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Contact:
Peyton Fleming, Ceres, 617-733-6660, fleming@ceres.org
Patricia Charles, UN Foundation, 440-506-9564, patricia@unfoundation.org
Download: Climate Change Action Plan (pdf) U.S. and European Investors Tackle Climate Change Risks and OpportunitiesInvestors Make Bold Commitments to Energy Efficiency and Other Clean Technologies, Require Closer Scrutiny of Carbon-Intensive InvestmentsFebruary 14, 2008 NEW YORK CITY, NY — Nearly 50 leading U.S. and European institutional investors managing over $1.75 trillion in assets today released a climate change action plan at the United Nations that will boost investments in energy efficiency and clean energy technologies and require tougher scrutiny of carbon-intensive investments that may pose long-term financial risks. Additionally, European investors managing $6.5 trillion in assets supported the action plan "in principle." The action plan was announced at the Investor Summit on Climate Risk, hosted by Ceres and the United Nations Foundation, attended by more than 450 investor, financial and corporate leaders from around the world. Signatories to the action plan include state treasurers, controllers, pension fund leaders, asset managers and foundations from London, California, Florida, New York, Connecticut, North Carolina, Pennsylvania and a dozen other states. "Our goal is to transform the world economy into one that is clean, green and sustainable," said California State Treasurer Bill Lockyer, one of the 49 signatories, who serves on the board of the leading pension funds, CalPERS and CalSTRS, which collectively manage more than $500 billion in assets. "California's public pension funds have already committed over $800 million to this effort through investments in environmental technology. And they are actively pressing the corporate world to fully assess and disclose the risks and opportunities climate change presents for their business operations." "With today’s action plan, investors are advancing the need for closer scrutiny of investments to include the financial risks of climate change, while also harnessing emerging opportunities," said Florida Chief Financial Officer Alex Sink. "Florida is on board as the first State Treasury in the nation to require fund managers to disclose how they incorporate climate risk into prudent investment management." Noting that climate change presents both material risks and significant opportunities, the investors pledged to collectively invest $10 billion in clean technology opportunities over the next two years and to incorporate green building standards — such as LEED (Leadership in Energy Efficiency and Design) and Energy Star — into their investment decisions. Calling energy efficiency "one of the fastest, easiest and cheapest ways to significantly reduce emissions and improve the bottom line," the investor group pledged to reduce energy use in core real estate holdings by 20 percent over the next three years. A new McKinsey Global Institute (MGI) report, also announced at the investor summit, concludes that major investments over the next decade in energy productivity — the level of output achieved from the energy consumed — could earn double-digit rates of return for investors. Such investments would cut global energy demand growth by at least half and achieve up to half of the reductions of greenhouse gas emissions that experts say is required to prevent the world's mean temperature from increasing by more than 2 degrees centigrade. The action plan calls for a series of specific steps by investors to address the growing risks and opportunities from climate change. The nine goals include policy actions aimed at the Securities and Exchange Commission (SEC) and Congress, engagement with companies to improve their disclosure and responses to climate change, minimizing climate investment risks and maximizing climate-related investment opportunities. Among the investor commitments: - Support clean technology, with a goal of deploying $10 billion collectively over the next two years.
- Aim for a 20 percent reduction in energy used in core real estate investment holdings over a three-year period, and consider green building standards in making investment decisions.
- Require and validate that investment managers, investment consultants and advisors report on how they are assessing climate risks in their portfolios, whether from new carbon-reducing regulations, physical impacts or competitive risks.
- Encourage Wall Street analysts, rating agencies and investment banks to analyze and report on the potential impacts of foreseeable long-term carbon costs, in the range of $20 to $40 per metric ton of CO2, particularly on carbon-intensive investments such as new coal-fired power plants, oil shale, tar sands and coal-to-liquid projects.
- Push the SEC to issue guidance leading to full corporate disclosure of climate risks and opportunities.
- Push Congress for a mandatory national policy to reduce national greenhouse gas emissions in accordance with the 60-90 percent reductions below 1990 levels by 2050 that scientists suggest is urgently needed to avoid the worst and most costly impacts from climate change.
"This action plan reflects the many investment opportunities that exist today to put a dent in global warming pollution, build profits and benefit the global economy," said Mindy S. Lubber, president of the Ceres investor coalition and director of the Investor Network on Climate Risk. "Leveraging the vast energy efficiency opportunities at home and abroad holds especially great promise for investors." "Thanks to the leadership of many participating at this summit, the idea that climate risk affects many industries around the world that are embedded in our portfolios is being absorbed into the very fiber of our financial markets, from banking to investment, from insurance to re-insurance," said Connecticut State Treasurer Denise Nappier. "As institutional investors, we need solid information about a company's environmental risks and opportunities so that we can grow our bottom line while shrinking our carbon footprint," said California Controller John Chiang. "Energy efficiency provides the biggest opportunity for helping developed and developing countries alike," said Timothy Wirth, president of the United Nations Foundation. "Investors have a critical role in helping drive this new energy economy forward. Their commitments here today are groundbreaking and will not only reduce the devastating impacts of climate change but will help grow the global economy at the same time." The summit comes as worldwide investor attention on climate change dramatically increases. In the last two years, investor and asset manager participation in the Investor Network on Climate Risk has more than doubled, to more than 60 institutional investors and with collective assets totaling $4.5 trillion. At today's summit, Deutsche Asset Management, which manages over $800 billion in assets, announced it was joining INCR, increasing INCR's total member assets to over $5 trillion. Today's climate risk meeting was hosted and organized by the United Nations Foundation, the United Nations Fund for International Partnerships and Ceres, which directs the Investor Network on Climate Risk. Ceres is a U.S. coalition of investor and environmental leaders that has spearheaded national and international investor activity on climate risk issues. A webcast of the summit and press conference can be found at www.un.org/webcast. ### About Ceres and INCR
Ceres is a leading coalition of investors, environmental groups and other public interest organizations working with companies to address sustainability challenges such as climate change. Ceres also directs the Investor Network on Climate Risk (INCR). For more information, visit www.ceres.org and www.incr.com About the United Nations Foundation
The UN Foundation was created in 1998 with entrepreneur and philanthropist Ted Turner's historic $1 billion gift to support UN causes and activities. The UN Foundation builds and implements public-private partnerships to address the world's most pressing problems and also works to broaden support for the UN through advocacy and public outreach. The UN Foundation is a public charity. For more information, visit www.unfoundation.org About the United Nations Fund for International Partnerships (UNFIP)
UNFIP was established by the Secretary-General in March 1998 to serve as the interface in the partnership between the UN system and the UN Foundation -- the public charity responsible for administering Ted Turner's $1 billion contribution in support of UN causes. The UN Partnership with Ted Turner's Philanthropy has enabled the UN family to find creative solutions to global problems. The success of this partnership has led to the evolution of the United Nations Office for Partnerships, which manages UNFIP, the UN Democracy Fund, as well as Partnership Advisory Services and Outreach. The Office serves as a gateway for facilitating UN-civil society partnership initiatives in support of the UN system's programme of work. For more information, visit www.unfip.org.
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