’re pleased to add our support to this global investor statement once again, and to collaborate with like-minded investors in calling for world governments to implement meaningful policies and strengthen their national plans to reduce greenhouse gas emissions.”

Read the full 2021 Global Investor Statement to Governments on the Climate Crisis.