A 2009 report by the Asset Management Working Group of the United Nations Environment Programme Finance Initiative
The third iteration of the AMWG’s ‘Materiality Series’
Executive summary
I. A tipping point in the way we live and work
Information is critical to shaping beliefs. For investors, it can mean the creation of new market trends, in anticipation of real-world changes. In 2009, we are witnessing such a tipping point as evidence on the relevance of climate change pours in from every side.
Politically, the G8 nations have committed themselves to a target of an 80% cut in their greenhouse gas emissions by 2050, which means a revolution in the way the future global economy will operate. Huge volumes of data are materialising on how climate change will affect the business world—from scientists on changes in the natural environment, from technologists on how to perform a fundamental ‘engine change’ to ensure that the flow of greenhouse gases is drastically curtailed, and from policymakers on the way they will shape
behaviours and prices.
Responsible investors have been integrating climate change into their asset management for some time now, but mainstream investors still view the issue with some scepticism. This report brings together key reports from the investment world that demonstrate best practice on climate change, identifying the risks and opportunities, assessing how companies are dealing with them, and translating their performance and intentions into future financial returns. The emphasis is on corporate sector assets, but real estate is clearly an asset class sensitive to climate change and leading investors are active on this front as well.
See full Details, in pdf format.
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